Loro Piana Faces Judicial Administration Over Labor Exploitation Issues
Loro Piana, a subsidiary of LVMH, is placed under judicial administration due to serious labor violations.
Key Points
- • Loro Piana placed under 'judicial administration' by Milan court.
- • Investigations reveal exploitation of workers and unsafe conditions.
- • Total fines exceed €181,000 for Loro Piana, with €60,000 in administrative sanctions.
- • Case echoes previous labor exploitation issues in the luxury sector.
Loro Piana, the renowned Italian fashion house owned by LVMH, has been placed under judicial administration by the Milan court due to negligence concerning the exploitation of workers at its subcontractors. This decision follows an investigation prompted by a complaint from a Chinese worker regarding unpaid wages, which revealed significant labor violations including the use of illegal workers and unsafe living conditions in dormitories.
The court's action is preventative, aiming to keep the company away from criminal activities associated with labor abuse. Investigators found that Loro Piana failed to implement adequate oversight to monitor labor conditions, allowing for severe labor infractions. Consequently, the company has been fined a total of over €181,000, along with additional administrative sanctions totaling €60,000. Two Chinese workshops connected to the brand have been closed for serious safety violations and the employment of undocumented workers.
This case has drawn parallels with other luxury brands in Italy, notably Dior, which has faced similar accusations of labor exploitation and was recently ordered to pay compensations for its practices. The upcoming year will be critical for Loro Piana as it seeks to rectify these issues under court supervision.