Gucci settles employee abuse claims in S China

Gucci China and its former employees who said they had been abused by the Italian fashion label have reached a settlement agreement, the local labor union said on Tuesday.

Five former employees of a Gucci flagship store in the southern boomtown of Shenzhen posted an open letter online earlier this month, accusing Gucci of making them work extra hours without pay and pay for any items stolen from the shop.

They also claimed they were required to ask permission to use the toilet or drink water.

Shenzhen's labor union said in a press statement on Tuesday that both sides have reached an agreement to settle the issue after several rounds of negotiations.

However, the labor union did not disclose details about the settlement.

The company has removed several managers from their posts and promised a review of its practices.

The city's labor union also said Gucci had proposed setting up a labor union of its own in order to improve relations with its employees.


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