The investigation conducted by the Milan Public Prosecutor’s Office risks spreading to dozens of other fashion brands, after the court yesterday placed Manufactures Dior, the operator of the Italian branch of the fashion house LVMH, under controlled management. The investigation conducted by prosecutors Paolo Storari and Luisa Baima Bologni revealed phenomena of exploitation and gang mastery in the bags and leather goods factories of Italian suppliers which the company was unable to prevent.
Inspections and controls on electricity use at LVMH supplier factories in Italy have revealed how workers are employed for long hours, with shifts often ending late at night and on public holidays. Employees have also been found sleeping in the same factories, without regular contracts. There were also two foreign workers in Italy illegally. In April, a Milan court also imposed management of a company owned by Giorgio Armani. Even then, the group was accused of negligently monitoring the activities of suppliers who were allegedly exploiting employees. Violations about which Armani tried to reduce these accusations.
The investigation by the Milan Public Prosecutor’s Office targeted other small producers supplying around ten fashion brands, according to the Milan Public Prosecutor’s Office.Reuters Quoting a source familiar with the investigation. The investigation does not directly include LVMH and Armani, but rather their suppliers are accused of exploiting workers in “Made in Italy” production. The foreign workers were mainly brought to Italy by a recruitment company, which, according to a ten-year investigation by the Milan Public Prosecutor’s Office, would hire workers illegally, evading taxes and social security contributions, in order to keep costs low.
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