This paper contributes to the growing literature on global value chains/production networks by examining links between economic and social upgrading in a developing country where industry policy and employment legislation have been stringent, focusing on the strategies of local actors involved in global apparel production networks. Five textile and garment firms in Ethiopia were subject to case study research in 2015. The paper finds that employment security and physical well-being were mainly driven by governmental labor regulations negotiated by local employers, workers and unions rather than by global byers (CSR) and recognizes that upgrading and downgrading can occur simultaneously within a firm.