Levi Strauss's decision draws various reactions

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)