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Levi's makes commitments to paying suppliers during COVID-19

Tuesday 21st July, 2020

Levi Strauss & Co the American clothing company known worldwide for its Levi's brand of denim jeans has announced it will pay all suppliers for finished ready-to-ship orders and in-progress orders.

The company said, in line with our history of strong, collaborative supplier relationships and a longstanding commitment to worker well-being in our supply chain, we are working closely with our suppliers to find the best way through the global COVID-19 pandemic.    

In May the company was criticised by the Worker Rights Consortium (WRC), for failing to make sufficient commitments to pay for orders on time and in full.

The company also plans to use raw materials already received by suppliers for product orders in later seasons.

“Our sourcing leads are staying in close conversation with suppliers and we are factoring their circumstances into our decisions”, said Levi’s.

The company has worked with the International Finance Corporation (IFC) since 2014 on a program that suppliers can use to get early payments at market rates.

“As our stores and wholesale partners open back up, we are starting to see demand come back and production turning back on”.

“We have shared, and will continue to update, health and safety guidelines related to COVID-19 with suppliers.”

The Levi Strauss Foundation announced in early April that it is granting $1 million to address health, food and safety net needs facing apparel workers in sourcing communities, with a focus on women.