Paris-based luxury company LVMH’s (LVMUY) Italian subsidiary Dior is under investigation for exploitation of workers by Chinese companies to which it has outsourced work. A court in Milan is probing the labor exploitation and said that many major fashion companies have allegedly violated rules to increase profits. Many web fans were appalled by the news.
Reuters reported on Monday that the court had placed the unit called Manufactures Dior under its administration for a year.
The outlet viewed the document that said, “It’s not something sporadic that concerns single production lots, but a generalized and consolidated manufacturing method.”
The investigation into Dior focused on four Chinese suppliers. They employed 32 workers, of whom two were illegally employed in the country, while seven did not have proper documentation.
The document also mentioned that the workers apparently slept at their workplace under “hygienic and health conditions” that remained “below what an ethical approach would require.”
It also said that the Dior unit did not take “appropriate measures to verify the actual working conditions or the technical capabilities of the contracting companies,” which were Chinese companies.
Other luxury fashion houses investigated include Giorgio Armani, which was investigated earlier this year, in April. A Milanese court found that they underpaid workers, and the company was placed under the court’s administration.
In 2021, Inditex, parent of Uniqlo and Zara was investigated by France for forced labor practices that were linked to the minority Uyghur community in China.
Swedish H& M was also investigated for forced labor practices in Myanmar. After the investigations, H&M closed its operations in that country.
Christian Dior is headed by Delphine Arnault, Bernard Arnault’s oldest child. Neither she nor LVMH representatives have responded when asked for comment. Dior is said to be the second-biggest fashion label of parent company LVMH.
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