The investigation by the Milan prosecutor’s office risks spreading to another dozen fashion brands, after yesterday the court placed Manufactures Dior, the operating company of the Italian branch of the LVMH fashion house, under controlled administration. The investigation by prosecutors Paolo Storari and Luisa Baima Bollone revealed alleged exploitation and gang-mastering phenomena in the bag and leather goods factories of Italian suppliers that the company would not have been able to prevent.
Inspections and controls on the use of electricity in the factories of LVMH suppliers in Italy revealed how workers were employed for long hours, with shifts that often ended late at night and on public holidays. Employees were also found sleeping in the same factories, without regular contracts. Two foreign workers were also illegally in Italy. In April the Milan court had also imposed the administration of a company owned by Giorgio Armani. Even in that case, the group was accused of having negligently failed to monitor the activities of suppliers who allegedly exploited employees. Abuses on which Armani had tried to minimize the accusations.
The investigation by the Milan prosecutor’s office has targeted other small producers who supply around ten fashion brands, according to the Reuters agency which cites a source informed of the investigation. The investigation does not directly involve LVMH and Armani, but their suppliers accused of exploiting workers in the production of “Made in Italy”. Mainly foreign workers brought to Italy by a recruitment company, which according to a ten-year investigation by the Milan prosecutor’s office would have illegally hired workers, evading taxes and social security contributions, so as to keep costs low.
