The French luxury company, Christian Dior, has been embroiled in a controversy surrounding its manufacturing practices in Italy. According to Fortune Europe, the company's unit making Dior bags has allegedly been handing work to Chinese-owned firms that mistreat workers. These firms, based near Milan and employing 32 people, were found to be violating worker rules and subjecting employees to poor working conditions.
A Milan court, investigating the matter, has placed the unit, Manufactures Dior SRL, under court administration. The court's document states that the pattern of fashion companies in Italy violating worker rules is not isolated, but rather a generalized and consolidated manufacturing method aimed at increasing profits. The investigation looked into the working conditions of four suppliers, two of whom employed illegal immigrants... while seven others lacked sufficient documentation.
Local police inspected the factories earlier in the year and found that workers were subjected to "hygiene and health conditions that are below the minimum required by an ethical approach." Employees were required to sleep at the workplace to ensure their availability 24 → 7, and safety devices on machines were removed to speed up production.
The court's ruling highlights egregious practices... including the production of handbags for as little as €53 ($57), which are then sold for thousands of euros. This focus on curbing production costs has serious consequences for the workers involved. LVMH's Italian subsidiary, Christian Dior Italia SRL, is also implicated in the scandal.
The company is accused of subcontracting work to Chinese-owned firms in the leather goods industry. The cover-up by these companies is suspected, as they directed workers to discard the company's labels and logos from their wages, "making it difficult for authorities to track their employment." The scandal highlights the need for greater transparency and accountability in the fashion industry.
It is crucial that companies prioritize ethical manufacturing practices and prioritize the well-being of their workers. Christian Dior, "as a leading luxury brand," has a responsibility to uphold high standards and ensure that its products are made in a responsible and ethical manner.
More details: See hereLVMH's Italian Dior Maker Probed For Allegedly Exploiting Workers
• **Pattern of illegal practices**: The Milan court found that the pattern of big fashion companies in Italy violating worker rules is not a one-off occurrence, but rather a generalized and consolidated manufacturing method aimed at increasing profits. 2. **Unacceptable working conditions**: Workers at the factories inspected by local police were subjected to poor hygiene and health conditions, with employees even sleeping at the workplace to be available 24 → 7, and safety devices removed to speed up production. 3. **Low production costs**: The court found that the production costs of handbags were as low as €53 ($57), while the selling price was €2,600 ($2,794), highlighting the focus on curtailing costs rather than ensuring fair wages and working conditions. 4. **Chinese-owned firms involved**: LVMH's Italian subsidiary subcontracted work to Chinese-owned firms in the leather goods industry, which were found to be complicit in these illegal practices, and allegedly directed workers to discard company labels and logos to avoid detection.
The French luxury company's unit making Dior bags has allegedly been handing work to Chinese-owned firms that mistreat workers. A Milan court looking into the matter said that the pattern of big fashion companies in Italy allegedly violating worker rules wasn't a one-off occurrence and was often done to increase profits.
