Levi Strauss has shifted production abroad to cut costs

Nearly 2,000 jobs will be lost as the firm transfers manufacturing to cheaper plants outside North America.

The company - which celebrated its 150th birthday earlier this year - is seeking to cut costs as it fights increasing competition in the clothing sector.

The plant at San Antonio, Texas is set to shut down before the end of the year while its three factories in Canada are all due to be closed by March 2004.

"Regrettably, these closures will affect workers who have done a tremendous job for the company over the years," said Levi Strauss chief executive Phil Marineau.

"We're in a highly competitive industry where few apparel brands own and operate manufacturing facilities in North America.

"In order to remain competitive, we need to focus our resources on product design and development, sales and marketing and our retail customer relationships."

Government blamed

The union representing Levi workers blamed the move on US trade policies rather than the company itself.

"These plant closings are yet another indictment of a failed trade policy that is destroying entire industries and communities as companies scour the globe for the cheapest, most vulnerable labour they can find," said Bruce Raynor, president of the UNITE clothing workers union.

"In a very difficult environment, Levi Strauss tried longer than any other clothing manufacturer to keep production in North America.

"UNITE places the blame for this tragedy squarely at the feet of the Bush administration."