Italian prosecutors have revealed that Dior pays its workers only USD 57 to make bags that sell for USD 2,780. Italian luxury brands are paying very little to subcontractors to produce handbags, while retail prices are very high. Investigations have found that workers are being exploited. Some workers are even sleeping at work to meet the constant production demands, while safety devices are being removed to speed up the work. Due to violations of labour laws and unfair competition practices, both Dior, which is a division of LVMH, and Giorgio Armani have been placed under judicial administration for a period of one year. LVMH, led by CEO Bernard Arnault, claims to have improved their supply chain and conducted many audits, according to their environmental and social responsibility report. Sonam Kapoor Slays in Parisian Haute Couture! See Her Look at Dior’s Fall-Winter Show.

Dior Pays USD 57 to Produce USD 2,780 Luxury Bag

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