sweatshops Archives

Illegal labour subcontracting in the fashion industry: A landmark agreement signed

28 May, 2025 / Leave a Comment

Reading Time: 2 minutes

Authorities and brands commit to tackling exploitation: Progress or just a promise?

Apparently, the fashion industry is finally ready to address one of its most uncomfortable truths: illegal labour subcontracting.

On Monday, May 26, after a year of negotiations, the “Memorandum of Understanding for the Legality of Procurement Contracts in the Fashion Production Chains” was signed at the Milan Prefecture. The agreement seeks to promote legality, fairness, and transparency across the supply chain while supporting the sector’s development.

Prompted by investigations from the Milan prosecutor’s office—targeting brands including Alviero Martini S.p.A., Dior, Armani, and most recently Valentino—the Milan Prefecture identified the urgent need for concrete measures. This agreement is meant to improve working conditions, combat exploitation, and curb tax evasion and other illicit practices within fashion manufacturing.

Fashion industry supply chain: What the agreement proposes

The protocol introduces a “dual track” system:

A digital supply chain platform: Manufacturing companies will voluntarily register and provide detailed data about their structure, workforce, and production phases.
A “green list” of verified companies: Brands can access this list to identify suppliers with transparent and traceable operations.

To incentivise participation, compliant companies may earn a “Certificate of Transparency in the Fashion Sector” and gain access to regional benefits offered by Lombardy.

National relevance & industry reservations

Luca Sburlati, President of Confindustria Moda, emphasised the national significance of the initiative despite its territorial foundation:

“The national scope is clear—both due to the broad representation of the signatories and because fashion supply chains transcend regional borders.”

He suggests expanding the framework nationwide. Yet not all stakeholders are fully on board. The Camera Nazionale della Moda Italiana (CNMI) expressed concerns:

“Some essential elements must be redefined operationally to prevent unintended negative consequences for companies and the supply chain.”

In particular, CNMI is wary of potential breaches in brand confidentiality and the handling of sensitive data within the platform.

The agreement: Voluntary… For now

So, the fashion industry has finally signed an agreement to end illegal labour subcontracting—luxury sweatshops. But a healthy production chain costs more—are brands truly ready to pay the price?

Participation in the platform remains voluntary, raising concerns about the real impact of the initiative. Without mandatory enforcement or clear consequences for non-compliance, there’s a risk that only a handful of “virtuous” companies will engage—while others continue to operate in the shadows.

If transparency is truly the goal, will good intentions be enough?

Illegal labour subcontracting in the fashion industry: A landmark agreement signed Read More »

Luxury sweatshops: “What people don’t want to see”

Reading Time: 2 minutes

The ugly truth behind the fashion industry — and why consumers look away

Luxury sweatshops are a glaring yet often ignored reality in the fashion world. A disturbing contradiction, indeed. Last night, RAI3’s Report exposed how major luxury brands—including Alviero Martini, Giorgio Armani, Dior, and Valentino—outsource production to factories where workers endure deplorable chttps://suite123.it/2024/06/17/dior-in-court-admnistration-and-the-case-of-luxury-fashion/onditions. The investigation also revealed systemic tax evasion, helping explain how these brands maintain profits despite market instability.

In essence, luxury brands pay an average production cost of 30 to 50 euros in the outskirts of Milan, then sell these items in Via Montenapoleone for 1,500 to 2,500 euros.

The narrative pushed by these fashion giants is predictable: blame the Chinese subcontractors for exploiting workers. But the truth? The real culprits are the brands themselves—maximising profits while squeezing contractors, who are underpaid and forced into unethical labour practices. Whether subcontractors are Chinese or Italian, the exploitative practice remains the same.

Luxury sweatshops: Why does this keep happening?

Two key reasons:

This is standard practice. Without strict, enforceable regulations, nothing will change. Voluntary agreements and empty promises won’t fix a broken system.
Consumers ignore it. As one anonymous interviewee admitted: “It’s something people don’t want to see.” Luxury sweatshops and exploitative subcontracting happen in plain sight—yet we choose to ignore them.

What’s even more ironic? People baulk at prices from independent designers—brands with tiny margins that fight to produce ethically—yet stay silent when luxury brands demand astronomical markups built on exploitation.

Final thoughts: The death of true luxury

We’ve said it before: luxury is dead. The existence of luxury sweatshops proves it. Today’s “luxury” is a hollow status symbol, propped up by human suffering.

But we can change this. Real luxury isn’t about a logo or a price tag. It’s about craftsmanship, fairly paid. Ethical labour. Skilled hands treated with dignity. High-quality materials and exclusivity – which cannot come from mass production at the cost of people and the planet.

It’s time to reject complicity.

Reject fake status symbols. Vote with your wallet. No luxury can exist at the cost of human dignity. Support brands that value ethics over exploitation.