Major luxury brands are under investigation for labor exploitation
Thirteen other luxury brands, such as Gucci, Versace and Yves Saint Laurent, joined the list of companies suspected of using subcontractors in Italy exploiting Chinese workers, according to a document issued yesterday by the Italian judicial system.
In a request for information, the Milan Public Prosecutor indicated that bags, wallets and clothes of these brands were found during raids on Italian workshops that used “Chinese labor in dangerous exploitative conditions.” Yesterday’s action includes brands from the French group Kering (Gucci, Yves Saint Laurent, Alexander McQueen) and Givenchy (LVMH Group), but also local Prada and its new acquisition Versace, as well as Ferragamo, Pinko, Dolce & Gabbana, Missoni, Off-White, leather goods manufacturer Coccinelle, and even sportswear giant Adidas.
The Milan prosecutor asked companies, which still enjoy the presumption of innocence, to quickly submit documentation about their supply chains, such as internal audits.
Other big names have already been named by the Italian judiciary in similar cases: Dior, LVMH’s second brand; Leather goods manufacturers Tod’s and Alviero Martini, as well as a subsidiary of Armani and cashmere specialist Loro Piana (LVMH Group).
Investigations by the Milan Public Prosecutor’s Office revealed a serious lack of oversight of supply chains, as they found underpaid workers and even some sleeping in the workshop to manufacture goods that are then sold for thousands of euros.
Under Italian law, companies can be held liable for violations committed by authorized suppliers. Advocates for fashion workers have reported abuse for decades. The Italian government has gone on the offensive to defend its trademarks. The Minister of Industry and Made in Italy, Adolfo Orso, declared that his reputation was “under attack.” For its part, employers’ organization Confindustria Moda criticized the “sensational media coverage” at “a preliminary point of investigation, which could damage the reputation” of the sector.
At the same time, he stressed his commitment to “firmly fight any form of illegality” in the industry.