January 29, 2007

Levi Strauss drops from first to fifth place in ethical ranking after refusing to commit to living wage

Canada's Ethical Trading Action Group (ETAG) has dropped Levi Strauss & Company's ranking from first to fifth place in its 2006 Transparency Report Card after the company was suspended from the UK-based Ethical Trading Initiative (ETI) for refusing to make a commitment to a living wage for the thousands of workers worldwide who manufacture its products.

Levi Strauss & Co was ranked number one in ETAG's 2006 Transparency Report Card, which compared 30 major apparel retailers and brands based on the information they provide to the public on their efforts to address labour rights issues in their global supply chains. As a result of Levi Strauss & Co's suspension from ETI, ETAG has reduced Levi's score from 78% to 69%, placing it fifth in the ranking, behind Reebok, Mountain Equipment Co-op, Adidas, and Gap Inc.

The Ethical Trading Initiative (ETI) is a UK-based alliance of companies, non-governmental organizations (NGOs) and trade unions that promotes and improves the implementation of corporate codes of conduct that cover supply chain working conditions. The ETI Base Code, which member companies must strive to meet, sets out minimum labour standards for their supplier factories around the world, including payment of a living wage by local standards.

"Real wages in the global apparel industry have been dropping in recent years as international brands slash the prices they pay to their suppliers to make their clothes," says Lynda Yanz, Co-ordinator of the Maquila Solidarity Network, which acts as the secretariat of ETAG.

"Garment workers' wages are almost always insufficient to meet the workers' basic needs. Now more than ever, major brands and retailers have a responsibility to ensure that the workers that produce their goods are paid a living wage.

"It's not good enough to say local markets in developing countries will set appropriate wage levels," says Yanz. "Not while brands and retailers demand ever-lower prices for their manufactured goods and move production to cheaper locales at a dizzying pace.

"Brands and retailers must commit to addressing the issue of living wages in a systematic way in cooperation with trade unions, NGOs and governments," says Yanz. "We are calling on Levi Strauss and other brands to commit to actively and systematically address the living wage issue through their participation in multi-stakeholder initiatives like the Ethical Trading Initiative."

The Ethical Trading Action Group (ETAG) is a Canadian coalition of faith, labour, teacher and non-governmental organizations advocating for government policies, voluntary codes of conduct and ethical purchasing policies that promote humane labour practices based on accepted international labour standards. ETAG member organizations include: Canadian Autoworkers Union, Canadian Council for International Co-operation, Canadian Labour Congress, Canadian Union of Public Employees, KAIROS: Canadian Ecumenical Justice Initiatives, Maquila Solidarity Network, Ontario Secondary Schools Teachers Federation, Oxfam Canada, Steelworkers Humanity Fund, and UNITE HERE.

For further information, contact:
Kevin Thomas, 416-532-8584

For more information on the Ethical Trading Initiative, visit: www.ethicaltrade.org

For more information on "Revealing Clothing: ETAG's 2006 Transparency Report Card", click here.

Maquila Solidarity Network / Ethical Trading Action Group 606 Shaw Street, Toronto, Ontario, Canada M6G 3L6 416-532-8584 (phone) | 416-532-7688 (fax) www.maquilasolidarity.org