MILAN (dpa-AFX) — Several major names in the fashion industry in Italy have come under investigation over possible exploitation of workers in subcontracted companies. The Milan public prosecutor's office is demanding detailed information from luxury brands such as Armani, Prada, and Gucci regarding their supply chains. The inquiry centers on suspicions that these corporations outsource the production of expensive clothing to other firms that employ workers under precarious conditions and at low wages.
The Milan prosecutor's office — located in a city where many renowned "Made in Italy" brands are based — has requested a total of 13 companies to submit all necessary documentation, particularly concerning their monitoring systems for awarding contracts. According to authorities, other companies involved include Dolce & Gabbana, Ferragamo, Missoni, and Adidas Italy. The investigations focus exclusively on working conditions within the subcontracted companies, not within the brands themselves.
Longstanding Criticism from Unions
In Italy, unions have long accused luxury brands of having their products manufactured by smaller firms that systematically violate labor laws. Critics refer to this as "Made in Misery." Repeated abuses have been uncovered in various Italian cities, often in factories operated by Chinese owners.
Allegations range from employing foreign workers without residence permits — many from Asia — to paying poverty wages and imposing near round-the-clock work schedules. In one documented case, a handbag was produced for a well-known brand by a subcontractor for 53 euros, while the retail price was 2,600 euros.
Government Plans New Certification System
Luxury brands Loro Piana and Tod's have already been placed under judicial supervision due to such allegations. There are growing concerns that these issues could damage the reputation of the entire Italian fashion industry. Prime Minister Giorgia Meloni's government has announced plans to develop a new certification system for the awarding of contracts./cs/DP/men
