Gucci Responds to \"Sweatshop\" Allegations

Gucci Gucci faces allegations of operating "sweatshops" after five former employees at its Shenzhen flagship store penned an open letter claiming the Italian luxury group fostered an "inhuman" working environment , reported China's Global Times. In the letter, addressed to Gucci senior executives, the individuals outlined 100 rules regulating employee behavior at the store, such as asking permission to drink water or taking a restroom break. Logging long working hours without pay, having to stand for more than 14 hours at one time, and not receiving standard employee discount cards were also cited.

"When we asked about this, the management replied that a discount card would be pointless as I and my colleagues are too poor to afford Gucci things," disclosed one of the female writers using the surname, He.
This weekend, Gucci's Chinese headquarters responded to the Global Times saying "the company has always paid close attention to employee welfare, is investigating the complaints and will deal with the problems properly as soon as possible." Gan, a former manager at Gucci's Beijing office, told the paper that the "mistreatment of employees is rife at all levels in the brand's mainland stores." Furthermore, she states: "These problems are not associated with the brand. Rather, they were caused by the mismanagement of Gucci's China branch."
As of today, Gucci has replaced upper-level management at the Shanghai outpost, set up confidential outreach between employees and managers, tightened its training programs, and outlined the brand's core principals. “Furthermore, Gucci has proactively engaged external consultants to conduct a comprehensive review to support ongoing actions that can enhance our organizational structure, the welfare and training of our people, talent recruitment and retention and other business practices in China,” Gucci Inc. said in a statement. “Gucci always sets and seeks to achieve high standards for itself, its management, people and products, wherever we operate our business. Our business achievements in the fast growing China market come as a result of the commitment of our employees. As a responsible employer, we will continuously listen to our employees and nurture an enjoyable working environment by encouraging the practice of treating colleagues with respect and care.”
The five former staffers are asking for $15,000 in overtime wages. According to the paper, the HR bureau of Shenzhen's Luohu District claims Gucci has denied compensation, but their hands are tied until the two sides can agree on overtime calculations.