Caporalato

Fashion, four investigations in the luxury sector in one year

They uncovered a perverse mechanism of labour exploitation, which the further it moves away from the parent company, the more it becomes nobody's place

by Sara Monaci

3' min read

3' min read

In order to understand why the fashion industry is trying to run for cover and reduce the damage - at least reputational damage - we need to reconstruct what happened in Milan in the space of a year and a half. There have been enquiries into the sector's suppliers in other areas of the country as well, but only in Milan have they pointed straight at the leaders, the big brands, the ones that no one has ever questioned because of the creative value and economic inducement they represent.

On the other hand, the caporalato investigations in Milan have revealed a perverse mechanism of exploitation along the luxury supply chain, which the further it moves away from the parent company, the more it becomes a no-man's land, with no controls and no respect for workers' rights.

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The large companies, however, are never accused of 'caporalato', but of a lack of controls, which is why they have been placed under judicial administration, in order to 'clean up' the chain of producers.

The latest case is that of Valentino Bags, which emerged in mid-May. The mechanism that was brought to light by the investigators - in particular by prosecutor Paolo Storari - is the complete outsourcing of production processes: the contracting company fictitiously has a real production capacity, but in fact only has the 'sampling of the material'. In this way, costs are further reduced 'thanks to the use of irregular and clandestine labour'.

The public prosecutor's office in its investigation emphasises that there is 'an illicit practice that is so deep-rooted and well-tested that it can be included in a broader corporate policy aimed at increasing business'. In other words, we are faced with 'an illicit business policy, a process of organisational decoupling by virtue of which, in parallel with the formal structure of the organisation aimed at complying with institutional rules (codes of ethics, organisational models, which, however, have a merely cosmetic function), another structure is developed, an informal one, aimed at following the rules of efficiency and results'.

Thus, the workers' statements show the absence of contracts, night working hours, unsuitable dormitories and refectories within the company, and the suspension of safety devices. It all started in January 2024 with Alviero Martini, which for twenty years has been part of the holding Final Spa. The company was 'deemed incapable of preventing and curbing labour exploitation within the production cycle'. In particular, the fashion house would have maximised profits by using 'Chinese factories' and 'resorting to illegal and undeclared labour'.

In the spring of last year, two more cases emerged: Armani Operations and Manifactures Dior. The former, which designs and produces clothing and accessories within the Armani group, was placed under judicial administration for alleged labour exploitation. The company allegedly failed to properly supervise the companies to which it subcontracted its production, just like Alviero Martini. Under the spotlight was the chain of subcontractors in favour of illegal factories that used illegal and undeclared Chinese labour, with massacring working hours (we are talking about 14 hours) and very low hourly wages.

With regard to the supplier company Manufactures Dior, the prosecutors emphasised that it did not have an adequate production capacity and, as a result, entrusted the orders to 'Chinese factories, which are able to cut costs by employing illegal and clandestine labour under exploitative conditions'.

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