Legislator Questions Loro Piana Regarding Alleged Exploitation of Indigenous Peruvian Workers

TL/DR –

Representative Robert Garcia has demanded explanations from luxury design house Loro Piana over accusations that it is underpaying Peruvian indigenous workers who source the rare wool used in some of its high-end clothes. Garcia claims that while Loro Piana’s prices have increased, the price paid to the Lucanas community for fibers has fallen by a third in just over a decade, and revenue from the vicuña has decreased by 80%. Loro Piana disputed the claims, arguing that their practices have helped the vicuña population in Peru recover from near extinction and that they compensate workers in accordance with local practices.

US Congressman Questions Luxury Brand Over Exploitation of Indigenous Workers

A $9,000 designer sweater sourced from the fur of the vicuña, a South American animal, isn’t standard discourse for a U.S. Congressman. Nonetheless, when Representative Robert Garcia learned that Loro Piana, a luxury design house, was underpaying Indigenous workers who gather the rare wool, he used his authority to speak out.

As the first Peruvian-born Congressman, Garcia addressed his concerns about the exploitation of Peruvian workers to Loro Piana’s executives, part of the LVMH Moët Hennessy Louis Vuitton conglomerate. He questioned the paradox of the brand’s soaring price tags while reducing payments to the wool gatherers.

Garcia highlighted the shrinking returns for the Lucanas community who harvest the vicuña wool, despite Loro Piana’s increasing prices. He noted that the price per kilo paid to the community had dropped by one-third over a decade, and their revenue from the vicuña had plummeted 80%.

Garcia’s confrontation with the Italian clothing brand serves as a reminder of lawmakers leveraging their unique backgrounds to spotlight exploitation in industries they feel connected to. “The things they’re buying are being made with exploitation,” he stated, drawing attention to the plight of the exploited workers.

His advocacy was prompted by a Bloomberg report on the relationship between Loro Piana, a dominant player in the luxury goods industry, and the Peruvian Indigenous artisans working with the vicuña’s fur. The wool is considered one of the most expensive fabrics, once worn by Incan royalty. Despite the prestige, the workers live in stark contrast to the wealthiest consumers.

Loro Piana, a brand within the empire of the world’s richest man, finds itself joining other large corporations like Amazon and TikTok, under congressional scrutiny for exploitation and business practices.

The chief executive of Loro Piana North America, Matthieu Garnier, rejected Garcia’s claims, stating the company maintained a respectful relationship with the Peruvian community. He stressed their conservation efforts, claiming they helped the vicuña population rebound from near extinction. He also stated that workers were paid in line with local practices. Despite defending the company’s actions, Garnier did not specifically address the claims of reduced payment.

Unsatisfied with Garnier’s response, Garcia vowed to continue pushing for changes, stating: “Just saying that you’ve invested in education and infrastructure improvements is not enough.”

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