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SAN FRANCISCO - Levi Strauss & Co. has said it will close its remaining manufacturing and finishing plants in North America as part of the shift away from owned-and-operated manufacturing that the company began several years ago.

The company - a California icon since it was founded at the height of the California Gold Rush in the 1850s - plans to close its sewing and finishing operations in San Antonio by year-end, displacing approximately 800 workers.

Its three Canadian facilities - two sewing plants in Edmonton, Alberta and Stoney Creek, Ontario, and a finishing center in Brantford, Ontario - are expected to close in March 2004, displacing approximately 1,180 employees.

Production from the San Antonio and Canadian facilities will be shifted to the company's global sourcing network.

"Regrettably, these closures will affect workers who have done a tremendous job for the company over the years," said Chief Executive Officer Phil Marineau. "We understand the impact this change will have on them, their families and communities. As we have done in the past, our intent is to provide a comprehensive separation package for employees, along with support for the local communities through philanthropic grants.

"We're in a highly competitive industry where few apparel brands own and operate manufacturing facilities in North America. In fact, we are one of the last companies to do so," he said. "In order to remain competitive, we need to focus our resources on product design and development, sales and marketing and our retail customer relationships."

According to Martineau, the company, which markets its products in more than 100 countries, "intends to offer a comprehensive separation package to help employees transition successfully to new opportunities. The details of the separation packages for both Canadian and US employees will be determined through upcoming discussions with the unions."

The Levi Strauss Foundation has said it will "partner with government agencies and community organizations to leverage our resources collaboratively to address the unique needs of the local displaced workers," said Theresa Fay-Bustillos, executive director of the Levi Strauss Foundation and vice president of community affairs for the San Francisco-based company.

The company, she said, "has established a Community Transition Fund to provide grants that will help strengthen the economic base in San Antonio and affected Canadian communities and help employees gain access to a wide array of economic and educational opportunities."

"As the first multinational company to develop a code of conduct, [Levi Strauss] is committed to ensuring that individuals making its products anywhere in the world do so in safe and healthy working conditions and are treated with dignity and respect," Martineau said.

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