An Italian investigation has revealed disturbing practices behind the luxury brand Dior, exposing that its handbags, sold for $2,780 in stores, are produced for only $57. This revelation has brought to light the harsh realities of the production process for these high-end products.
Dior’s handbags are often seen as symbols of fine craftsmanship and luxury, desired by many for the status they confer. However, an investigation by Italian authorities has uncovered troubling truths about the production of these bags. A raid by Italian police on Dior’s production units has exposed severe labor abuses and unethical manufacturing practices.
Owned by LVMH, Dior was found to produce their bags at an astonishingly low cost, while selling them at exorbitant prices. Workers at Dior’s third-party suppliers faced brutal working conditions, forced to work non-stop under harsh conditions. The investigation revealed that workers, many of whom were Chinese illegal immigrants, were subjected to inhumane conditions, including sleeping in sleeping bags and working without breaks. Safety devices on machinery were removed to speed up production, further endangering workers’ lives.
The investigation also implicated another luxury brand, Armani, which was found to be paying $99 per bag to contractors while retailing them for over $1,900.
The Milan judiciary has responded to these findings by placing the production units of both Dior and Armani under judicial administration for one year. This move aims to address the rampant violations of labor laws uncovered in the factories of these luxury brands. The prosecution emphasized that these violations were not isolated incidents but part of a broader strategy by the brands to maximize profits at the expense of workers’ health, safety, and fair compensation.
“The mistreatment of laborers was a key factor in this judicial order,” stated the prosecution, highlighting the need to prioritize the well-being of workers over corporate profits. The judicial administration order is intended to ensure that the brands comply with labor standards and improve conditions for their workers.
