Levi 'S Reduces Kampuchea Supply Factory Order

Levi Strauss & Co. confirmed that due to the unstable political situation of the country and the suppression of workers' rights by the authorities, the company has reduced orders for supply factories in Kampuchea this year. Workers have launched a nationwide strike since the end of last year, raising the minimum wage to $160 a month.

In January, Cambodia The government security department opened fire and harassed workers in Phnom Penh, killing at least 5 people and injuring more than 40 people. 23 trade union members, workers and spectators were arrested and charged with violence and destruction of property.

The suppression of workers has always been the focus of attention of international organizations and major clothing brands, such as Levi 's Gap, H&M and Puma. After the shooting incident, these brands jointly held high-level meetings. One of the representatives of Industri ALL Global Union revealed that one of the brands reduced the purchase volume by 50% immediately after the meeting.

Levi Strauss & Co., the company has asked for Supplier Reduce production to reduce the risk of supply chain and ensure shipment. The spokesman also added that the stability of the political situation and respect for workers' rights and human rights are crucial to the company.

Previously, the reporter has reported that Levi Strauss & Co. said that the restructured company operation framework will be phased out in the next 12 to 18 months, and 800 employees will be unemployed. This will reduce the number of management personnel, eliminate multiple jobs and transform the company structure. Once operational efficiency is improved, the company will save 1.75 to $200 million a year.

By the end of November 24th last year, Levi Strauss & Co. had 16000 employees. The net income recorded by the company in the fourth quarter of last year dropped by 67.9%, to only $17 million, up from $53 million in 2012. Meanwhile, the company's revenue fell by 0.2 percentage points, from $1 billion 297 million in the 2012 fiscal year to 1 billion 295 million dollars in the same period. Gross profit margin fell to 49% from 50% in the past year.