Exploitation of Employees? Suspicions against Armani and Dior
Armani and Dior advertise with their high production standards. Now, these luxury chains are under suspicion of violating these social and ethical principles. The allegation: They are said to have given orders to companies that exploit their workers to increase profits.
The Italian Antitrust Authority has launched investigations against branches of the luxury fashion conglomerates Armani and Dior due to suspected worker exploitation in their supply chains. The companies had sold products from certain workshops where workers were reportedly underpaid, worked long hours, and had safety regulations violated, according to the Authority.
The investigations began on a Tuesday, and the Authority stated that "in both cases, the companies may have made false statements regarding their ethics and social responsibility, particularly in relation to working conditions and the observance of laws by their suppliers." The investigation will now determine if the companies resorted to illegal labor practices in the production and sale of their expensive goods.
The working conditions in the commissioned factories contradicted the high production standards promoted by Armani and Dior in their advertising. This practice, according to the Authority, violates the Italian Consumer Protection Law.
A previous investigation by the Milan Prosecutor's Office, according to media reports, found that workshops in Italy producing goods for Armani and Dior were exploiting workers to produce the high-end products at a fraction of the retail price. An Armani subsidiary reportedly had an LVMH branch placed under judicial supervision as a result.
- The luxury goods industry in Italy, represented by brands like Armani and Dior, faces criticism for allegedly outsourcing production to workshops where employees are subjected to poor working conditions, including lower wages and long working hours, to boost profits.
- The investigations by the Italian Antitrust Authority could potentially impact thousands of employees in the luxury fashion industry, as they aim to establish whether these prominent brands knowingly breached labor laws and ethical principles in the production of their luxury items.
- If the Italian Antitrust Authority finds substantial evidence of wrongdoing, Armani and Dior may need to re-evaluate their supply chain processes to ensure compliance with labor laws, ethical principles, and consumer protection, protecting the employment rights of their workforce and enhancing the industry's reputation.
