A court in Milan found that Loro Piana had subcontracted its production to two front firms with no manufacturing capacity, which then subcontracted to Chinese-owned workshops in Italy that were found to exploit workers. According to the ruling, the label “culpably failed” to adequately oversee its suppliers in order to increase its profits.
As a result, Loro Piana has been placed under court administration for a year to address shortcomings in its supply chain. An external administrator has been appointed to oversee the brand’s operations during this period.
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Loro Piana is the fifth luxury brand and the second LVMH-owned brand, after Dior, to be found in violation of Italian labour laws since 2023. Other brands found to have allowed illegal and unethical labour conditions to persist throughout their supply chain include Giorgio Armani, Valentino, and the handbag company Alviero Martini.
[…]
The Business & Human Rights Resource Center reports that Chinese workers, including undocumented workers, were subjected to violence, 90 hour workweeks, and EUR4 hourly wage on Italian soil.
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[Edit typo.]
Another report on this issue says:
The [Chinese] tailor’s case shines a light on the treatment of workers who make garments that can cost thousands. He worked from 9 a.m. to 10 p.m. daily through late 2024, when his “caporale,” or boss — also a Chinese transplant — stopped paying him for unknown reasons, according to the court documents.
After repeated demands for his wages, a confrontation ensued. The employer punched the tailor and beat him repeatedly with an aluminum tube, the documents said, leading to a criminal complaint […]
LVMH is Moët Hennessy Louis Vuitton SE, for those wondering.
And also, PSA:
LVMH is owned by Bernard Arnault, the richest man in Europe and the 5th richest in the world, according to Forbes. In many years, he was the richest, ahead of the American tech founders.
I know many people have been bamboozled into thinking that Europe doesn’t have oligarchs. Well, now you know.
I believe that no one should be as rich as the people who top the Forbes 500. But many people on the list have made their wealth through a reasonable contribution to human progress. EG making a well-functioning search engine as Google used to be was a laudable achievement. Luxury clothes are purely extractive.
And the majority shareholder is a fervent extreme right supporter.
Oh really? I had no idea but I’m entirely unsurprised.
And I had the illusion they would pay good wages outside of cheap Labormarkets to justify their high product costs…