If you think Italian luxury clothes are hand sewn by skilled workers, you are right. If you think their craftsmanship is well compensated, think again.
This New York Times investigation paints a bleak description of the working conditions of Italians working for MaxMara, Fendi, Gucci, and Louis Vuitton. Most luxury brands outsource a major portion of their manufacturing. Several factors including intense competition from abroad result in the exploitation of labor, and the multi-tiered supply chain hinders transparency.
Video Spotlight: Made in Bulgaria: Luxury Fashion Brands Move East
This post is based on the New York Times article, Inside Italy’s Shadow Economy, by E. Paton and M. Lazazzera, September 20, 2018, and the Reuters video, Made in Bulgaria: Luxury Fashion Brands Move East, by T. Tsolova and M. Kahn, June 7, 2018. Image source: Shutterstock / Nenad Aksic
1. What are the reasons for the “sweatshop wages” given to the Italian seamstresses making the luxury garments at home?
Guidance: Reasons include high unemployment in the region, intensive competition from Asian and Eastern European labor, contractors’ questionable ethics, luxury brands claiming ignorance about a well- known problem, “cut-throat” negotiating practices in procurement, and no government-set Continue reading