Italian police announced on Tuesday (May 20) that they have arrested a Chinese citizen suspected of exploiting workers and shut down a workshop located in the northwest outskirts of Milan, which produces products for the fashion industry.
According to Reuters, the police stated that they are currently inspecting the branded clothing products found inside the workshop, but did not disclose which brands were involved.
Authorities identified 10 Chinese workers as victims of exploitation. Six of them were working without proper registration, classified as “black workers”, and five of them were also illegal immigrants.
In a statement, the Italian police said that these workers were forced to work up to 90 hours a week, working 7 days a week, and were only paid 4 euros (about $4.50) per hour.
“The workers were forced to live in makeshift rooms illegally set up inside the factory, which looked like dormitories with extremely poor hygiene and health conditions,” the police stated.
This investigation was sparked by a worker reporting their employer, who had physically assaulted the worker for demanding payment of 10,000 euros in unpaid wages, resulting in a broken hand.
In recent years, investigations by Italian prosecutors have exposed widespread labor exploitation in the fashion and luxury goods supply chains.
In June 2024, the Milan court proposed a plan requiring luxury companies to strengthen supplier audits to ensure compliance with labor laws.
According to Reuters, just days before the police statement on this case, a department of the fashion brand Valentino was placed under judicial management by the court due to worker abuse issues in the supply chain, one of the cases damaging the image of Italian luxury brands.
Italy holds a 50% to 55% share in global luxury goods production, with many small manufacturers supplying products to major brands, allowing these brands to label their products as “Made in Italy.” According to a Reuters report last year, a small manufacturer could produce a handbag for Dior for as low as 53 euros, while the same handbag was sold for 2600 euros in stores.