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Sights Denim Workers Demand Severance Pay and New Jobs

When This Levi's Supplier Runs Away

Levi's Responds With More Double Talk

Sights Denim Systems: On September 17, more than 950 workers from Sights Denim Systems in Morelos, Coahuila were guarding the factory where the previous week they had been working. This maquila was a finishing and stonewashing center for Levi's Jeans. [The same as the Lajat/Levi's supplier in Gomez Palacio, Durango.] Workers at Sights Denim were laundering 135 thousand jeans weekly.

In mid-September, during the Mexico Independence Day holiday weekend, the company suddenly started removing all the inventory--computers, machines and jeans--trying to close the plant without giving the workers any notice or paying them their severance payment. Once the workers saw what was happening, they intercepted the removal process and blocked the trailer trucks loaded with jeans from leaving.

Workers said that Deo Sainz is one of the owners of Sights Denim in Kentucky and he gave the order to close the plant and run away without paying the severance payment.

Sights is a subcontractor for a Levi's supplier. Workers took about 200,000 Levi's jeans from seven trailers trucks to guarantee their severance. They called the Labor Board [CAB] in Piedras Negras because Morelos is such a small town that they do not have their own CAB office. The workers also hired a lawyer from Piedras Negras and demanded legally that the CAB hold the assets of the company. Many of the workers had more than six years seniority. The lawyer estimated they were due about 14 million pesos just in severance payments, but the material they hold does not cover this amount.

On September 20, Francisco del Bosque, the Labor Department representative in Coahuila, held the 200 thousand Levi's jeans that the workers intercepted and the jeans were then loaded into the plant. If the company that owns the jeans does not appear to claim them, the Labor Department will order them to be sold at auction in order to pay the workers' severance payment. At the first hearing on October 13 Sights did not appear.

According to some workers, Levi Strauss representatives visited Morelos and talked with the labor authorities, arguing that the jeans belong to Levi's as part of their production and not to Sights Denim Systems, the subcontractor who was closing. Other workers mentioned that the Levi's supplier was Single Source Apparel who claimed the jeans on behalf of Levi's. Single Source offered 3 million pesos for the pants. On September 21st the workers' lawyer declared that the total severance payment amount is 17 million pesos [1.6 million dollars.] While Single Source Apparel is trying to negotiate and rescue the jeans, the workers decided that nobody will move them from the plant. So they are taking turns guarding the jeans and machines and called CJM for support.

Levi's Double Talk: The Sights Denim Plant was a certified Levi's supplier. Every day when workers entered to work they were passing by the Levi's Code of Conduct in two languages framed and publicly displayed on the factory wall.

As part of the CJM "Jeans with Justice Campaign" CJM members held a conference call with Sights Denim Systems/Levi's workers and Levi's Vice President for Global Codes of Conduct, Michael Kobori, to address this issue.

The workers were asking Levi's to stand by their corporate ethics. The workers also asked Levi's to "give them a hand" by insuring they get the money that is legally owed them. They urged Levi's to facilitate the re-opening of the plant because they wanted their jobs back.

Levi's admitted that their supplier violated Levi's Code of Conduct by running away. But then they said they "don't have much influence over Sights" and can't interfere in complex legal negotiations. They offered the help of an NGO funded by the Levi Strauss Foundation who would "retrain" the Sights workers. They claim that there has been a reduction in consumer demand for Levi's, so they can't make any promises about reinvesting in Morelos, Coahuila where these workers are located.

We believed this answer was not enough. With profits at 8 billion, Levi's is hardly in crisis. We let them know that they cannot hide their corporate irresponsibility behind progressive rhetoric.

The workers' charged that this Levi's supplier was also contaminating the water source in the area and that some workers at the plant are suffering from lung diseases.

Sights Denim Workers continued guarding the plant for months, holding out for their severance. Meantime, Levi's waiting game was leaving over 900 families in Morelos hungry. When members of the CJM Action Committee set several conferences call and organized several actions and insisted that Levi's enforce their code of conduct with Sight Denim System or Single Source Apparel Levi's had no other choice than to pressure them in order to recover the 250, 000 Levi's Jeans.

On January 13th, Levi's Latin American Director, Miriam Rodriguez, called CJM's Executive Director and informed her that by January 17th Single Source would be paying 10 million pesos [one million dollars] to the workers as the first payment of their severance. But Single Source didn't pay the money they offered the workers. CJM members keep pressuring Levi's and by January 26th Levi's said that they would follow up because their understanding was that Single Source was making three wire transfers to the CAB in Piedras Negras to pay the severances of the workers. The workers were waiting and hoping that Levi's supplier would be accountable; otherwise the CAB would call for an auction to sell the Levi's jeans and cover the severance payments owed to the workers. A company from Seattle called CJM saying they read our web page and they were interested in buying the Levi's jeans that the workers were holding. CJM informed Levi's Latin American Director and finally by February 1st Single Source paid the 10 million pesos [almost a million dollars] as severance payment in order to rescue the Levi's jeans. This was the equivalent of only 52% of the money owed to the workers. Finally these workers received a partial amount of what Sights Denim and Single Source own them. The CAB will auction the equipment to pay the remainder of the amount that still is owed the workers. The workers hope that the corrupt officials on the labor board do not take their money and that they do in fact receive what is left owing to them.

After five months of resistance almost 950 families of a small town in Morelos, Coahuila finally received almost a million dollars as severance payment, money that went directly into their communities. Levi's, and especially Vice President Michel Kobori, learned that they have to respect workers' rights and their suppliers must be accountable. In this case, Single Source also learned this lesson. They both are being held accountable to the workers, thanks to the international pressure CJM coordinated.