Italian police: Giorgio Armani bags produced by exploited Chinese workers near Milan
The fashion house denied wrongdoing by GA Operations, which produces apparel, accessories and home decor for the Giorgio Armani Group brands
Exploited Chinese workers employed in Italy by an unauthorised subcontractor made handbags and accessories for the Giorgio Armani fashion house in a series of supply chain abuses that the in-house production company failed to properly monitor, Italian police said Friday.
The fashion house denied wrongdoing by GA Operations, which produces apparel, accessories and home decor for the Giorgio Armani Group brands.
According to police, GA Operations hired a subcontractor, which in turn hired unauthorised Chinese subcontractors that employed workers under the table, some of whom were in Italy illegally.
They allegedly disregarded health and safety regulations as well as rules governing working hours, breaks and days off.
Police said it was part of a system of caporalato, the illegal intermediation and exploitation of workers most often associated with the agricultural sector. Four Chinese factory owners face a separate criminal investigation for their role.
GA Operations, meanwhile, is not under investigation, but has been placed under judicial administration for up to a year as part of a procedure to ensure legal operations, said Carabinieri Lt. Col. Loris Baldassarre.
A diagram released by police indicated that the Chinese subcontractor was paid 93 euros ($100) for a handbag that the fashion house sold for around 1,800 euros (around $1950).
The authorised subcontractor, acting as the middleman but without real production capabilities, was paid 250 euros for the same bag, pocketing 157 euros for each bag, police said.
