Behind Dior and Armani is a system on the brink of slavery.
Dior and Armani are two of the most well-known fashion brands in the world. However, it seems that the production of their luxury products is far from luxurious. The companies are alleged to have exploited workers in deplorable conditions in their workshops. These fashion brands are not the only ones under investigation.
When asked, "Is this all really 'made in Italy'?" the salesperson at Dior in Milan's most prestigious address for fashion items on Via Monte Napoleone replies with a "of course!" - and they're not lying. However, this is only half the truth.
The "PO312YKY" bag from the Christian Dior brand costs 2600 euros in the store and was indeed made in Italy. Specifically, in Opera, a suburb in the south of Milan. The materials and leather, as proven by transport documents, come from Italian yarn manufacturers and tanneries. All truly "made in Italy". Italian Prime Minister Giorgia Meloni could be proud of this luxury production in her country. If only there wasn't the investigation report from the Milanese Carabinieri's "Labor Protection" department.
Two Milanese prosecutors, Paolo Storari and Luisa Baima Bollone, had looked into the working conditions in a series of factories in southern Milan. For this purpose, they sent the Carabinieri of the Labor Protection to the places where, among others for Dior and Armani, but also for other top fashion labels, the most expensive leather goods were produced.
On March 21, 2024, the Carabinieri visited, among others, a company that produced the Dior "PO312YKY" bag. The intricate system of the production chain via subcontractors is described in detail in the 97 pages of the court decisions. And this is how it works: On paper, the Italian branch of the LVMH group, "Christian Dior Srl", buys the bag from the Dior subsidiary "Dior Manufactures Srl". However, the bags are not produced there, but only purchased and billed to the parent company. In reality, the production is passed on via further Italian subcontractors to the lowest link in the supply and production chain, such as to the company "Pelletteria Elisabetta Yang Srl". The company belongs to the Chinese entrepreneur Yang Xiao Wen, who has her regular residence in Italy.
Hygienic conditions catastrophic
In Opera near Milan, the Carabinieri found out: Here, the expensive bags were really produced in a three-story apartment block on the outskirts. When they surrounded the building, a person tried to escape over the wall. The man was held, and indeed he was an illegal immigrant.
In the factory rooms of the Yang company, the Carabinieri found 23 people. Of them, 17 were Chinese, 5 came from the Philippines. Almost all of them live and work directly in the factory. The Carabinieri counted seven bedrooms, they found a kitchen and common rooms. In the report, it is stated: "The hygienic conditions in the sanitary facilities did not even meet the minimum health standards".
Even worse, the Carabinieri found that on the "sewing and cutting machines, the safety profiles had been removed, and on two devices, the fire protection did not work". The safety protection had been removed for a simple reason: it increases the productive output of the workers on the machines. The price is the endangerment of one's own health. Also, the "color and adhesive substances were stored in completely unsuitable containers and rooms without any safety measures".
From the seized documents at the subcontractors Yang and "New Leather", it was clear that they had obtained their raw materials, fabrics, leather, and accessories from Dior's supplier companies in Italy. Dior was billed 53 euros for the finished bags. Allegedly, the employees there only worked part-time. However, the Carabinieri were able to prove that the machines were running continuously from 6:30 AM to 9:15 PM, six days a week, indicating full-time operation.
The situation in Opera is not an isolated case. The Carabinieri of "Labor Protection" found similar conditions at six other workshops, all in the southern suburbs of Milan. At the end of the production chain, companies owned by Chinese nationals are involved. In many cases, only Chinese workers, often illegal immigrants, are employed.
Another finding of the investigation is that many subcontractors may have been evading taxes on a large scale. Sub-sub-suppliers only existed on paper and were closed before the tax office could inquire. It's a real jungle of illegality, the deeper the investigation goes.
Legal Action is Tough Stuff
Dior and Giorgio Armani were the two well-known fashion brands at the center of the investigation. However, investigations are also underway against the lesser-known brand Alviero Martini. Although Giorgio Armani, who is 89 years old, is not personally under investigation, he had expensive blue leather bags made for his brand by Chinese sub-subcontractors "Pelletterie Gold di Chen Xiulin", "Pelletteria Giulio di Lu Shenjao", and "Wu Cai Ju" in the Milan outskirts.
At the subcontractor Wu Cai Ju, who claimed to only work for Armani, the Carabinieri seized 139 Giorgio Armani brand leather handbags, as well as 206 pieces of beige and gray belts. Employee Dong Wen Tie stated that the Chinese company sews Armani bags together for 75 euros each. Owner Wai Cai Ju stated that he had produced about 1000 handbags for Armani since March 23. They were then sold to Armani for 35 to 70 euros per bag, which were hardly available in stores for less than 1000 euros.
The court of Milan is taking the investigation very seriously and has placed the three affected companies under a so-called judicial administration for one year. This step is remarkable because it is the usual instrument used to bring mafia-controlled companies back into legal waters. Here, one of the harshest legal instruments is being used against fashion brands to prevent "criminal behavior".
For the clean image of fashion companies, this is tough stuff. After all, they have set strict guidelines for production conditions for themselves. According to the court, the judicial administration is not intended to punish the companies as part of a criminal organization, but to prevent healthy companies from being infiltrated by crime. Instead, it aims to ensure that "criminal behavior is prevented in the future".
Six Days a Week, Working for 600 Euros Gross per Month
And where did the court see such criminal behavior? Dior and Armani, according to the investigation by the Carabinieri, have exploited people in often illegal workshops south of Milan under completely deplorable conditions. The public prosecutor describes the situation found with clear words. There is a "downstream production chain in which the actual business consists of significantly compressed mass production costs compared to those that would arise from the correct application of collective agreements and labor protection regulations."
Through the use of, among other things, illegal and unregistered labor, neglecting to inform employees about the risks of the work, and non-standard machines with safety devices deliberately removed to increase productivity at the expense of employee safety, profit margins were ultimately achieved.
The Mailander investigators' findings indicate that these practices were not devised by the lowest subcontractors. "The situation discovered is undoubtedly facilitated by a superficial assessment of the risk factors of the commissioned fashion firms," the Mailander public prosecutors are certain.
The words of the public prosecutor are still mild. Lack of control by the principals is cited as the cause. However, another suspicion is close at hand: everyone knew, from top to bottom. Behind the shiny facade of "made in Italy" fashion, investigators found a system on the brink of slavery. Interrogated workers stated that they worked six days a week for 600 euros gross per month.
Such working conditions are unfortunately not new in Italy, especially in agriculture, where tens of thousands of migrants work under appalling conditions. An exploitation system that is also facilitated in Italy because the country does not have a minimum wage. The Meloni government is strongly resisting the introduction of a minimum wage demanded by the opposition.
Apparently, another 13 fashion labels are under investigation
Dior has not yet commented publicly on the allegations, but will fully cooperate with the court, according to court circles. Armani, on the other hand, stated in a message: "We have learned of the precautionary measure taken by the Milan courts against Giorgio Armani (GA) Operations." The company has always taken control and preventive measures to minimize abuses in the supply chain. "GA Operations will work with the utmost transparency with the competent authorities to clarify its position in this matter," Armani writes.
In addition to the forced administration, Dior and Armani face further trouble. The Italian anti-trust authority has announced that it has opened investigations against the two companies for "illegal advertising promises." The accusation: they have deceived consumers with false statements about working conditions and the legal situation with suppliers.
According to Italian media reports, investigations into working conditions in the Italian fashion world are continuing. Apparently, another 13 fashion labels are under investigation: Zara, Diesel, Hugo Boss, Hugo Boss Orange, Trussardi, Versace, Tommy Hilfiger, Gianfranco Ferré, Dolce & Gabbana, Marlboro e Marlboro Classic, Replay, Levis.
The investigation into labor conditions in Milan's fashion industry also implicates brands beyond Dior and Armani. It has been reported that Zara, Diesel, Hugo Boss, Hugo Boss Orange, Trussardi, Versace, Tommy Hilfiger, Gianfranco Ferré, Dolce & Gabbana, Marlboro and Marlboro Classic, Replay, and Levis are under investigation as well.
Despite the allegations of exploitation and poor working conditions, Giorgio Armani's company has maintained that they take control and preventive measures to minimize abuses in their supply chain and will work with transparency to clarify their position with the authorities.
