The Unsettling Cost of Quiet Luxury: Loro Piana’s Labor Exploitation Case

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Summary

  • LVMH-owned Loro Piana has been placed under court administration for a year after a worker was beaten at a subcontracted workshop for demanding unpaid wages, revealing severe labor exploitation, including undocumented workers paid €4/hr, forced to endure 90-hour weeks.
  • This incident highlights broader issues of worker abuse in the luxury apparel industry, with Loro Piana being one of several brands, including Armani, Dior, and Valentino, recently scrutinized by a Milan court for labor violations despite Europe‘s push for ethical production.

In the gaming world, I’d say it like this: “Just heard some shocking news as a gamer – Loro Piana, a label owned by LVMH, has landed in hot water. Seems they’ve been placed under court supervision for a year due to some serious allegations. It’s all because an employee, working at a subcontracted workshop, was brutally mistreated when he asked for his unpaid wages. This is a grim reminder that the gaming world isn’t the only one with its share of challenges.

A workplace northwest of Milan, contracted for jacket production and owned by a Chinese individual, was closed down following an incident. The Carabinieri police apprehended the facility’s owner and shut it down. As reported by Business of Fashion, during their investigation, the Carabinieri discovered that this factory, producing Loro Piana cashmere items, employed 10 Chinese migrant laborers; 5 of these workers lacked proper documentation.

Working up to 90 hours a week, seven days straight, these laborers received just €4 per hour, residing illegally within the factory premises. Investigations by the Carabinieri uncovered two intermediary firms and three Chinese workshops in Milan, where it was discovered that over half of the workers were operating without proper registration.

According to a recent announcement, Loro Piana has acknowledged receiving a notice from the Court of Milan’s Preventive Measures Section concerning allegations about labor practices at an unidentified and unauthorized subcontractor of one of their suppliers.

The company claims that its manufacturer failed to disclose their subcontractors involved in labor infractions, and swiftly ended ties with this specific manufacturer within a day of being informed on May 20th.

Loro Piana strongly denounces any unlawful activities, reinforcing their steadfast dedication to ensuring respect for human rights and adherence to all relevant laws across their entire supply chain, as stated in their declaration.

New developments arise in the ongoing push to ensure luxury companies like Loro Piana address labor exploitation issues, a problem that unfortunately extends beyond their specific supply chains and is indicative of widespread worker mistreatment within the global apparel sector as a whole.

Meanwhile, it’s worth noting that an Italian cashmere retailer is just one among five high-end fashion labels that have been under court administration due to labor issues recently, in Milan. Brands like Armani, Dior, and Valentino are also included in this list, having had their restrictions eased over the past year after addressing the reported abuses.

A striking aspect that frequently stands out is the considerable gap between what garment workers earn compared to the high-end prices, such as Loro Piana’s cashmere jacket fetching over $5,000. As per a court ruling, one owner of an intermediary claimed to produce around 6,000-7,000 jackets annually for Loro Piana, with each jacket priced at €118 if the order exceeded 100 items, and €128 for orders under 100 items.

It’s not unusual for luxury brands to face criticism over their workforce practices, but Loro Piana had been under close scrutiny due to concerns about the treatment of indigenous and immigrant workers. In 2024, it was disclosed that an Andean village dependent on Loro Piana’s business was only receiving around $280 for the same quantity of Vicuna wool used in garments worth up to $9,000 USD.

Bloomberg’s 2024 report highlighted Andrea Barrientos, a Vicuna herder from the Andean community of Lucanas, who stated that they and others in their community do not receive any payment distributed to them. Remarkably, this woman had never even seen a completed Loro Piana garment, despite spending her life farming the rare camelid wool.

It’s come to light that working conditions akin to sweatshops aren’t exclusive to developing regions and can be found in Europe as well. Surprisingly, some of these instances involve big-name European fashion houses such as LVMH. However, European governments are surprisingly spearheading some of the most vigorous campaigns to encourage ethical manufacturing practices.

In June, an unprecedented bill was passed by France’s Senate with the goal of controlling fast fashion companies, marking a significant advance in attempts to reduce the environmental effects caused by excessive consumption. Yet, some critics noted that the proposed measures primarily targeted Asian companies such as Temu and Shein, while offering less stringent regulations for European firms.

Although luxury brands frequently charge steep prices, leading to high profits, many key artisans and suppliers are still struggling financially. stricter European regulations aimed at preventing labor exploitation and reducing the environmental footprint of the fashion industry are helping to establish a more ethical business model centered on responsibility.

As a gamer, I often appreciate the intricate worlds and immersive experiences crafted by game developers, yet I rarely consider their personal struggles. However, the latest releases from renowned studios serve as a stark wake-up call, shedding light on the hardships faced by the individuals and communities who bring these digital luxuries to life.

Stay tuned to TopMob for the latest industry insights.

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2025-07-15 23:56