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Loro Piana Placed Under Court Administration for Worker Abuse
Luxury fashion brand Loro Piana, owned by LVMH, has been placed under court administration for a year after a worker was brutally beaten at a subcontracted workshop for demanding unpaid wages. This shocking incident has brought to light the severe labor exploitation happening in the luxury apparel industry, with workers being paid as little as €4 per hour and forced to work 90-hour weeks.
Broader Issues of Worker Abuse in the Luxury Apparel Industry
This incident at Loro Piana is just one example of the larger problem of worker abuse in the luxury apparel industry. Other well-known brands, such as Armani, Dior, and Valentino, have also faced scrutiny from a Milan court for labor violations, despite Europe’s push for ethical production.
Worker Beaten for Demanding Unpaid Wages
The incident at Loro Piana’s subcontracted jacket workshop, located Northwest of Milan, resulted in the arrest of the facility’s Chinese owner and the immediate closure of the workshop by the Carabinieri police department. The police found that the workshop employed 10 Chinese migrant workers, 5 of whom were undocumented.
Exploitative Working Conditions
The workers at the workshop were forced to work up to 90 hours a week, 7 days a week, for a measly wage of €4 per hour. They were also living in illegal dwellings inside the factory. The Carabinieri police investigated two intermediary companies and three Chinese workshops in Milan, and found that half of the workers were working without proper registration.
Loro Piana Responds to Allegations
In an official statement, Loro Piana acknowledged the notification received from the Court of Milan’s Preventive Measure Section regarding labor practices at one of its suppliers. The brand claims that it was not aware of its supplier’s subcontractors and their labor violations, and immediately terminated all relations with the supplier upon being notified on May 20.
Commitment to Human Rights and Compliance
Loro Piana firmly condemns any illegal practices and reaffirms its commitment to upholding human rights and complying with all applicable regulations throughout its supply chain. However, this incident is just one example of the larger issue of labor exploitation in the globalized apparel industry.
Other Luxury Brands Also Under Scrutiny
Loro Piana is not the only luxury brand to face consequences for labor violations. In the past year, four other luxury labels, including Armani, Dior, and Valentino, have also been placed under court administration by the same Milan court for similar concerns. These brands have since taken steps to address and correct any abuses.
The Disparity Between Worker Wages and Final Price Tags
One of the most shocking aspects of these labor violations is the huge difference between how much garment workers are paid and the final price tag of luxury items. For Loro Piana, a single item can cost over $5,000, while the workers who make them are paid a fraction of that amount.
