Following Alviero Martini SpA and Giorgio Armani Operation (GAO), Dior Manufactures has also come out of receivership. The Court of Milan recognised the commitment of the Italian operating branch of the French fashion house to restructuring the production chain and, most importantly, strengthening control practices. Barring any unexpected developments or further involvement, the large-scale investigation by the Milanese public prosecutor’s office into haute couture comes to an end here. However, illegal labour exploitation remains a pressing issue in the supply chain.
Dior Manufactures is out of receivership
As with Alviero Martini and GAO, the Court of Milan did not find Dior Manufactures criminally responsible for the cases of illegal labour exploitation uncovered at subcontractors operating within its supply chain. However, the company was criticised for failing to implement sufficient monitoring tools to oversee suppliers’ practices. Il Sole 24 Ore reports: “The judges of the Prevention Measures section of the Court of Milan acknowledged the company’s significant planning, economic, and cultural efforts to position itself within the fashion sector as a brand with strong ethical values and social responsibility. In practical terms, Dior Manufactures has introduced 17 new professional roles dedicated exclusively to tightening controls on the production chain and terminating contracts with high-risk suppliers”.
The limits of the judicial route
It is clear that the Milanese courts’ actions alone cannot rectify the structural flaws of the fashion industry. Why? Firstly, because the initiative is regional in scope, much like the Lombardy protocol, which seemed ready in mid-January but has yet to materialise. Secondly, because the responsibility for overseeing ethical practices should lie with the brands’ top management, not the public prosecutor’s office. Il Sole 24 Ore concludes: “The root issue exposed by these investigations is not only the production chain, which relies on subcontracting that is poorly regulated in terms of labour law, but also the extremely low prices and tight deadlines imposed on suppliers by fashion houses – factors that contribute to the proliferation of illegal labour exploitation”.
Read also:
- Illegal Recruitment: Armani’s Judicial Administration Revoked
- Dior, a new industrial department to control the supply chain
