Armani is making headlines today after an Italian court revealed that it is tied up in a labor matter after at least one of its suppliers used subcontractors that flouted national labor laws. In a court order released on Friday, the Court of Milan stated that one of Armani’s suppliers, Manifatture Lombarde, “used subcontractors in the Milan area that employed undocumented migrants for the production of Armani bags, leather goods, and other accessories,” subjecting these individuals to “particularly disadvantageous working conditions,” including requirements that they work a greater number of hours than the company officially declared and the payment of wages of between €2 and €3 ($3.25) per hour. (Reuters reports that not one but two of Armani’s suppliers, Manifatture Lombarde and Alviero Martini, are on the hook for subcontracting out the manufacturing of Armani accessories to third party companies without Armani’s knowledge or authorization.)
In a nod to precautions taken by Armani to avoid impropriety in it supply chain, the court found that Giorgio Armani Operations’ contract with Manifatture Lombarde included a code of ethics, as well as an explicit ban on working with subcontractors, with Armani asserting that it has “always had control and prevention measures in place to minimize abuses in the supply chain.”
“In a ruling dated April 3 and made public on Friday, the court appointed a consultant for one year to work alongside managers [at Giorgio Armani Operations] to improve relations with suppliers,” the AFP reported. The court clarified that the purpose of the year-long judicial administration process is “preventative” and aimed at removing Giorgio Armani Operations “from criminal infiltration as quickly as possible.” Armani said in a statement that Giorgio Armani Operations “will collaborate with the utmost transparency with the competent bodies to clarify its position on the matter.”
THE BIGGER PICTURE: The court’s order – which comes amid a years-long effort by the Milan public prosecutors’ office to investigate the outsourcing of production by large groups in fashion and other industries to subcontractors that allegedly exploit workers, per Reuters – sheds light on rising regulatory attention to apparel brands’ supply chains. (Such attention is likely to increase further in coming years in light of ESG-centric calls for increased transparency about companies’ value chains, including on the human rights front.) While fast fashion companies have traditionally been at the center of labor-related disputes, the matter at hand demonstrates that both the mass-market and high-fashion levels, alike, face difficulties when it comes to keeping tabs on their complex and often murky manufacturing chains.
