The Fort Worth Press - Italy's luxury brands shaken by sweatshop probes

USD -
AED 3.672502
AFN 66.374624
ALL 82.891062
AMD 382.105484
ANG 1.790055
AOA 916.999807
ARS 1445.826396
AUD 1.509662
AWG 1.80125
AZN 1.695795
BAM 1.678236
BBD 2.018646
BDT 122.628476
BGN 1.677703
BHD 0.377014
BIF 2961.256275
BMD 1
BND 1.297979
BOB 6.925579
BRL 5.310804
BSD 1.002244
BTN 90.032049
BWP 13.315657
BYN 2.90153
BYR 19600
BZD 2.015729
CAD 1.394875
CDF 2230.000049
CHF 0.80302
CLF 0.023394
CLP 917.730085
CNY 7.07165
CNH 7.067097
COP 3796.99
CRC 491.421364
CUC 1
CUP 26.5
CVE 94.616395
CZK 20.76375
DJF 178.481789
DKK 6.40673
DOP 63.686561
DZD 129.897998
EGP 47.520501
ERN 15
ETB 156.280403
EUR 0.857898
FJD 2.261501
FKP 0.750125
GBP 0.749325
GEL 2.700162
GGP 0.750125
GHS 11.416779
GIP 0.750125
GMD 73.000063
GNF 8709.00892
GTQ 7.677291
GYD 209.68946
HKD 7.78475
HNL 26.389336
HRK 6.462901
HTG 131.282447
HUF 328.445496
IDR 16651.7
ILS 3.235525
IMP 0.750125
INR 89.888095
IQD 1312.956662
IRR 42124.999835
ISK 127.820348
JEP 0.750125
JMD 160.623651
JOD 0.708969
JPY 154.622993
KES 129.250164
KGS 87.45021
KHR 4014.227424
KMF 422.000349
KPW 899.992858
KRW 1470.020022
KWD 0.306802
KYD 0.83526
KZT 506.587952
LAK 21742.171042
LBP 89752.828464
LKR 309.374155
LRD 176.902912
LSL 17.013777
LTL 2.95274
LVL 0.60489
LYD 5.447985
MAD 9.247548
MDL 17.048443
MGA 4457.716053
MKD 52.892165
MMK 2099.902882
MNT 3550.784265
MOP 8.035628
MRU 39.710999
MUR 46.070267
MVR 15.409735
MWK 1737.95151
MXN 18.2142
MYR 4.114026
MZN 63.897023
NAD 17.013777
NGN 1450.250279
NIO 36.881624
NOK 10.095799
NPR 144.049872
NZD 1.732802
OMR 0.384503
PAB 1.002325
PEN 3.37046
PGK 4.251065
PHP 58.991026
PKR 283.139992
PLN 3.631841
PYG 6950.492756
QAR 3.663323
RON 4.367199
RSD 100.707975
RUB 76.00652
RWF 1458.303837
SAR 3.753008
SBD 8.223823
SCR 14.340982
SDG 601.504905
SEK 9.41351
SGD 1.29484
SHP 0.750259
SLE 22.999887
SLL 20969.498139
SOS 571.823287
SRD 38.643498
STD 20697.981008
STN 21.023817
SVC 8.769634
SYP 11056.894377
SZL 17.008825
THB 31.89005
TJS 9.210862
TMT 3.5
TND 2.941946
TOP 2.40776
TRY 42.517902
TTD 6.795179
TWD 31.297984
TZS 2449.999928
UAH 42.259148
UGX 3553.316915
UYU 39.265994
UZS 11939.350775
VES 248.585902
VND 26365
VUV 122.113889
WST 2.800321
XAF 562.862377
XAG 0.017154
XAU 0.000237
XCD 2.70255
XCG 1.806356
XDR 0.70002
XOF 562.867207
XPF 102.334841
YER 238.414547
ZAR 16.960985
ZMK 9001.19956
ZMW 23.026725
ZWL 321.999592
  • BCC

    -2.3000

    74.26

    -3.1%

  • JRI

    0.0500

    13.75

    +0.36%

  • SCS

    -0.1200

    16.23

    -0.74%

  • RBGPF

    0.0000

    78.35

    0%

  • NGG

    -0.5800

    75.91

    -0.76%

  • RYCEF

    0.4600

    14.67

    +3.14%

  • AZN

    -0.8200

    90.03

    -0.91%

  • CMSC

    0.0400

    23.48

    +0.17%

  • RIO

    -0.5500

    73.73

    -0.75%

  • CMSD

    -0.0300

    23.32

    -0.13%

  • VOD

    0.0500

    12.64

    +0.4%

  • GSK

    -0.4000

    48.57

    -0.82%

  • BCE

    0.0400

    23.22

    +0.17%

  • RELX

    0.3500

    40.54

    +0.86%

  • BTI

    0.5300

    58.04

    +0.91%

  • BP

    -0.0100

    37.23

    -0.03%

Italy's luxury brands shaken by sweatshop probes
Italy's luxury brands shaken by sweatshop probes / Photo: © AFP/File

Italy's luxury brands shaken by sweatshop probes

A series of investigations into exploitative work conditions within fashion subcontractors has roiled Italy's luxury industry, with the government decrying attacks on "Made in Italy".

Text size:

Five fashion brands have been put under court administration since 2024 following probes by Milan prosecutors that uncovered worker abuses and a lack of oversight into the supply chains of some of Italy's most respected brands.

Most recently, lawyers for luxury leather company Tod's were due in a Milan court Wednesday, where prosecutors want to impose a temporary advertising ban and outside administrators in light of what they have called "malicious" actions by the company.

The investigations led by prosecutor Paolo Storari have cast a spotlight on the dark underside of the luxury industry.

At issue is the near-ubiquitous practice of brands subcontracting work to suppliers, who in turn contract to others, amid ever-tighter margins and scant oversight of labour conditions.

To date, investigations have targeted Loro Piana, Dior's Italian subsidiary Manufactures Dior, Giorgio Armani Operations and Alviero Martini -- and prosecutors have suggested more probes could come.

Italy's government has gone on the offensive, with Industry Minister Adolfo Urso saying the reputation of Italian brands was "under attack".

It has proposed a certificate for luxury companies to show they are in compliance with current law -- a measure critics have called toothless, in part because it is voluntary and would unduly shield brands from liability.

"We are taking concrete measures to firmly defend Italian fashion, to protect its reputation and the values that have made it synonymous with beauty, quality and authenticity," Urso said in October.

- 'Chain of exploitation' -

Prosecutors last month said Tod's -- whose leather loafers can reach over $1,000 -- and three of its executives had "full awareness" of the exploitation of Chinese subcontractors but failed to set up systems to prevent it.

Tod's allegedly ignored its own audits revealing working hours and wage violations -- with workers paid as little as 2.75 euros per hour -- breaches of safety measures and what prosecutors called "degrading" sleeping areas within the factory.

Under Italian law, companies can be held responsible for offences committed by representatives -- such as approved suppliers -- acting in their interest.

Advocates for fashion industry workers have for decades pointed to widespread abuses in the supply chain.

Suppliers "are at the mercy of big brands that impose commercial conditions, starting with prices that are too low to cover all costs", said Deborah Lucchetti, national coordinator of the Clean Clothes Campaign in Italy.

That, in turn, fuels a system in which first-tier suppliers turn to subcontractors, imposing ever more stringent terms, which leads to labour abuses, most often against migrants.

"It's a chain of exploitation," she told AFP.

Italy's fashion suppliers are predominately small- and medium-sized companies, tens of thousands of whom have shuttered in recent years, according to industry associations, amid a luxury downturn and higher production costs.

Unable to invest, due to lack of guaranteed work from the commissioning brands and hyper-thin margins, the suppliers stay small. When a big order arrives, they turn to subcontractors for quick help, a system that "effectively pushes players in the supply chain to engage in illegal conduct", said Lucchetti.

Prosecutors said both Tod's and Loro Piana could not have been unaware that one of their main suppliers was externalising all its production -- given that the supplier did not have any production equipment, such as sewing machines, in its facility.

The companies targeted thus far have variously responded by cutting ties with the suppliers, condemning their actions, or blaming them for concealing abuses.

- Reputational risk -

Amid the reputational risk, some brands have sought to reassure consumers.

Last week, one of Italy's top luxury brands, Prada, invited journalists to its Scandicci factory outside Florence, showing the step-by-step transformation of supple leather into luxury handbags.

Asked about the investigations, Prada's Chief Marketing Officer Lorenzo Bertelli, who also heads social responsibility, said production had never been an afterthought for the company.

Other fashion executives, Bertelli said, don't view production "as an area of responsibility": "And this has led to many of things you have read in the newspapers."

Prada does not disclose how much of its production is in-house, but says it is the highest in the industry. Prada owns 25 factories, 23 of which are located in Italy.

Bertelli called it a "constant battle" to keep Prada's supply chain clean.

"We must constantly carry out inspections or checks on suppliers, this is the daily work we do."

N.Patterson--TFWP