Giving in to mounting pressure by nonprofit Workers Rights Consortium (WRC), denim brand Levi Strauss & Co has agreed to pay in full for all finished, ready-to-ship orders and in-progress garment production. The company has also agreed to use raw materials already received by suppliers for product orders in later seasons.
Levi’s was previously named by WRC in a list of brands that have not made sufficient commitment to pay for orders, on time and in full. The consortium said that the brand’s decision to delay payments relative to agreed terms placed suppliers’ cash flow and their ability to pay garment worker wages at risk.
Levi’s has also launched a new program in collaboration with the International Finance Corporation (IFC) that allows its suppliers to get early payments at favorable market rates. The brand also supports suppliers in locations not served by the IFC program. In April, the Levi Strauss Foundation granted $1 million funds to address health, food and safety-net needs facing apparel workers in sourcing communities.