The Company Placed Under Administration for Labor Exploitation
The company Alviero Martini has been placed under judicial administration by the Milan Court following an investigation by the Carabinieri’s Labor Inspectorate Unit
The company Alviero Martini, known for bags and accessories featuring geographic maps and a decade ago a staple on the runway during women’s fashion week, has been placed under judicial administration by the Milan Court.
The Administration Ordered by the Milan Court
Following an investigation by the Carabinieri’s Labor Inspectorate Unit, the company, which has been owned by the holding company Final Spa for twenty years, was “deemed incapable of preventing and curbing phenomena of labor exploitation within the production cycle.” Specifically, the fashion house allegedly maximized profits by using “Chinese workshops” and “employing undeclared and illegal labor,” as stated in the provision from the Prevention Measures Section of the Milan Court, which ordered the administration at the request of the prosecutor, Paolo Storari.
The main allegation against the fashion house is the lack of control over its supply chain: the company allegedly “never conducted inspections or audits of the production chain to verify the actual working conditions” and “the technical capabilities of the contracting companies, thus negligently facilitating individuals with substantial evidence of the crime of illegal labor exploitation.”
The Company’s Response
The company issued a press release stating that it “promptly made itself available to the competent authorities, as neither the Company nor its representatives are under investigation, to ensure and implement, through all its suppliers, compliance with labor protection regulations.” The fashion house reiterated in the statement that “all the Company’s supply relationships are governed by a specific code of ethics for the protection of labor and workers, which each supplier is bound to respect. Should any illegal activities be carried out by third parties, introduced into the production chain without the Company’s knowledge, which are entirely contrary to the company’s values, the Company reserves the right to intervene in the most appropriate ways and venues to protect workers first and foremost and the company itself.”
The Investigation into Suppliers
Like many other fashion companies that are unable to produce internally, Alviero Martini had outsourced “through a contract with a prohibition of subcontracting without prior authorization, the entire production to third-party companies, with complete outsourcing of production processes.” However, in this specific case, among the third-party companies (or those working on contract for third-party companies) there were Chinese workshops employing irregular labor, which not only worked at night but even slept on the premises, in clear violation of health and safety regulations. This ensured a production cost of about 20 euros for products that, in stores, had a retail price of 350 euros. Moreover, this did not occur far from the brand’s headquarters, founded in Milan in 1991, but just a few kilometers away, in a completely Lombard triangle: between Milan, Pavia, and Monza and Brianza.
Investigations by the Milan Labor Inspectorate Unit began in September 2023, and in the eight workshops inspected, all found to be irregular, law enforcement identified 197 workers, 37 of whom were working illegally and were undocumented in the country. As previously mentioned, in the unauthorized production facilities, it was found that work was carried out under exploitative conditions (wages below the threshold, non-compliant working hours, unhealthy working environments), with serious violations of workplace safety regulations (lack of health surveillance, lack of training and information). Moreover, the labor force was housed in illegal dormitories and in critical sanitary conditions.
Ten Owners Reported and Six Companies Closed
At the end of the investigation, ten owners of companies of Chinese origin, both legally and effectively, were reported for illegal labor exploitation, along with 37 individuals not complying with residency and stay regulations in the country. Finally, fines amounting to over 153,000 euros and administrative penalties totaling 150,000 euros were imposed, and six companies were ordered to suspend operations due to serious safety violations and the use of undeclared labor.
By Marta Casadei – Sole24Ore
January 17 2024
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