Congressman Robert Garcia Demands Response From Luxury Retailer Loro Piana Regarding Reports of Inequity For Indigenous Workers
Washington, D.C. – Today, Congressman Robert Garcia (CA-42) sent a letter to luxury retailer Loro Piana’s Chairman Antoine Arnault and CEO Damien Bertrand regarding recent reports about the sourcing of their vicuña wool. Loro Piana's prices have increased over time, with sweaters now retailing for $9,000. Despite this, the price per kilo for fibers paid to the Lucanas community, the Indigenous Andean community in Peru that shears the wool, has fallen by one-third in just over a decade. These reports suggest a widespread failure to ensure that the benefits of the vicuña wool trade are distributed equitably to vulnerable communities. Read the full letter below:
“Dear Chairman Arnault and CEO Bertrand,
As the first Peruvian-American Member of Congress and Co-Chair of the Congressional Peru Caucus, I write regarding concerning reports about the sourcing of vicuña wool by Loro Piana, a subsidiary of LVMH Moët Hennessy Louis Vuitton.
On March 13, 2024, Bloomberg Businessweek reported in “THE VICUÑAS AND THE $9,000 SWEATER,[1]” that the Loro Piana fashion house, in addition to its privatized enclosure and vicuñas operation, is also the sole buyer for the vicuña wool sheared by the Indigenous Andean community of Lucanas. While Loro Piana’s prices have increased, the price per kilo for fibers paid to the Lucanas community has fallen by one-third in just over a decade; and the villages’ revenue from the vicuña has fallen 80%. These reports suggest a widespread failure to ensure that the benefits of vicuña wool trade are distributed equitably to vulnerable communities.
Under the Convention for the Conservation of the Vicuña [2], signed by the governments of Bolivia, Chile, Ecuador and Peru, “Conservation of the vicuña provides an economic production alternative for the benefit of the Andean population.” However, despite the success of Loro Piana, the Indigenous people of this region remain deeply impoverished, with mud houses lacking plumbing and surviving from subsistence farming. There is little evidence the benefits of the return of vicuñas population has trickled down to those it should be benefitting most.
I note that your supplier’s code of conduct asserts that “the LVMH Group strives to have a positive influence on the societies and regions in which it operates, prevent any damage to local communities and requires its Suppliers to apply the same behavior.” [3] This is an important sentiment, and I commend your commitment to free, prior, and informed consent when operating with indigenous communities, as defined by the United Nations Declaration on the Rights of Indigenous Peoples. However, I have serious concerns that efforts in Peru have fallen short.
As part of Congressional oversight of the United States-Peru Free Trade Agreement, I request that you provide written responses to the following questions no later than April 29th, 2024:
1. In harvesting wool sheared in the enclosure owned by Loro Piana, are workers direct employees or contracted workers? What are the wages and benefits for the workers tending to and shearing the vicuñas?
2. What factors do you believe caused falling production levels for the Lucanas’ vicuñas harvest? Would any of your privatized operation have an impact on Lucanas’ production level?
3. Pier Luigi Loro Piana has previously been quoted on the mutual benefits to both the Indigenous population and the company of paying at least $400 per kilo for the Lucanas’ wool. However, the 2023 contract is now reported at $280 per kilo. Has the company analyzed the impact falling prices has on the Lucanas’ ability to continue as a supplier into the future and how this could negatively impact not just the people of Lucanas, but also your own business?
4. Please describe any community benefits or other charitable contributions to the Lucanas Andean Indigenous population from Loro Piana.
5. What monitoring systems are in place to ensure that LVMH Group fulfils its stated mission to have a positive influence on the societies and regions in which it operates?
Further, I request that members of my staff meet with appropriate company personnel to discuss these matters in the coming weeks.
Thank you for your attention to this matter. I look forward to hearing how your luxury textile goods company can ensure the Indigenous Andean people benefit from “the fiber of the gods.”
Sincerely,
Robert Garcia
Member of Congress”
The letter can also be found here.
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