Italy's fashion brands sign an agreement to combat workers' exploitation

The Italian legal and political authorities, the organizations of the fashion industry and the unions signed an action plan on Monday to combat the exploitation of workers in the clothing chain and accessories, after prosecutors discovered generalized abuse.

Italy represents half of world production in the luxury fashion industry.

The plan, which is not legally binding, is an attempt to address what Milan prosecutors have described in the documents seen by Reuters as “a generalized manufacturing method” that puts life at risk to increase profits.

A first draft of the scheme was proposed by a Milan court in June last year, after prosecutors discovered workshops where poorly paid workers, often irregular immigrants, produced leather bags sold to Dior and Armani for a small fraction of their retail price.

This month, an Italian court placed a Valentino unit under judicial administration for a year, after discovering the abuse of workers in their supply chain.

“The objective is that the court no longer has to intervene,” said Fabio Roia, president of the Milan Judicial System, to journalists outside the memorandum signing.

The comprehension memorandum, reviewed by Reuters, focuses on the creation of a database of brand suppliers and their labor forces.

Supply chain companies will voluntarily enter their data on the platform, including information on fiscal compliance, social security contributions and compliance with the labor law, with updates at least every six months.

According to Monday's agreement, fashion brands must commit to raise awareness about the new platform among their suppliers and urge them to enter their data. However, they can still use suppliers and subcontractors that do not.

The regional Lombardy government, around Milan, will issue companies that will be registered in the scheme with a six -month renewable transparency certificate.