Italian court targets Armani over labour violations

Rome, April 5, 2024 (AFP) - An Italian court has placed under partial judicial administration a unit of luxury fashion group Armani for using subcontractors who violated labour laws, according to a ruling made public Friday.

Giorgio Armani Operations, a company wholly owned by Giorgio Armani which deals with the design and production of the label's clothes and accessories, is not itself accused of wrongdoing.

But the court says one of its suppliers, Manifatture Lombarde, used subcontractors in the Milan area that employed undocumented migrants for the production of Armani bags, leather goods, and other accessories.

In a ruling dated April 3 and made public on Friday, the court appointed a consultant for one year to work alongside managers to improve relations with suppliers.

"The purpose of the judicial administration is not repressive but rather preventative," to remove Giorgio Armani Operations "from criminal infiltration as quickly as possible", the court said.

The contract between Armani and Manifatture Lombarde included an ethical code and an explicit ban on using subcontractors, but investigators found Manifatture Lombarde itself did not have its own workshops.

Instead, the firm had subcontracted production to what the court called "Chinese workshops" mainly employing Chinese and Pakistani nationals working in conditions that violated basic safety rules in unsanitary places.

The workers were forced to accept "particularly disadvantageous working conditions which translate into real exploitation", notably by working a greater number of hours than officially declared, the court said.

In a statement, the Armani group said it was aware of the "prevention measure decided by the Courts of Milan against GA Operations".

"The company has always had control and prevention measures in place to minimise abuses in the supply chain.

"GA Operations will collaborate with the utmost transparency with the competent bodies to clarify its position on the matter."

Giorgio Armani, 89, is the third richest man in Italy, according to Forbes magazine, with a fortune estimated at more than 11 billion euros.(AFP)