Reading Time: 7 minutes

Report Rai3: fashion sweatshops and the unbroken link between luxury and labour abuse

While Italy was in the midst of Men’s Fashion Week, Rai3’s Report aired a hard-hitting investigation into the labour exploitation behind the luxury brands now seeking a legal shield. Thetopic itself was not new: recently, media outlets have reported on sweatshops hidden behind the façade of Made in Italy. What Report did differently was to go further—attempting to speak directly with manufacturers, workers and brand owners.

Among the major figures contacted, only Diego Della Valle—chairman of Tod’s Group (Tod’s, Hogan, Fay and Roger Vivier)—agreed to appear on camera. His appearance, however, raised more questions than it answered. The investigation revealed that audits had been conducted within the supply chain, yet Tod’s disregarded their findings.

Some commentators accused Report of daring to criticise an industry that represents a significant share of Italy’s GDP. We strongly disagree. When an industry operates—directly or indirectly—through sweatshop conditions, exposing it is not only legitimate, it is necessary.

Judicial administration and labour abuse

Several luxury brands have been placed under judicial administration over failures to monitor labour exploitation in their supply chains.

Valentino Bags—a company controlled by Valentino and responsible for producing bags for the brand—was among them, alongside Loro Piana, Armani and Dior. In one of the Chinese workshops producing Valentino bags, the Carabinieri found a child playing among fabrics and industrial machinery.

In July 2025, the Milan court ordered judicial administration for Loro Piana, the Italian high‑end clothing brand controlled by LVMH. Investigators found that production had been entrusted to companies that subcontracted work to Chinese workshops where workers were exploited.

Della Valle: “The Chinese workshops are not our concern”

In October, the Milan Prosecutor’s Office requested preventive judicial administration for Tod’s SpA. The investigation uncovered serious violations of workers’ rights across the subcontracting chain responsible for producing the brand’s goods. Prosecutors stated that the company was aware of these practices, leading to an investigation for caporalato (the gangmaster system).

Following similar measures against multiple fashion brands, Milan prosecutor Paolo Storari also requested a six‑month advertising ban for Tod’s. Through an exclusive interview with Diego Della Valle, Report reconstructed the luxury supply chain: production is outsourced to Italian firms with no manufacturing facilities, which then subcontract to Chinese workshops.

Della Valle argued that responsibility should not extend beyond the first level of the supply chain. This position is deeply problematic. If a brand entrusts production to intermediaries that do not manufacture anything themselves, what does it expect to happen? And why do brands choose this model in the first place?

In the Tod’s case, one of the most serious issues to emerge was the failure to act on clear audit findings. Problems were identified, yet deliberately overlooked.

The attempted legal shield for luxury brands

Against this backdrop, Article 30 of the Small and Medium Enterprises Bill—approved by the Senate and debated in the Chamber of Deputies—attempted to exempt major fashion brands from liability for crimes committed along their production chains.

Widely described as a legal shield for luxury brands, the amendment was eventually withdrawn following protests by trade unions, workers and the Clean Clothes Campaign. It will now return to the Senate.

During his interview with Report, Minister Adolfo Urso stated that caporalato in Italy had been “brought by the Chinese”. A staggering statement that shifts blame away from the structural drivers.

Shifting blame to the lowest—and weakest—links in the chain conveniently ignores who sets prices, who designs supply chains and who ultimately benefits from lower production costs.

Made in Chitaly: the testimony that explains everything

One of the most powerful moments in Report was the testimony of Andrea Parisi, owner of Spectre Srl, a company specialising in the finishing of heels for luxury footwear.

Until recently, Spectre employed 34–35 people and worked for all the major luxury brands. Today, only three workers remain.

Parisi explained how brands outsource work to companies that possess no machinery, which then subcontract—unofficially—to Chinese workshops capable of producing tens of thousands of units at prices that are economically impossible under legal conditions.

A heel paid €0.80 per piece (€1.60 per pair), he explained, should cost at least twice that amount. This pricing mechanism drives law-abiding Italian manufacturers out of the market, depriving them of contracts, revenue, and skilled labour.

“The most serious loss,” Parisi said, “is our workforce.” Competing, he explained, is impossible unless one is willing to break the law.

Andrea Parisi’s most touching words:

“The fashion sector in Italy no longer exists. But at this moment we don’t even have the tools to fight anymore, how are we supposed to go forward? Must our workers be reduced to ‘Vietnam conditions’? What have we come to? Behind subcontracting, lies undeclared labour, lies precarious employment, exploitation. It must be abolished, full stop, and it must be done tomorrow morning. It’s Made in Italy if the workers’ ethics are respected. Otherwise, write on the products ‘Made in Italy 50%’, at least tell the truth.”

A structural system, not an anomaly

The idea of serving luxury products to everyone has generated this system. The so-called democratic luxury.

As Della Valle said: “We survive because people recognise in us an absolute quality. How many people buy a bag or a pair of shoes from me? Many have the money to do so, then there are those who love them, who perhaps don’t have the money, they make a sacrifice, and to those people you can’t say: ‘You’re working your arse off to buy this little thing, and these people are a bunch of wankers.’”

So brands serve entry price products while, at the same time, cut their costs as much as they can to maximise profits. Let’s clearly state this: the idea of democratic luxury is as contradictory as illiberal democracy: it does not exist. It is either one thing or the other.

As Luca Bertazzoni (Report) said: “The point is that those Chinese companies which President Meloni claims to be fighting are now an integral part of the system and continue to be sought by the major fashion brands to maximise profits. Take the case of Mr Yang, whom we had met a year ago after the Carabinieri found Dior bags inside his workshop in Opera, where workers were being exploited.”

Gian Gaetano Bellavia – expert in corporate criminal law, explained further: “The Italian who wins the contract always keeps his own margin, and it’s the Chinese contractor who has to cut his margin. So then the Chinese contractor perhaps goes to a Pakistani, right? Who is even more desperate than the Chinese.”

This system is not limited to handbags or footwear, nor is it an exception. Furthermore, it is not solely an Italian issue—is Dior an Italian brand? And doesn’t LVMH owns Loro Piana? The problem is structural and global. To be clear, it also exists beyond fashion. Yet, this breadth is not a mitigating factor but an aggravating one.

As Bellavia noted, it is a “war among the poor to serve the rich”. Those at the top remain silent, protected by distance, complexity and legal ambiguity.

Final thoughts

In conclusion, this operating system is not new. As young women working in fashion in the late 1990s, we witnessed its gradual consolidation. For over twenty years, opacity has prevailed. If we saw that, how did nobody question what was happening?

Today, instead of dismantling the system, the Italian government proposes a legal shield for luxury.

But when luxury products are made through exploitation, who is responsible? The last link in the chain? Really? Or those who decide to maximise profits by compressing production costs from the top down?

If Italian manufacturing has been decimated, responsibility lies with both political choices and brand strategies. Blaming labour exploitation solely on the weakest links in the chain is not only dishonest—it is shameful.

A legal shield is not the solution. These companies have money, power and structure. They must be responsible for workers’ conditions and for the reality behind their products. Choosing ignorance forfeits accountability.

Luca Bertazzoni offered a definitive direction:

“If high fashion were to abandon the subcontracting chain that allows it to make profits by producing at rock-bottom prices, Italian artisans could go back to work, with full respect for workers’ rights.”

So, forget a legal shield for luxury. The real solution is clear: dismantle the subcontracting chains that allow luxury brands to profit from cut‑price labour. Only then can Italian artisans return to work under conditions that respect dignity and rights.

Ethics. Fairness. A level playing field.

And hold the brands responsible.