Netizen Journalist

Dior-Armani Price IDR 45 Million Made by Workers Wage IDR 32 Thousand

Holiday Ayo - Dior and Armani are accused of underpaying illegal workers from China IDR 32 thousand per hour to make bags that are sold for IDR 45 million. 

This exploitation of migrant workers was exposed by Italian law enforcement officials. Local police initially raided a number of workplaces, aka workshops and factories, which turned out to employ illegal migrant workers. 


“Prosecutors in Milan accused the companies (Dior and Armani) of paying subcontractors to employ Chinese migrants and other foreign workers, who were paid only US$2-US$3 (around IDR 32 thousand, assuming IDR 16,282 per US dollar) per hour," wrote the report. Sky News, Thursday (4/7). 


It is claimed that the workers who were paid cheaply worked from the afternoon until the next morning. Workers for Dior and Armani were also forced to come in on holidays and weekends. 


Not infrequently, migrant workers for famous fashion brands have to sleep or rest where they work. Dior is a famous French fashion brand run by Bernard Arnault and family. 


This company paid US$57 or IDR 928 thousand to the supplier to produce each handbag. After the bag was finished, Dior sold it for US$2,780 or IDR 45.27 million. 


On the other hand, Armani, which is an Italian brand, disburses more money to suppliers to produce handbags. 


They paid around US$270 or IDR 4.39 million to produce handbags, which were then sold for US$ 2,000 or IDR 32.57 million. 


Judges in Italy have taken a number of fashion companies to court. Dior, Armani and similar companies have been accused of employing workers inappropriately. 


However, the Giorgio Armani Group avoided this. The company, which outsources its production to GA Operations, denies a series of accusations of worker exploitation. 


“The company always implements control and prevention measures to minimize abuse in the supply chain," explained Armani's official statement. 


“GA Operations will work with the authorities in a transparent manner to clarify this matter," the company said. 


In fact, the Italian Police openly exposed GA Operations for hiring subcontractors to employ Chinese workers. 


These workers are illegal migrants. For one handbag sold by Armani, the Chinese subcontractor was paid US$100 or IDR 1.62 million. 


Meanwhile, other subcontractors as intermediaries received IDR 4.4 million plus IDR 2.76 for each handbag produced.

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