In several cases of exploitation, Loro Piana is said to have taken no measures in her supply chain. Now the brand belonging to the luxury goods group LVMH is under judicial administration.
The court in Milan has ordered a one -year judicial administration for the company. The judges’ arrangement: Interior of the Preventive Department concerns an investigation by prosecutor Paolo Storari. The latter found that Loro Piana awarded the production of clothing, including jackets, externally. Their production is said to have been carried out under conditions of the “exploitation of workers”. Storari then had the judicial administration obtained.
According to the investigation by the Milan working group, the company was unable to prevent or contaminate cases of work exploitation in the production cycle. There were no suitable measures to check the actual working conditions and in particular not the technical skills of the contractors: monitored inside. In this way, the exploitation of the workers: on the inside, the Italian newspaper Ansa reports.
Loro Piana commissioned the external company Evergreen to produce certain clothing. Since Evergreen was unable to produce the desired items of clothing, it is said to have further assigned the order to SOR-Man SNC in Nova Milanese, which also did not have sufficient production capacities, according to the investigation.
“Illegal workers in unhealthy and dangerous work environments”
According to the reconstruction of the public prosecutor, the company is said to have contacted Chinese factories in order to reduce costs. These were closed by the military and one of the owners arrested in May. They are said to have dealt with “irregular and illegal workers in unhealthy and dangerous work environments” and “accommodated in illegal dormitories in order to gain workers at any time of the day and night and to expose them to work layers (…), who went far beyond the contractually agreed”, says the judge: Inside.
This system enabled profit maximization by causing the Chinese factory that actually manufactured the goods to reduce labor costs. This happened through the use of “undeclared work” and illegal workers. The health and safety regulations in the workplace were not observed and the national collective agreements in the industry in relation to wages, working hours, breaks and vacation were not observed.
For the court, the ANSA news agency writes, this “mechanism was negligent by Loro Piana. The company has not checked the actual entrepreneurial performance of the contractors: inside and subcontractors: inside (Sor -Man), to whom production was entrusted. check.”
Loro Piana reacts to measures
Loro Piana accepts the notification of the labor practices of not open and non -authorized subcontractors of one of his suppliers from the Department of Preventive Measurable Measurement Court, the brand said on Monday. The supplier violated the legal and contractual obligations to inform Loro Piana about the existence of these subcontractors. The company was made aware of this situation on May 20 and, as a result, ended the business relationship with the supplier concerned within 24 hours.
“Loro Piana suddenly condemns any illegal practices and reaffirms his unshakable commitment to the protection of human rights and compliance with all applicable regulations in his entire supply chain. Loro Piana undertakes to ensure that all of his suppliers keep the highest quality and ethics standards of the house in accordance with his behavioral code. In this sense, Loro Piana has his control And audit activities continuously checked and will further reinforce them, ”said the message. In addition, the company expresses its unrestricted willingness to work together with the responsible authorities on this matter and intend to support the further investigation as best as possible.
Loro Piana has been managed as CEO by Frédéric Arnault, son of LVMH boss Bernard Arnault.
This post was supplemented on July 15 at 12.36 p.m. with a statement by Loro Piana.
This article was used with digital tools translated.
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