Levi Strauss's decision draws various reactions

JAKARTA (JP): The decision of San Francisco-based Levi Strauss & Co., the manufacturer of Levi's and Dockers brand clothing, to stop its contract with the Jakarta-based PT Duta Busana Danastri garment factory has drawn various reactions from a number of experts here.

Frans Hendra Winarta, a noted lawyer, praised the action as proving that an American company can have a commitment to establishing workers' rights despite a profit-oriented policy. "It will set a good precedent."

The representative manager of Levi Strauss confirmed here on Monday that his company has stopped placing orders with PT Duta Busana Danastri on the grounds that the Indonesian company is ignoring guidelines on workers' rights.

"It's true. We don't place further orders with them," Johnny Tse said, contradicting an earlier statement from the executive of the local garment company, who tried to cancel the termination of orders.

Earlier, Tse's headquarters informed The Jakarta Post that Levi Strauss & Co. has traditionally enforced a rule with its local partners, which requires that the local companies obey local laws, respect workers' rights and provide a good and healthy work environment.

Teten Masduki, a labor specialist of the Indonesian Legal Aid Foundation, said he doubted whether Levi Strauss has a sincere commitment to labor rights.

There are 25 garment factories in Indonesia, which take orders from Levi Strauss, 12 of which have been recorded to have serious problems with their workers.

He doubted whether Levi Strauss would thoroughly check the working conditions at those companies as such an undertaking would likely hamper its drive to reduce production costs by contracting its output to Third World countries such as Indonesia.

Good example

Economist Didik J. Rachbini, called the decision "a good example" for other entrepreneurs to follow. "We can no longer be economic animals."

Secretary of the International NGO Forum on Indonesian Development Agustinus Rumansara said that he doubted if the decision was really motivated by the workers' interests.

Tse declined to give further details, saying that his branch office here is not authorized to deal with such a "high level decision."

In the latest development, the workers and the management of PT Duta Busana Danastri agreed on Monday to establish a new union unit and an arbitration body whose election will be held democratically.

The workers' spokesman said that during the negotiations the management refused to raise their wages, not even one rupiah.

Company chairman Siegfried Tedjojuwono, who briefed his staff prior to the four-hour meeting, declined to comment.

Yesterday the company was busy preparing to welcome members of the National Commission on Human Rights and the Ministry of Manpower who are scheduled to visit the factory today. (anr/09)