Catherwood LibraryILR School

Recent raids in Italy have exposed the exploitation of foreign workers in factories producing luxury handbags for brands like Dior and Armani. Milan prosecutors found these workshops paying a fraction of the retail price for labor, with Dior paying €53 for handbags sold at €2,600 and Armani paying €93 for bags priced at €1,800. The investigation highlighted the inadequate oversight of supply chains by luxury brands, revealing poor working conditions and illegal employment practices. Some workers were paid as little as €2-€3 an hour and subjected to long hours in unsafe environments, living and working in the same facilities. Court rulings criticized the brands for not sufficiently monitoring their supply chains but did not charge them. Instead, suppliers might face charges for worker exploitation. Measures like court administration were imposed on units of Dior and Armani to oversee and rectify these issues. The findings underscore the challenges luxury brands face in ensuring ethical production practices while maintaining the "Made in Italy" label, which is crucial for their market appeal. The situation raises questions about the true cost of luxury goods as well as the responsibility of brands to ensure humane conditions throughout their supply chains.