Gucci probed over employee abuse claims

China.org.cn, October 14, 2011

Gucci investigated for labor scandal.

The local government is investigating Gucci, after a Gucci store in Shenzhen was accused of employeee abuse, according to an announcement made by Shenzhen Human Resources and social Security Bureau Thursday, Xinhua reported.

The investigators are looking into the relevant rules and regulations of the Italian label, local officials said.

In an open letter, which was addressed to Gucci senior executives, the five former workers said they had been maltreated at Gucci's Shenzhen outlets in the previous months. They contended that they had to work overtime without fair compensation and had to obtain permission before they could drink water or go to the washroom.

As result of the overtime and late nightshifts demanded at the outlets, more than one pregnant saleswoman had a miscarriage, said the letter, which was published online in late September. The five employees have since resigned.

The letter also claims that workers at the shops had to stand for more than 12 hours a day and would still not receive overtime pay. The company's outlets usually close at 10 pm but, according to the letter, workers had to stay from 2 am to 3 am to conduct inventory checks.

Gucci China removed several managers from their posts and promised a review of its practices on Tuesday, but the accusers said the removal may be a way for Gucci to shift public attention away from its flawed management system.