Dior
Prosecutors in Milan have accused Dior and Armani of exploiting labor in their luxury handbag production. According to The Wall Street Journal, Milan prosecutors found that workshops making handbags and leather goods for these brands paid migrant workers as little as $2 an hour.
Prosecutors revealed that Dior paid a supplier just $57 to produce handbags that sell for $2,780. Similarly, Armani sold bags to a supplier for $100, which retail for around $1,950. “Why does it cost so little to manufacture the product?” asked Fabio Roia, who is leading the investigation. “The brands need to ask themselves this question.”
Dior has yet to comment on the investigation, but Armani stated that it has “control and prevention measures in place to minimize abuses in the supply chain” and will cooperate with authorities.
During a raid at one facility, prosecutors reported that three illegal immigrant workers tried to escape but were caught by authorities. Inspectors found that many workers were subjected to “hygiene and health conditions below the minimum required by an ethical approach.”
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