New report unveils gender disparities in Italian fashion manufacturing industry

Non-profit Global Fashion Agenda and accountancy firm PwC Italy have published a preliminary research report that provides a detailed assessment of pay disparities in the Italian fashion sector. Titled “Unpacking Pay Equity in Fashion: Italy”, the report was developed with support from the Italian fashion association Camera Nazionale della Moda Italiana (CNMI).

It is based on research conducted through 25 interviews with leading fashion brands and a survey involving 105 Italian fashion manufacturing companies and manufacturers, as well as research by GFA and the findings of the multi-stakeholder project “Fashion Industry Target Consultation”, led by GFA and the United Nations Environment Programme (UNEP), and roundtable discussions.

The analysis explores the current perceptions and challenges regarding pay equity within one of Europe’s most influential fashion industries and also sheds light on women’s participation in the work force, especially after having children. The report also includes a call to action and practical guidance on how brands, manufacturers and stakeholders can begin to address pay disparities and foster greater equality across the sector.

Women’s share in labour market low across all sectors

One of the report’s key findings is that women's participation in the Italian labour market is generally low in all sectors: In 2023, the employment rate for women was 52.5 percent, while that for men stood at 70.4 percent (with wide regional variations). In the European context, that means it is slightly lower than for women in Greece (52.8 percent) and Romania (54.3 percent) and much lower than for women in the Netherlands (78.9 percent) and Sweden (75.6 percent).

However, there is disparity when it comes to the skill and management level of the work: “The fashion manufacturing industry differs partially from the data observed at a national level, as it is characterised by an over-participation of women, especially in non-management roles,” finds the report.

While there has been an increasing focus on gender inequalities in Italy since 2020 that has led to more policies and laws supporting the presence of so-called “pink quotas” in leadership positions and an increase in the representation of women on the boards of major Italian fashion brands, from 21.3 percent in 2020 to 27 percent in 2023, their representation is just about one fourth.

When asked about their perception of the gender pay gap, only 20 percent of Italian fashion manufacturers reported pay inequality in their companies, most of which are large. However, only one fifth of companies monitor and report gender pay inequalities, which are the first steps towards a more complete understanding and awareness of the problem.

Women who work take less pay home than men

The survey found that the perception of wage inequality varies depending on the role within a company: human resources (HR) and diversity, equity and inclusion (DE&I) functions, which deal with these issues more frequently than others, tend to be more aware of wage discrimination. Two thirds of the HR and half of the DE&I function respondents clearly state that there were pay inequalities to the disadvantage of women, while only one fifth of CEOs agree with this view.

While all large companies surveyed claim to have at least one instrument to ensure equal pay for women and men, it should be noted that more than 80 percent of the Italian fashion manufacturing industry is made up of micro enterprises, many of which are exempt from the current EU and Italian regulations on equal pay.

However, many of them are part of supply chains for large Italian and European brands that will have to comply with these regulations. Despite their size, 43 percent of micro enterprises claim to have at least one policy in place to ensure gender pay equity, followed by small enterprises (27 percent) and medium-sized enterprises (14 percent). Interestingly, half of the companies surveyed are considering applying for gender equality certification.

“Only half of large companies and less than half of micro and SME manufacturers monitor and report on wage inequality. There is an urgent need for more transparency and standardised tools throughout the value chain, along with the development and integration of responsible purchasing practices throughout the due diligence process,” comments PwC Italia partner Erika Andreetta in a press release.

Motherhood affects career progression

A survey conducted by PwC Italy between April and May 2024 on a sample of 500 working (or former working) women between 25 and 49 years old with at least one child showed that the main impact maternity had on work was reduced working hours and job loss.

This tallies with the survey: According to 43 percent of the respondents, motherhood negatively affects women's career progression. Although 60 percent of the companies surveyed offer parenting support such as is flexibility (in 38 percent of companies), only 5 percent provide additional paternity leave or crèches. “These results indicate a lack of recognition for parenting needs, which is rooted in a gender bias regarding the division of family and domestic care responsibilities,” sums up the report.

What can be done?

Though the report took a look at the Italian fashion manufacturing sector, parallels can be seen in other countries and sectors as well. Thus, the following four recommendations for action suggested in the report should have wide applicability.

1. Shift of perspective: The report recommends fostering an inclusive workplace culture that values parenthood and supports flexible working arrangements to accommodate family responsibilities.

2. Increased transparency: Further, full transparency and traceability should be ensured across the supply chain, particularly among subcontractors, to guarantee fair wages and ethical labour practices.

3. Standardised tools: The report recommends the development of adaptable tools and methodologies for pay equity assessments that reflect the unique context, in this case the Italian fashion manufacturing industry, to foster heightened adoption and enhanced insight into suppliers' wage structures.

4. Unified approach: Brands, trade associations and manufacturers should collaborate to unify and streamline the process, to ensure coherence in addressing this issue and avoid duplicating efforts.

“Addressing the gender pay gap in Italy, and the wider fashion industry, requires a unified commitment from all stakeholders. The industry must prioritise transparency, equal opportunities and fair compensation across the entire value chain. By adopting standardised tools and approaches and influencing cultural values, I believe the Italian fashion industry can become a catalyst for change,” sums up Global Fashion Agenda CEO Federica Marchionni.