Probe Into Alleged Labour Exploitation Reaches Chanel and Moncler

Italian police are knocking on the doors of some of fashion's biggest luxury names.

Authorities have requested supply chain and internal company records from 9 brands as part of an investigation into alleged labour exploitation at subcontracted workshops.

Some of the big names are Chanel, Moncler, Bulgari, Etro and Brunello Cucinelli.

But none of these brands are currently under investigation.

The Investigation Began With Two Workshops

Police had previously searched two Chinese owned workshops accused of exploiting undocumented Chinese workers.

They reportedly found products and subcontracting documents connected to several luxury brands. The workshops were making garment bags and shopping bags through suppliers that worked directly with the brands.

Police want to examine how these companies manage suppliers, check subcontractors and what happens further down their supply chains. 

However, requesting documents does not mean the brands have been found guilty or placed under formal investigation.

Chanel Says It Had Already Cut Ties

Chanel said it received an alert about possible labour abuse, and two days later, it instructed its packaging supplier to end its relationship with the subcontractor.

The company says it is fully cooperating with authorities and that it had already begun ending the relationship before the investigation became public.

Brunello Cucinelli also said it was surprised that packaging materials intended for the company had been found in an unsuitable workplace despite its supplier checks.

This Is Bigger Than One Police Visit

Earlier investigations produced even more disturbing examples. Police said workers at a subcontracted workshop connected to Loro Piana worked up to 90 hours a week for just €4 an hour.

In another case, court documents showed that Dior paid a supplier €53 to assemble a handbag later sold for around €2,600.

No brand, fast fashion or luxury, should be allowed to hide its supply chain. In no world should €4 an hour be acceptable. It is indefensible, and working such long hours is not okay.