Tod's Luxury Brand Faces Labour Exploitation Scandal
Italian prosecutors have launched a serious investigation into three senior executives from the prestigious luxury fashion label Tod's, along with the company itself, over allegations of systematic labour exploitation. This development comes as a significant blow to one of Italy's most celebrated fashion houses.
According to court documents reviewed by AFP on Thursday, Milan Prosecutor Paolo Storari has taken legal action that could severely impact the company's operations. The prosecutor had previously requested a six-month ban on Tod's advertising activities, with Judge Domenico Santoro scheduling a crucial hearing for December 3rd to address this matter.
Shocking Working Conditions Revealed
The prosecution alleges that Tod's, internationally renowned for its fashionable leather moccasins and driving loafers, operated with full awareness of the exploitation occurring within its Chinese subcontracting network. The violations documented include severe breaches in working hours, inadequate wages, poor hygiene standards, and unsafe working conditions, coupled with what prosecutors describe as degrading housing arrangements for workers.
Court documents reveal that the company was completely lacking in organizational models designed to prevent the exploitation of sub-contracted workers. Prosecutors highlighted that Tod's had outsourced audit services to suppliers but then failed to act on the inspection results that clearly indicated multiple signs of worker exploitation.
The investigation focuses on three Tod's executives responsible for operations, supply chain management, and compliance matters. Court evidence shows that these executives allegedly exploited 53 workers, predominantly of Chinese nationality, who were employed by six different subcontractors working for Tod's.
Disturbing Worker Testimonies Emerge
The 144-page court document contains harrowing accounts from workers, including one Chinese employee's testimony about physical abuse. The worker reported being beaten with fists and a long plastic and aluminium tube by his supervisor when he confronted him about approximately 10,000 euros in unpaid wages.
Despite having a contract specifying only four hours of work daily, the worker described a brutal schedule that saw him working from 9:00 AM until 10:00 PM, with only two half-hour breaks for meals and no days off throughout his employment.
Prosecutors characterized the situation as going beyond mere negligence, describing Tod's organizational deficiencies and lack of controls as demonstrating a malicious attitude toward labour regulations. They noted that the investigation uncovered a disturbing phenomenon where the world of luxury fashion and Chinese manufacturing laboratories converged with the single objective of cost reduction and profit maximization through the systematic avoidance of labour laws.
Company Response and Industry Implications
In a statement released Thursday, Tod's revealed that Italy's highest court had rejected the prosecution's request to place the company under temporary court administration. While the company didn't provide detailed explanations, media reports indicate the judicial administration request has been delayed due to jurisdictional disputes.
The company stated it was reviewing the additional material presented by Prosecutor Storari with the same composure, while noting the worrying timing of these new allegations.
Tod's founder and chairman, Diego Della Valle, who ranks among Italy's wealthiest individuals, had previously defended his company's reputation. Last month, he told reporters that Tod's maintains strong ethical values and enjoys worldwide respect. He also warned that such investigations could potentially damage the prestigious Made in Italy brand image that many luxury companies depend upon.
This case forms part of a broader pattern affecting Italy's luxury fashion sector. Several high-end labels have faced judicial administration amid investigations concerning the treatment of sub-contracted workers, with luxury brand Loro Piana being the most recent case before Tod's.
The December 3rd hearing will be crucial in determining the immediate future of Tod's advertising activities and could set important precedents for how Italian authorities handle labour exploitation cases within the luxury fashion industry.
