Levi Strauss & Co. pioneered supplier workplace codes of conduct with its Terms of Engagement in 1991. This pamphlet was published in Portugese. Levi’s commitment to workplace responsibility was tested in 1992 when a news report revealed that a supplier in Saipan was abusing its workforce. Mostly immigrants, the workers were working as much as 11 hours a day, seven days a week, for as little as $1.65 an hour with no overtime pay (the minimum wage in Saipan was $2.15 an hour). The story was especially embarrassing because the Northern Mariana Islands, a protectorate of the U.S., was allowed to label the goods Made in the USA. Levi’s canceled their contract. In the late 1990s the practice of workplace codes of conduct became relatively common in the garment industry.
The trend towards offshore production provided the opportunity for large cost savings but at the same time presented new problems of control. Manufacturers and retailers who worried about poor conditions in subcontractors’ factories issued codes of conduct. Enforcement of the codes of conduct was uneven.
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