Company Response
Dior's response to La Selezione factory closure
- Can you confirm whether the facility linked to the allegation is within your supply chain?
- We can confirm that the Romanian company Selezione was a subcontractor of one of our vendors and contributed to the Dior supply chain for a limited period of time (less than 2 years), as second-tier vendor, and produced limited quantities over that period.
- How are you ensuring that your purchasing practices in relation to La Selezione, a factory which closed reportedly due to a lack of orders from buyers, and where buyers were also reportedly driving down prices, meet the standard required to protect workers' rights and livelihoods?
- Selezione contributed to the Dior supply chain for less than 2 years and produced limited quantities over that period. We can also confirm that the various price increases required by Selezione and reflective of the increases of national minimal wage were duly taken into consideration and accepted by our first-tier vendor. Any decrease of Dior orders is strictly related to the actual production needs of Dior, and in no instance to the price increases. Dior requires all first-tier vendors to adhere to our Supplier and Business Partner Code of Conduct. In case first-tier vendors wish to subcontract any production to second-tier vendors, such second-tier vendors must be authorized by Dior and first-tier vendors must ensure their second-tier vendors also comply with the Code's principles. These principles on ethics, compliance, and human rights apply in fact to all suppliers working for Dior at every level of its supply chain.
- We request more information on the allegation, including what your company has done to investigate it and ensure remedy for workers.
- We were able to verify, notably through the review of correspondence and invoices between our vendor and Selezione, that our vendor systematically accepted and applied the hourly rate increases requested by Selezione. We also hired a Romanian consulting firm who confirmed that all applicable local regulations had been duly observed. Based on the above, we can confirm that the layoffs mentioned in your letter cannot be connected with Dior orders.