Reports have emerged that LV’s workers are unhappy. Further price hikes to meet the employees’ demands?
Although it’s been described as an “LVMH’s Sales Boom” this past year, the luxury conglomerate has reportedly not been able to meet their staff’s pay expectations. According to French daily Le Monde, employees were encouraged by unions to mount a walk-out at five LV-owned factories last Thursday in what has been called a “rare event” within possibly the world’s most famous fashion group. And “hundreds” apparently did. This action was urged as Louis Vuitton management deliberated “a new agreement on working time in order to reduce overtime”, the paper stated. Apart from the schedule change, the workers also walked out due to “low wages”.
In addition, BOF shared that “the unions had been working with the LVMH-owned company since the fall, and are now threatening to strike in the coming week if the company does not meet their demands”. The French conglomerate responded by saying that they offer “an attractive remuneration policy,” according to Fashion Network, and that they support “work-life balance”. The conflict is believed to be resolved.
Some Louis Vuitton fans we know are surprised that their favourite brand would be caught in such a dramatic labour dispute when the maker of the Speedy and the Twist has been doing well (queues outside their stores on Valentine’s Day!) and had raised the prices—LV called the exercise an “adjustment”—of some of their products. PR professionals we spoke to do not believe this will impact the brand’s still-strong appeal, although younger customers that LV has been targeting might find it tough to open their wallets easily, and regularly.
Photo: Zhao Xiangji