Following an investigation into abusive practices at workshops producing its leather goods, the Italian competition authority ruled that Dior had not committed any offense. However, the flagship brand of the LVMH group will have to provide €2 million in financial support to the victims and select and monitor its suppliers more strictly.
In Italy, working conditions are not taken lightly…
The lesson has been learned loud and clear by Dior, the flagship brand of the LVMH group. It has finally been “cleared” by the Italian competition authority (AGCM), which last year launched an investigation into its Italian subsidiary and Armani after discovering workshops producing leather goods for them in illegal conditions (insufficient wages, working hours exceeding the legal maximum, etc.). These workshops employed workers who were themselves generally illegal immigrants.
Special administration regime
The AGCM also suspected Dior and Armani of issuing misleading statements on social and ethical responsibility, particularly regarding working conditions and their suppliers’ compliance with legislation.
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Read also > Italy: Armani and Dior under scrutiny by authorities for subcontracting that violates employee rights
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