Loro Piana belonging to LVMH faces court supervision in Italy for an alleged abuse of work
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The Italian cashmere house Loro Piana, famous for its brand of “silent luxury” under the LVMH Empire, was placed under judicial surveillance on alleged labor abuses in its supply chain involving Chinese unauthorized factories using illegal and sub-paid workers.
An investigation revealed that Loro Piana would have subcontracted production to a bus company that externalized work more to reduce costs. The screen company would have issued false invoices and is said to have engaged in operating work practices, reported Reuters, adding that the brand will now undergo judicial surveillance for a year.
The decision of the Milan Court would have made Loro Piana the fifth high -end brand in Italy to deal with judicial surveillance in an extended repression of the exploitation of workers in the fashion industry.
The fashion brands, including Valentino, Armani, the second brand of LVMH, Dior and the Italian handbag company, Alviero Martini, have already been placed in administration for similar problems, added Reuters.
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Without directly appointing Loro Piana, the paramilitary police of Carabinieri d’Italie said in a statement on Monday that his labor protection unit had executed a “judicial administration” order against a company operating in the haute couture sector.
“It has been determined that the fashion house is subcontracting the production of clothing items (including cashmere jackets) to a company without production capacity, which then externalizes the production process to another company, which, in turn, subcontracts production in Chinese factories to reduce costs,” said Carabinieri order for the protection of work in a press release.
The agency added that these factories have reduced expenses by hiring undocumented workers, often in dangerous and unjust conditions – by paying low wages, ignoring safety regulations and violating labor laws during working hours, breaks and per hour.
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Samples of cashmere fabric are exhibited in a Loro Piana Store in Milan on Tuesday May 10, 2016. (Alessia Pierdonenico / Bloomberg / Getty Images)
Loro Piana said on Tuesday in a statement in Fox Business that a supplier had subcontracted work without information of the company, in violation of legal and contractual obligations. The company said that it had learned the problem on May 20 and “ended all relations with the supplier concerned in less than 24 hours”.
“Loro Piana recognizes today the notification received from the Preventive Measures section of the Milan Court concerning working practices by undisclosed and unauthorized subcontractors of one of its suppliers,” said the company.
“Loro Piana firmly condemns all illegal practices and reaffirms his unwavering commitment to maintaining human rights and complying with all applicable regulations throughout his supply chain,” he added. “Loro Piana undertakes to ensure that all of his suppliers comply with the highest quality and ethical standards of the house in accordance with his code of conduct. In this perspective, Loro Piana has constantly examined and will continue to strengthen his control and audit activities.”
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The survey of luxury power began in May after a Chinese worker said he was physically attacked by his employer after demanding about $ 11,700 in unpaid wages, according to Reuters.
The employer would have beat the worker and caused injuries requiring 45 days of treatment. As a result, Carabinieri police arrested the owner of the Chinese workshop and closed his factory in the northwest suburbs of Milan, said the point of sale.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Lvmue | LVMH Mese Hennesiney Louis Vitton they | 110.93 | -1.20 |
-1.07% |
The Carabinieri police found that the workshop produced Loro Piana brand cashmere jackets and that his workers were forced to work up to 90 hours a week, seven days a week, for about $ 4 an hour, Reuters reported. Police said workers were also sleeping in makeshift rooms illegally built inside the factory, added the point of sale.
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The Carabinieri police said that inspections in several factories in the Milan region have finally found 21 unidentified Chinese workers, 10 of whom were illegally employed and seven were undocumented immigrants in Italy.
Reuters contributed to this report.
