Italian police revealed on Friday that exploited Chinese workers, employed in Italy by an unauthorized subcontractor, were involved in the production of handbags and accessories for the Giorgio Armani fashion house. The in-house production company, GA Operations, was found to have failed in properly monitoring the supply chain abuses. The fashion house denied any wrongdoing but stated that they would collaborate transparently with authorities to clarify the situation. The workers, hired under the table by unauthorized Chinese subcontractors, were found to be working in violation of health and safety regulations as well as working hour laws.
The police investigation uncovered a system of caporalato, which involves the illegal intermediation and exploitation of workers, typically seen in the agricultural sector. While GA Operations is not under investigation, it has been placed under judicial administration to ensure legal operations. The police also revealed that the subcontractors were paid significantly lower amounts for the products compared to the prices at which the fashion house sold them. This discrepancy in payment allowed for the Chinese factory to maximize profits by utilizing off-the-books and illegal workers to lower labor costs.
A video released by the carabinieri showed the disturbing working conditions in the factory where leather goods were being made. The workers were found to be living in squalid conditions with cramped dormitories and unsanitary bathrooms. The investigation is part of a larger probe into the fashion supply chain operating in the Milan and Bergamo provinces. In a separate case, police investigated four illegally operating factories with unhealthy working conditions and safety violations. The factories were ordered to close, and the Chinese owners are facing a criminal investigation along with fines and administrative sanctions totaling 145,000 euros.
The findings highlight the exploitation of vulnerable workers in the fashion industry supply chain and raise concerns about the oversight and monitoring of subcontractors. The fashion industry has come under scrutiny in recent years for its reliance on cheap labor and unethical practices in the production process. The revelations from this investigation shed light on the need for stricter regulations and enforcement to ensure that workers are not subjected to exploitation and abuse in the pursuit of profit. The Giorgio Armani fashion house’s denial of wrongdoing emphasizes the importance of transparency and accountability in the supply chain to prevent such abuses from occurring in the future.
