Italy’s luxury fashion industry is known worldwide for its high-quality craftsmanship and prestige. However, behind the iconic “Made in Italy” label, there’s a hidden side of the story. Many workers involved in creating luxury goods for brands like Dior, Armani, and Montblanc are migrant laborers, often subjected to harsh working conditions, long hours, and unfair wages.

Migrant Workers in Tuscany and Milan

In regions like Prato and Milan, the production of luxury goods often involves undocumented migrant workers from countries such as Pakistan, China, and Bangladesh. These workers, hired by contractors and subcontractors, endure long hours for very low wages. Many, like Abbas from Pakistan, work up to 14 hours a day, dyeing leather for luxury handbags, often through physical pain with minimal breaks.

The Role of Subcontractors

Luxury brands rely heavily on a vast network of subcontractors to manufacture their products. While this allows flexibility, it reduces oversight of working conditions. Many subcontractors hire undocumented migrants, offering them less than minimum wage. For example, Montblanc ended its relationship with a supplier after workers’ conditions improved, likely due to increased costs.

Legal Scrutiny and Investigations

Italian authorities are cracking down on unethical practices. Companies like Giorgio Armani Operations, Alviero Martini, and Dior’s manufacturer have been placed under judicial administration to improve labor conditions. Prosecutors continue investigating other brands as well, pushing them to strengthen audits and gain more control over their supply chains.

Exploitation and Profit

The luxury fashion industry thrives on exclusivity and high profits. However, this often comes at the expense of the workers at the bottom of the supply chain. Contractors have been known to charge as little as €53 for a handbag that sells for over €2,600, a glaring indicator of the exploitation involved.

Moving Forward

As investigations continue, there’s hope that luxury brands will be held accountable for fair treatment throughout their supply chains. The Milan court’s recent proposals call for stricter rules and more transparency, stressing the urgent need for ethical practices in the industry. Brands must address these issues to ensure that the glamour of “Made in Italy” no longer hides such exploitation.

Luxury companies face growing reputational risks, and as consumers become more aware, compliance with legal regulations on ethical sourcing and improved working conditions is essential for long-term success.

References:

Italy: Italian Competition Authority – Investigation launched for alleged unfair commercial practice against luxury companies. Global Compliance News, August 2024.

Italian prosecutors probe supply chain of luxury fashion brands. Reuters, June 2024.

How migrant workers suffered in crafting luxury Italian labels. Reuters, September 2024.