Hero or troublemaker? Milan prosecutor shakes up Italy's labor practices

MILAN — A Milan prosecutor’s labor investigations have pushed companies to provide stronger employment protections to more than 60,000 workers and helped recover more than €1 billion ($1.1 billion) in unpaid taxes, but the efforts have also fueled debate over whether Italy’s judiciary is expanding beyond its traditional role.

Supporters of prosecutor Paolo Storari say his work has exposed long-standing labor exploitation in the euro zone’s third-largest economy, helping vulnerable workers secure more stable employment while forcing companies to reconsider their business practices.

Critics, however, argue that Storari has exceeded the limits of judicial authority by using criminal law measures to influence labor policies and disrupt operations in important sectors of the economy.

The 60-year-old prosecutor, known for his energetic approach, is currently investigating alleged labor abuses linked to the construction of a new U.S. consulate in Milan. The case is among dozens of investigations launched over the past five years that have reshaped the way Italian companies manage labor practices and supply chains.

Investigations span fashion, logistics and food delivery

The investigations began in 2021 in the logistics sector before expanding into fashion, private security, food delivery, large-scale retail and construction. Prosecutors uncovered a widespread system involving subcontracting networks, temporary cooperatives and labor-supply companies that allegedly reduced costs while weakening worker protections.

According to data from the Milan prosecutor’s office reviewed by Reuters, the investigations since 2023 have resulted in the hiring or regularization of 61,580 workers.

Authorities have also recovered €1.134 billion ($1.30 billion) in value-added tax (VAT) and an additional €63 million in unpaid social security contributions.

However, some business leaders have criticized the investigations, particularly those involving major luxury brands, warning that they could damage Italy’s global reputation.

Diego Della Valle, founder and chairman of Italian luxury group Tod’s, said last year that questioning the quality and standards of Italian-made products could cause significant harm to the country’s image after Storari investigated alleged labor abuses among Tod’s suppliers.

Tod’s has since committed to strengthening oversight of its supply chain.

Storari’s approach has also drawn criticism from legal experts and academics who argue that his use of preventive seizures and judicial administration measures — originally intended to protect companies affected by organized crime — may be too restrictive.

Critics say that requiring companies to conduct extensive reviews of contractors creates a form of responsibility that is not clearly established under Italy’s criminal or labor laws.

A key feature of Storari’s investigations has been the shift in focus from factories and subcontractors directly accused of exploiting workers to the larger companies that benefit from those supply chains.

Prosecutor adapts methods across industries

Storari, who previously worked for many years in an anti-Mafia unit in Milan, rejects claims that he is stretching legal interpretations. He said his actions have consistently received approval from judges in Milan.

“We have simply started using rules that had not been applied in this field,” Storari said during a conference at the Milan courthouse in November. He added that the law should serve as a tool for addressing problems.

Following this approach, Storari has adjusted his legal strategies depending on the industry involved.

In the fashion sector, judicial administration orders have been used to reform subcontracted workshops accused of exploiting workers. In logistics and retail, prosecutors have relied on tax fraud laws to target cooperatives accused of avoiding VAT payments and social security obligations.

Despite the criticism, the investigations have produced significant changes.

Several major fashion companies, including Dolce & Gabbana and Gucci, have engaged with prosecutors to review their business structures and improve supply chain monitoring. In logistics, companies have hired thousands of workers who previously operated through cooperatives under what prosecutors described as exploitative conditions.

Security companies and food delivery platforms have also been pressured to directly employ workers or improve compensation, demonstrating that labor protections can be enforced even in industries built around complex subcontracting systems and intense cost competition.

“Receiving calls from people who thank us because they finally have a salary and a job that allows them to live with dignity is the only real satisfaction in our work,” a member of Storari’s prosecuting team quoted him as saying.

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-Reporting by Emilio Parodi; Editing by Gavin Jones and Keith Weir/Reuters