La Milan Public Prosecutor's Office has asked in recent months to submit Tod's Spa – the historic company led by Diego and Andrea Della Valle, a symbol of Italian style in the world – to the measure of prevention of judicial administrationThe accusation is that of having “culpably facilitated heavy labor exploitation" within its supply chain. In other words, according to the prosecution, Tod's failed to prevent the exploitation of foreign workers in inhumane conditions in the laboratories of some subcontractors. The judges, however, believe that it is not up to Milan to deal with the case: for them, the territorial jurisdiction belongs to the Court of Ancona. It will be there Supreme Court, on November 19, to establish which prosecutor will have to continue thesurvey.
Despite not being under investigation, Tod's finds itself in the middle of a case that intertwines the luxury of Made in Italy and the exploitation of Chinese factories: two worlds united by "cost reduction and profit maximization," sometimes to the detriment of workers' rights.
Tod's: What is gangmastering and what does "culpable facilitation" mean?
The investigation was born after a series of inspections conducted by the Carabinieri of the Labor Protection Unit, which have highlighted situations of exploitation in several Chinese laboratories linked to the brand's supply chain, both in the Marche region and in the Milan area. In two factories in the Marche region – “Wang Junii” in Monte San Giusto (Macerata) and “Lucy srls” in Torre San Patrizio (Fermo) – the inspectors found extreme working conditionsNight and holiday shifts, machinery without safety devices, and wages between 2,75 and 4,5 euros an hour, often for workers without a residence permit.
The spotlight was also turned on "Magic Cutout”, a Varese-based company considered the leader of the supply chain between Tod's and the Chinese factories. For the Prosecutor's Office, the picture that has emerged configures a system of caporalato – that is, illicit recruitment and exploitation of labor – culpably facilitated by Tod'sIn practice: if a company does not adequately monitor its suppliers, it can be held liable even without having directly exploited workers.
The public prosecutor Paolo Storari has asked for the administration of the company, that is, the temporary assistance of a judicial administrator. This is a preventive measure that the State can apply even before a conviction, to stop activities deemed dangerous or unlawful. But the measure has not yet been applied, because the matter is suspended pending the decision of the Court of Supreme Court on a matter of territorial jurisdiction.
Checks on other laboratories and the "uniform case"
At the same time, the investigators have extended the checks to other Chinese laboratories in Lombardy, such as “Zen Confezioni srl” of Baranzate and the “Li Quingdong” company of Vigevano, subcontractors of Maurel srl, which in turn supplied Tod's. In these factories, however, they did not produce shoes or bags, but uniforms for Tod's store clerks.
From here a crucial distinction arises: according to the Milanese judges, Tod's iIn this case it is only the customer, and not the manufacturer of the goods, therefore cannot be held directly responsible for any abuses. However, the prosecutor Storari disputes this interpretation, calling it "frankly incomprehensible": "The distinction introduced between products intended for sale (shoes) and products for internal use (uniforms) seems to introduce a sort of distinction between permitted and prohibited gangmastering, which is outside the system." Essentially, according to the Prosecutor's Office, exploitation does not change nature depending on the type of product realized.
The crux of territorial jurisdiction
Making the matter more complex is the question of territorial jurisdiction, that is, which court has the right to judge. For the Milan Court of Appeal, the center of the contested activity is located in the Marche region, where the two main suppliers operated and where Tod's has its registered office in Sant'Elpidio a Mare (Fermo). The Milan Public Prosecutor's Office disagrees: according to prosecutor Storari, even baranzate e Vigevano are gangmaster crimes emerged, and therefore Milan cannot declare itself incompetent. Supreme Court, next November 19th, will have to definitively untie the knot.
Tod's reply
In relation to the news about the "alleged exploitation of workers by its subcontractors", Tod's reiterates its compliance with all current regulations., including workplace safety, and that its inspectors perform constant checks on the laboratories it selects and uses. The company emphasizes "it is deeply saddened to think that, had we been contacted at the right time—many months ago—we could have provided all the necessary clarifications and clearly explained our production organization, which has always been governed by rules and laws."
Tod's also specifies that the laboratories "regularly visited by our managers, sign, before starting to operate with the group, agreements that protect the quality of the working environment and the conditions of the employees who work there, as well as, obviously, the compliance with national employment contracts"Tod's factories are considered a global leader in environmental protection and social services aimed at improving the daily lives of those who work there. For Tod's, the quality of our products and the quality of our employees' working lives are essential." Finally, the company assures: "Convinced of this position, in the coming days we will review the documents relating to the ongoing proceedings and will promptly provide all the necessary clarifications to demonstrate our complete non-involvement."
Tod's: decisions already made and what happens next
In March, the Court of Milan – Preventive Measures Section had the Prosecutor's request was rejected, noting that for the Lombardy laboratories, responsibility for the lack of controls fell on the Italian contractor, to whom Tod's had initially awarded the contract and which in turn had subcontracted to the Chinese laboratories; furthermore, the garments produced by these factories were intended for Tod's employees and not for sale to the public. For the laboratories in the Marche region, however, where Tod's had directly subcontracted the production of uppers, the Court ruled that jurisdiction fell to the Marche courts, marking the crux of the future Supreme Court decision.
The investigation into Tod's is not an isolated case: in recent months similar proceedings have involved Loro Piana, Valentino, Alviero Martini, a company of the Armani group, and an Italian subsidiary of the Dior group. All episodes, though with different outcomes, highlight a common weakness: the difficulty of controlling a global and fragmented supply chain, where brand prestige clashes with the often opaque reality of contract manufacturing.
