The Italian justice has placed a subsidiary of Dior under judicial surveillance due to allegations of labor exploitation. Investigations into working conditions in the fashion industry in Italy also target Armani and a dozen other couture houses.
“Made in Italy”
More than half (50 to 55%) of luxury products manufactured worldwide are produced by small factories in Italy, mainly in Tuscany or around Milan. But in practice, things are very different from the idyllic image that this description evokes. These are often companies created by Chinese people, who employ migrants (illegally) in sometimes difficult conditions, as Italian inspectors have also discovered.
A branch of LVMH, responsible for the production of Dior handbags, has just been placed under administration by a court in Milan. At four subcontractors of the brand, it was found that some workers (nine out of 32 were not in compliance with their residence permits) had to sleep on site to keep the workshops running 24 hours a day, including at night and on holidays. And this, in poor hygiene and health conditions. Thus, suppliers could charge 53 euros for a handbag sold by Dior for 2,600 euros.
Structural abuses
This year, the Italian justice also placed a Giorgio Armani company under judicial surveillance. This measure allows companies to straighten out their affairs without having to cease their activities. If the company can conclusively prove that it is in compliance, the court will lift the surveillance. LVMH and Armani, however, will not be judged, only the suppliers in question will be accused of exploitation.
Meanwhile, the Italian investigation continues on a dozen other players in the fashion industry. To avoid compromising the investigation, no names are mentioned. After all, abuses are not “something sporadic in individual production parts, but a general and consolidated production method,” according to a document that Reuters was able to consult.