The Dark Side of Luxury: Labor Exploitation in the Production of Dior Bags

Heidi Truong

- Fashion Blogger -

Luxury fashion has long been synonymous with elegance, exclusivity, and high price tags. Dior, a revered name in the fashion world, epitomizes these ideals. However, recent investigations have shed light on a stark contrast between the opulent image and the grim reality behind the scenes. Shockingly, classic Dior bags, sold in upscale boutiques for €2,600, are produced at an astonishingly low cost of just €53. This revelation has sparked widespread condemnation, highlighting labor exploitation within not only fast fashion but also prestigious luxury brands.

The fashion community covets Dior bags for their creative, artistic, and collectible value. However, before reaching the luxurious stores, these bags are produced in workshops for a fraction of their retail price. The Milan Court recently turned its attention to Dior’s production practices in Italy, revealing a disturbing pattern of labor exploitation. Under the coordination of prosecutors Paolo Storari and Luisa Baima Bollone, Dior has been accused of failing to prevent labor exploitation, maximizing profits by cutting costs on labor, employee safety, and related financial procedures.

The investigation into labor issues within the fashion industry began in March 2024, involving four manufacturing plants, notably including two companies in the leather goods sector: Pelletterie Elisabetta Yang and New Leather (SRL). In these production warehouses, police were able to inspect the working conditions of the workers, uncovering a series of alarming practices.

In a factory in Opera, near Milan, the Carabinieri police discovered 17 Chinese workers and 5 Filipino workers operating at full capacity amidst flammable solvents and adhesives on pressing machines. Many of these workers, who lacked formal contracts, were also living in substandard conditions within damp warehouses, with a small kitchen, only seven bedrooms, and two bathrooms that were neither clean nor equipped with basic amenities. In Cesano Maderno, three workers even attempted to escape when the Carabinieri arrived to investigate but were promptly detained.

Similar cases were also uncovered at a Dior production facility. Workers there not only endured precarious working conditions but were also instructed to lie during inspections. They were "exhausted" from working from 6:30 AM until late at night, every day, including holidays.

According to the decree, these were not sporadic incidents but part of a "system" tightly established and persisting for decades. Outsourcing production labor allowed the brand to significantly cut costs by not having to pay fixed salaries or taxes. The investigation revealed a total of 32 workers were discovered, with 7 unregistered for tax purposes and 2 being illegal workers; they were paid below the minimum wage, worked in unhealthy and illegal conditions, and were not protected from chemical agents by safety equipment.

The judges concluded that Dior’s manufacturing plant failed to verify the actual business capabilities of its contracted companies, demonstrating a significant oversight in controlling the production process. Five workshop owners are also under investigation for organized crime, abuse, and failing to issue important invoices. Dior faces a fine of 138,000 euros, with additional administrative penalties totaling 68,500 euros and a suspension of operations for four subcontracting units.

Following these investigations, the President of the Milan Court, Fabio Roia, has proposed a more stringent discussion in the fashion sector, similar to that in logistics. The goal is to sign a protocol with the Province of Milan, the labor inspection agency, and industry operators to prevent labor exploitation in the fashion sector. It's not only Dior; labor exploitation is undoubtedly prevalent among many "giants" in the fashion domain. These investigations once again prove that labor exploitation in the fashion industry is not merely an isolated act occurring at a low frequency, but a systematic chain with "roots" that has "bled" generations of workers dry.

To effectively eliminate and prevent this alarming issue, the law must implement systemic and stringent measures. Brands also need to comply to ensure a more sustainable and ethical future for fashion. The following steps are essential:

1. Enhanced Regulation and Enforcement: Governments and regulatory bodies must strengthen labor laws and ensure rigorous enforcement to protect workers from exploitation.

2. Transparency and Accountability: Fashion brands must adopt transparent practices, disclosing their supply chains and production processes. Regular audits and third-party inspections can help ensure compliance with labor standards.

3. Fair Wages and Working Conditions: Brands should commit to paying fair wages and providing safe working conditions. This includes proper contracts, health benefits, and safe housing for workers.

4. Consumer Awareness and Advocacy: Consumers play a crucial role in demanding ethical practices from fashion brands. By choosing to support brands that prioritize ethical production, consumers can drive change in the industry.

5. Collaboration and Collective Action: The fashion industry should work collaboratively with NGOs, labor unions, and governments to create a unified front against labor exploitation. Collective action can amplify efforts to bring about systemic change.

The revelation of labor exploitation in the production of Dior bags underscores a deep-rooted issue within the fashion industry. As luxury brands like Dior come under scrutiny, it is clear that ethical practices must become the norm, not the exception. By implementing stringent measures, ensuring transparency, and fostering consumer advocacy, the fashion industry can move toward a more sustainable and ethical future. The glamorous façade of fashion must reflect genuine respect for the people who bring these creations to life, ensuring that the allure of luxury is not tainted by the shadow of exploitation.