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Dior comes under fire for labour conditions

A recent investigation into factories in Italy found the luxury brand guilty of exploiting contractors.

Like most luxury fashion brands, Dior is renowned for their elegance and meticulous craftsmanship.

The company has long prided themselves on the savoir faire required to make their products – particularly their handbags, widely considered Dior’s most coveted pieces.

A recent investigation by the Comando Carabinieri per la Tutela del Lavoro, however, has threatened to dismantle the polished facade Dior takes painstaking efforts to sustain.

The Italian government agency for workers protections has revealed, after observing working practices in Italian factories, that the subcontractors who manufacture Dior bags are subject to sub-par conditions.

The allegations have triggered an Italian court to place the workers unit, called Manufactures Dior SRL and fully owned by Christian Dior Italia SRL, under court administration on Monday. According to reports, the pattern of big fashion companies in Italy violating workers’ rights isn’t a one-off, and is often done to increase profits.

Dior has long been synonymous with luxury and exclusivity, its reputation staunchly built on quality craftsmanship. Suggestions of lacklustre working conditions, however, reveals a troubling dissonance between high-end fashion’s public image and its internal operations.

The investigation found that subcontractors hired to make Dior’s bags often slept at the workers’ facility to ensure they were available for service ‘24 hours a day’.

Safety devices on machines were also removed so operations could go faster, thus curbing production costs down to as little as €53 ($57) for a handbag that’s otherwise sold at €2,600 ($2,794).

This is the third legal pursuit by the Milan court in charge of pre-emptive measures, which in April named a commissioner to run a company owned by Giorgio Armani – following accusations the fashion group was ‘culpably failing’ to adequately oversee its suppliers.

Despite legal action delving into suppliers rather than Dior directly, the probe isn’t a good look for such a high-profile brand, which is currently headed by Delphine Arnoult, the daughter of LVMH CEO Bernard Arnault.

It was also reported that Dior did not take appropriate measures to check the working conditions of the contracting companies by ‘not carrying out periodic supplier audits’.

The findings cast a spotlight on the luxury industry and Italian supply chains – the same production process that high-end brands have long used to burnish their image. For companies like Dior and Armani, ‘Made in Italy’ has become a shorthand for quality, craftsmanship, and ethical manufacturing.

But the reports that workers are subject to minimum pay, gruelling hours, and unsafe working conditions suggests factories in Italy are operating as little more than sweatshops.

Milan prosecutors and Italian police are still investigating manufacturers linked to around a dozen more fashion brands, according to Reuters.

As sustainability advisor Caterina Ochio wrote for the Business of Fashion this week, this is a scandal that exposes ‘the myth of ethical luxury’.

The court’s decision to place the Dior unit under administration sends the message that even the most prestigious fashion houses are not above the law, nor can consumers avoid supporting workers’ exploitation simply by shopping high-end.

As you’d expect, the whole scenario has triggered immense backlash from Dior’s consumers and the wider fashion industry.

Social media users have called out luxury fashion, calling the findings ‘disgusting’. Some have also argued that the gap between high-end and fast fashion – which is marketed as a vast chasm – is actually much smaller than we’d like to believe.

‘If you think you’re doing good because you don’t shop at Shein think again!’ said one Instagram comment. ‘It’s all fast fashion! We need to stop buying so much (myself included)’.

Others called out the fashion industry for what they believed to be a long-term, insidious issue.

‘This is not an isolated incident. It’s systematic and it’s been going on for decades, and the industry has always known’.

‘All about money, always was always will be.’

It’s certainly true that this scandal does not just pose a problem for Dior; it reflects a systemic issue within the industry. Many luxury brands outsource production to subcontractors in countries with lax labour laws, allowing them to minimise cost at the expense of workers’ rights.

The Dior scandal again highlights the need for greater accountability and transparency in the fashion industry. Brands must be held responsible for the conditions under which their products are made, and consumers have to be informed about the true cost of their purchases.

As for Dior, itself, its response to the crisis will not only impact its reputation, but it could serve to kickstart an industry-wide reckoning for high-end fashion.

We certainly hope the latter comes to pass.

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