Through the research project United Colors of Money, journalist Salvatore Gulisano looks behind the glittering facade of one of Italy’s most powerful brands, uncovering the opaque dynamics of the textile group’s restructuring. Novi sindikat participated in the production of the documentary, alongside our partners from the Clean Clothes Campaign Network in Italy and the Fair organization.
Benetton: Consequences of Corporate Restructuring
In the show “100 Minutes,” directed by Corrado Formigli and Alberto Nerazzini, journalist Salvatore Gulisano tracks—through documents and testimonies, including the experiences of the Clean Clothes campaign—the consequences of an extensive corporate restructuring that the group rushed after the collapse of the Morandi Bridge, which is also linked to this textile chain.
Namely, in addition to textiles, the Benetton Group owns other companies as well. One of them was the Italian “Autostrade,” which managed the construction of the bridge. In the bridge collapse of 2018, 43 people were killed and 16 were injured.
The journalist has been following the restructuring process for some time, with a special focus on two cases: the relocation of production from Tunisia and Croatia, where Benetton’s withdrawal left serious consequences for workers and local communities.
The restructuring process is being conducted opaquely and with serious social consequences, especially for workers employed by subcontractors. Once again, the heaviest consequences will be borne by those in the weakest position.
The Tunisia Case: The Obligation to Prevent Potential Harm
In Tunisia, Benetton closed two companies it owned, reaching an agreement with local authorities and unions to guarantee severance pay only for direct employees on permanent contracts. This covered 409 out of 570 employees. However, no measures were taken to protect workers employed by subcontractors, who suddenly found themselves exposed to a precarious market.
While some suppliers have found new clients, there are no long-term employment guarantees for 19 factories employing 1,498 workers, including 1,151 women. All of them worked for Benetton.
Open questions to Benetton:
What is the Benetton Group doing to protect workers throughout its supply chain?
Does the Benetton Group have a concrete plan to mitigate potential damages resulting from the withdrawal of production from Croatia and Tunisia?
The Case of Croatia: The Obligation to Redress Damages
In Croatia, Benetton first drastically reduced orders to one of its 12 suppliers, the Leonarda d.o.o. factory in Daruvar, forcing it to close. This left thirty workers unemployed. Subsequently, Benetton also closed its own factory, Benetton Tekstil in Osijek, leading to further mass layoffs.
While the workers at Benetton Osijek have been compensated to some extent (receiving at least the legal minimum severance pay), the workers from Leonarda are still waiting for their payments. Novi sindikat demands that Benetton fulfill its obligations and settle the debts owed to the workers who lost their jobs.
Clean Clothes Campaign Appeal:
We call on the Benetton Group to act with transparency and responsibility in the restructuring
of its supply chain, and to ensure:
- The protection of workers’ rights in all factories across its global supply chain, regardless of the country;
- A guarantee of responsible business termination, where applicable, by involving social partners and reaching formal agreements with trade unions;
- The payment of severance to all supplier workers affected by these closures.
Industrial and financial decisions must not take precedence over human dignity, nor should they ignore the impact they create throughout the entire supply chain.
The new European Corporate Sustainability Due Diligence Directive (CSDDD) represents a decisive step in this direction: it requires companies to monitor, prevent, and address risks related to human rights, working conditions, and environmental sustainability—not only at corporate headquarters but throughout their entire supplier network.
In the textile sector, this means looking beyond the label: from cotton fields and dyeing factories to garment assembly, warehouses, and distribution. However, this achievement is now under threat. The so-called ‘Omnibus’ package proposed by the European Commission could hollow out the directive, stripping away environmental protections and leaving millions of workers along global supply chains vulnerable,” said Deborah Lucchetti, National Coordinator of the Clean Clothes Campaign Italy.
The full documentary on Benetton is available: here.
The article was originally published on May 20, 2025, on the website of the Italian branch of the Clean Clothes Campaign (CCC) under the title: ‘Benetton: un impero globale, ma le responsabilità non hanno confini’.
