Luxury brand Dior is under investigation for labor exploitation, after an Italian police query revealed harrowing working conditions in a outsourcing facility, reports local Italian media.
The LVMH unit making Dior bags has been accused of allegedly handing work to Chinese firms that mistreat their workers.
The Milan court which took charge of this case said that this isn’t the first big fashion company in Italy that is allegedly violating their workers’ rights, and that this isn’t a first occurrence.
For instance, Alviero Martini srl and Giorgio Armani Operations srl, two of the most well-known fashion houses, have been under investigation.
Brands usually tend to resort to these practices to maximize their profits to save on labor costs, employee safety, and fiscal procedures.
The investigation looked at four factories where 32 people employees were found of whom two were illegal immigrants and seven others lacked sufficient documentation. In these warehouses, the police found the workers in horrible conditions even described as “Victorian” by NSS magazine.
These practices gave opportunities for the French company to produce a bag at 53 euros and then sell it for 2600 euros.
A few of the most outrageous practices discovered were that workers were obliged to sleep at their factories to ensure that they were available 24 hours a day alongside the fact that safety devices were being removed from machines so that the operation could go faster and produce even more pieces.
The fines imposed amount to 138,000 euros, with administrative sanctions totaling 68,500 euros and the suspension of activity for the four subcontracting companies.
This investigation isn’t a good look for the luxury brand led by Delphine Arnault as it is shedding a bad light on the practices and values of the brand.
However, LVMH representatives didn’t wish to comment on this issue for either the magazine Fortune or the business of fashion.
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