Gucci refutes Chinese factory conditions

Italian luxury house Gucci has been caught in a television scandal that
said the company’s Chinese employees were working long, arduous hours for
little pay to make its products.

Hidden cameras showed Chinese workers in Italian factories

The Kering-owned company said the RAI-aired broadcast was false, despite
factories claiming they used hidden cameras to allegedly show regulations
being broken, which included Italian workers being sent home and being
replaced by Chinese nationals hired as part-timers but actually working
more hours than full-time workers.

Aroldo Guidotti of the subcontractor, leathergoods specialist Mondo Libero,
was filmed talking about the cost-saving strategy. He also said the workers
made bags that he sold to Gucci for 24 euros and that sell at retail for
1,000 euros.

Gucci in a statement refuted the claims stating: “Hidden and
inappropriately used cameras, shooting carefully selected supplier
companies (three out of a total 576), do not provide for a true or accurate
representation of Gucci and its supply chain policies and procedures.”

However, it also said it would increase the number of factory inspections
and take more action where necessary.

The Tuscan regional government also criticised the programme as being
sensationalist but reporters responded via Twitter saying Gucci should be
grateful it had highlighted the abuses and also referred to a fire last
year that killed seven Chinese nationals who worked in the Italian
leathergoods industry.

On the price issue, Gucci said the comparison was misleading because it
included only the cost of assembly and left out the cost of raw materials,
shipping and packaging.