Statement by Bruce Raynor, Secretary-Treasurer, UNITE, Regarding Levi Strauss & Co. Announcement of Plant Closings

Business Wire, Feb 22, 1999

NEW YORK--(BUSINESS WIRE)--Feb. 22, 1999--Bruce Raynor, Secretary-Treasurer of UNITE (Union of Needletrades, Industrial and Textile Employees), made the following statement in response to today's announcement of plant closings by Levi Strauss & Co.:

"We regret this decision by Levi Strauss & Co. We met with the company in January, when they informed us of their strategic needs and declining business, resulting in their intention to close plants. Their drop in sales has been evident in the plants for the last 6 to 12 months as production has steadily declined.

"We expressed a strong desire to keep plants open. Though nothing can replace lost jobs, if plants close where UNITE is represented, we expect the workers to be well taken care of as they rebuild their lives. We negotiated the same severance package from previous Levi's shut downs, the richest package of severance benefits ever given to North American apparel workers -- including a flexible allowance of up to $6,000 for training, education and business start-up expenses, extended medical coverage, improved early retirement program, and up to three weeks of severance pay for each year of service. Many senior sewing machine operators will receive in excess of $10,000 in severance pay alone.

"UNITE has always fought -- and will continue to fight -- to keep manufacturing in North America, through industrial strategies that help make companies competitive and by arguing for fair trade laws. North American workers shouldn't have to compete with low wages and lax working conditions.

"In the case of Levi Strauss & Co., they are still a major North American producer, employing 6,000 UNITE workers in the remaining facilities -- workers with the best pay and benefits of any North American apparel workers.

"The fact is, most garment manufacturing is geared toward a race to the bottom. Most of the companies that compete directly with Levi Strauss either haven't manufactured garments here for years or have never manufactured in North America. For instance, Guess? moved its sewing to Tehuacan, Mexico, to benefit from low wages and deplorable working conditions. Ralph Lauren moved all of its jeans' production to Mexico, despite their product's high retail price. Tommy Hilfiger produces all of its jeans in Asian sweatshops. Warnaco, the owner of Calvin Klein Jeans, recently announced the shut down of their two remaining US factories to move work to Mexico, but we resisted. We are now negotiating to keep those factories in the US -- and we expect a successful conclusion. Clearly, Levi Strauss and Co. is under enormous competitive pressure, but we are saddened by their decision to join the race to the bottom.

"This points out what UNITE said when we opposed NAFTA and fought fast track trade extension. We said that NAFTA would send US jobs to Mexico, retailers and the apparel industry said no. Unfortunately, we were right and they were lying. North American workers understand that without equitable trade laws, more jobs that sustain families will leave. US textile and apparel workers work hard, and make only a modest living. We believe they have a right to expect their government to support trade policies that sustain jobs, families, and communities."

UNITE is the pre-eminent apparel and textile union in North America, known for its aggressive organizing and defense of workers' rights.