Controversy Surrounds Levi’s Following Mass Layoffs by Supplier

Levi’s, renowned for its global brand and ethical claims, faces scrutiny following a report by an independent labor monitoring group. Critics contend Levi’s overlooked its own labor standards by maintaining ties with a Turkish factory that dismissed approximately 400 workers for unionizing and striking over wages and working conditions.

Turkey plays a pivotal role in the apparel supply chain, exporting about $30 billion in apparel and textiles annually according to the Istanbul Exporters’ Association, highlighting its significance in global trade.

Ozak Tekstil’s factory in Turkey’s Sanliurfa region, a major producer of Levi’s jeans, has come under scrutiny following allegations of labor rights violations. According to a report by the Worker Rights Consortium (WRC), the factory also manufactures clothing for brands like Zara, Hugo Boss, Guess, Mango, and Ralph Lauren.

Seher Gulel, a former quality control worker at the factory, reported being paid Turkey’s minimum wage of about $15 a day. She described a work environment marked by pressure, bullying from managers, and long hours extending past legal limits. Despite Turkish labor laws stipulating an 11-hour workday limit, Gulel often worked from early morning until midnight or later, citing frequent illegal overtime.

After joining Birtek-Sen, a new union, Gulel was dismissed within 10 days by Ozak Tekstil, allegedly for quality control errors—a move that triggered a mass walkout by hundreds of factory workers. Ozak Tekstil defended its actions, stating it terminated employees who refused to return to work, despite claims that the firings violated labor rights laws.

Levi’s, responding to the controversy, acknowledged that the mass firings contradicted its own supplier code of conduct, which upholds the rights to free association and collective bargaining without interference. In correspondence with Birtek-Sen, Levi’s instructed Ozak Tekstil to reinstate the dismissed workers or face further action to protect workers’ rights.

‘Meaningless’ standards

Despite Levi’s insistence, Ozak Tekstil did not fully reinstate the workers it had dismissed following a strike, stating it offered most of them their jobs back without strike continuation rights, but only a few accepted. Levi’s acknowledged this breach of its code of conduct in April, yet expressed hesitation about severing ties with Ozak and potentially causing further unemployment.

WRC executive director Scott Nova condemned Levi’s response, criticizing it for allowing the factory to continue operations despite what he described as a flagrant disregard for workers’ rights. Nova accused Levi’s of prioritizing cost-effective production over upholding labor standards, signaling a troubling message to its global network of suppliers.

In response to concerns raised by CNN, Levi’s emphasized its commitment to supporting safe and productive workplaces, stating it takes allegations of restricting freedom of association seriously. Despite the mass firings at Ozak Tekstil, Levi’s chose to maintain its sourcing relationship to prevent additional job losses. However, Levi’s clarified that the future of this partnership hinges on Ozak Tekstil’s compliance with a detailed remediation plan addressing freedom of association, working hours, and health and safety.

Regarding Seher Gulel’s claims of excessive overtime and managerial abuse, Levi’s did not provide a comment to CNN.

Hugo Boss acknowledged the accusations and stated it is monitoring the situation at the Sanliurfa plant. The German brand affirmed that Ozak Tekstil complies with its social standards, which are mandatory for their business relationship. Carolin Westermann, a spokesperson for Hugo Boss, noted that a trade union has been active within the company for over a decade.

‘Blacklisted’

Following their dismissals from Ozak Tekstil, many former employees, despite receiving severance payments, are struggling to secure new employment. This difficulty is compounded by their inclusion in a government database where they have been labeled with derogatory codes. Seher Gulel, who has been unemployed for seven months, and former union representative Funda Bakis, jobless for over six months, both claim they have been effectively blacklisted.

According to Gulel’s dismissal notice, her record shows “code 50,” indicating she posed a safety risk or caused significant damage that couldn’t be covered by her wages. Bakis received “code 46,” suggesting misconduct such as breach of trust or divulging professional secrets. Ozak Tekstil defended its decisions as justified but did not elaborate further on the codes used.

Neither Ozak Tekstil nor Levi’s responded to CNN’s inquiries regarding the reasons for these codes or the blacklisting allegations.

Funda Bakis, now living with her parents in cramped conditions alongside others, faces limited job prospects, potentially restricted to seasonal farm work. Disappointed in Levi’s response, she expected more from the global brand known for advocating humane working conditions. Bakis highlighted the hardships faced by fired colleagues, some with hungry children at home.

The Worker Rights Consortium (WRC) indicated Levi’s has declined financial assistance for the dismissed workers, according to ongoing discussions. Meanwhile, Ozak Tekstil maintains the December dismissals were unrelated to wage or hour issues, asserting it provides competitive pay and optimal working conditions in Sanliurfa.

However, 21 former employees, including Gulel and Bakis, are pursuing legal action against Ozak Tekstil for unpaid wages, overtime, severance, and holiday pay. Their lawsuit also alleges wrongful termination due to union affiliation, a claim contested by Ozak Tekstil.

Bakis expressed frustration over the injustices they have faced and hopes for a fair resolution moving forward.