Recently, a scandal has emerged involving an Italian unit of the French luxury brand Dior, highlighting allegations of labor exploitation. The investigation revealed that Dior's Italian subsidiary had outsourced production to Chinese-owned firms, where workers were subjected to harsh conditions. These workers, many of whom were illegal immigrants, were reportedly paid as little as €2 per hour and were forced to live and sleep in the factories to be available at all times. Additionally, safety devices on machines were removed to increase production efficiency, compromising worker safety (AOL.com) (Times Now) (RT).
The cost of producing a Dior handbag at these factories was found to be as low as €53, while the bags were sold for prices up to €2,600. Despite the severe nature of these allegations, Dior itself was not directly charged as the problematic practices occurred at the subcontractor level, and the Italian unit was placed under judicial administration to ensure compliance with legal standards going forward (AOL.com) (RT).
This case has sparked a broader discussion about labor practices in the luxury fashion industry, which often outsources production to reduce costs, sometimes resulting in worker exploitation. The situation raises concerns about the ethical implications of luxury goods production and the responsibility of brands to ensure fair labor practices throughout their supply chains (Times Now).
It's a complex issue that highlights the need for greater transparency and accountability in the fashion industry, especially among luxury brands known for their high markups.
Here's the link to the news articles about the Dior factory situation:
