Italian law enforcement officials on Thursday raided the offices of several luxury brands over allegations their subcontractors are employing Chinese sweatshops.
The raids are reportedly part of a broader investigation by Milan authorities involving the luxury brands’ subcontractors — leading to allegations of labor exploitation and employment of illegal Chinese migrant workers in Italy.
The Italian newspaper Il Sole 24 Ore reports that Thursday’s raids were conducted by officials of the Carabinieri gendarmerie’s Labor Protection Unit, acting on the instructions of Milan’s Public Prosecutor Paolo Storari.
Per Il Sole, the prosecutors allege that major luxury brands reportedly employ “front” companies for their supplies. The companies then turn to Chinese sweatshops lacking proper hygiene, safety standards, and workers’ rights, paying bellow standard wages to the exploited workers.
The investigations are reportedly focused on the supply chains and production of luxury bags and accessories of at least eleven brands — Owenscorp Italia; Chanel; Brunello Cucinelli; Goyard Italie; Moncler; Stefano Ricci; Bulgari; Jacob Cohen Company; Etro; F.Vl; and Brandart.
All targeted companies, Il Sole reported, had turned to manufacturers Moda Fashion Style and Isacco. In May, officials raided their facilities and reportedly found evidence that the companies employed illegal Chinese workers lacking residence permits in addition to other workplace irregularities. According to Rai News, the illegal Chinese workers were being paid off the books “on a piecework basis.”
Products from the eleven luxury brands targeted on Thursday were reportedly found at the Moda Fashion Style and Isacco factories during May’s raid.
Furthermore, machinery lacking safety mechanisms, labels that read “Made in Albania,” and evidence that the workers were subjected to degrading living conditions was also documented by the investigators. An inspection of the factories’ electricity consumption patterns reportedly suggests long operational hours — even during public holidays.
According to Il Sole, other similar high-profile cases involving Armani Operations, Valentino Bags, Loro Piana, Dior, Alviero Martini, and Tod’s “have been resolved, or are currently being resolved” by cleaning up the supply chains from any irregularities with the assistance of a court-appointed commissioner.
A similar raid occurred in December against another group of luxury brands over allegations of worker exploitation by their corresponding subcontractors. At the time, Reuters reported that 13 luxury brands were visited by Italian police officers in search for documentation, including Prada, Dolce & Gabbana, Adidas Italy, Gucci, and Yves Saint Laurent. None of the brands were placed under investigation according to Reuters.
