FAIR CYS Long Report ENG Nov EDITION

A TOUGH STORY
OF LEATHER
A journey into the tanning industry
via the Santa Croce District
CHANGE
YOUR SHOES
THE POLITICAL STORY
BEHIND THIS REPORT
This report was produced as part of “Change published in December 2015 in our report:
Your Shoes” (CYS), a three-year Development “A tough story of leather”.
Education and Awareness Raising (DEAR)
In January 2016, the CYS consortium was
project on social and environmental issues,
informed by DG DEVCO that two European
organized by 15 European and 3 Asian
business associations, the European
organizations, with the financial support of the
Confederation of the Footwear Industry (CEC)
European Commission’s Directorate-General for
and the European Confederation of the Leather
International Cooperation and Development (DG
Industry (COTANCE), had complained to DG
DEVCO)1 Looking primarily at leather shoes,
GROWTH (the EC department for economic
the aim of the project is: “consumers become
and industrial development) about the report’s
more aware that the lifestyle choices come with
contents. Therefore, a clarification meeting was
responsibilities, and through advocacy enhanced
held in Brussels on February 18th and saw the
by better and relevant information they can
participation not only of CYS and DG DEVCO,
instigate policy change that, in the interest of
but also unexpectedly of DG GROWTH, DG
human rights, will ultimately improve the working
Employment, CEC, COTANCE and UNIC (Italian
conditions and well-being of those further down
Tanners Association), accompanied by lawyers
the production chain in the shoe industry”.
from the law firm Fratini-Vergano.
Among other activities, the project includes
During the meeting, the representatives of
research on social and environmental conditions
UNIC only advanced vague objections against
in the global shoe production chain, starting from
the report, but concluded by announcing they
tanneries, in countries such as China, India and
would take legal action if it was not withdrawn. At
Indonesia, as well as Turkey, Eastern Europe and
the same time DG DEVCO and DG GROWTH
Italy. The latter plays an important productive
officials were criticizing the report by claiming
role both in tanning and footwear sectors. Our
that its contents were out of the scope of the
research focuses mainly on: wages; health risks
project. The CYS delegation agreed, as an act of
of chromium VI; financial investments and profits.
good will, to temporarily withdraw the report, to
This information provides the basis for activities
answer the criticisms put in writing by UNIC and
aimed at raising awareness of European citizens,
to wait for a second meeting aimed at publicly
through the publication of materials and media
debating the outcomes of the report, before
campaigns. The research also supports the
publishing it again.
lobby work necessary to solve cases of human
rights violations, to meet the project’s overall On March 4th UNIC sent its written criticisms and
objective to improve the working conditions of CYS replied by March 21st. CYS provided UNIC,
the most vulnerable workers, wherever they CEC, COTANCE and the European Commission
produce our shoes in the global supply chain. with a detailed written statement in reaction to
the criticisms raised against the report “A tough
In Italy the research started with an
story of leather” and outlined all the relevant
investigation into tanning, the first stage of the
sources. Furthermore, CYS proposed to organize
production process of leather shoes. The Santa
a public meeting in Geneva on April 28th with
Croce district in Tuscany was identified as
COTANCE, including international organizations
the research area, as it represents a strategic
like ILO and trade unions, but COTANCE refused
centre for the global supply chain. Once the
to participate. Meanwhile Südwind, the CYS
study had been completed, the research was
consortium leading agency, was informed by DG
1 European Year for Development (EYD) 2015 – Starting DEVCO officials that, due to the problem with the
point of the way to an ethical and sustainable shoe supply chain report, the EC grant contract would be reviewed
(DCI-NSAED/2014/ 353-107)
and could also be terminated. Furthermore, DG concerning the report from that moment on,
DEVCO said that a second meeting in Brussels, started negatively affecting the EC’s decision to
again behind closed doors, would be necessary transfer the financial instalments for the project.
to discuss the issue. The project’s consortium, in its second year, was
waiting for the 2016 instalment, which, according
The second meeting took place on May 2nd,
to the contract, was expected by May 31st. On
in the DG GROWTH building, and the same
May 4th the consortium was informed via e-mail
representatives who met on February 18th were
that the instalment was sine die suspended,
involved. While the industry’s representatives
as project expenses in 2015 regarding the Italy
claimed that the report had to be definitively
report were under examination. This put all
withdrawn, because it was harmful to their
the NGOs in the consortium in hard financial
image, and hence to the economic interest of
difficulties and, interpreting the suspension
the European tanning sector, the European
as an attempt to impose a block on the Italian
Commission officials maintained that the report
report, CYS informed a group of Members of the
was out of the scope of the project because the
European Parliament about these developments.
research was not supposed to analyse poor
working conditions in Europe, but only those in On June 15th, 26 Members of the European
non-European countries. Instead, if we wanted Parliament sent Neven Mimica, Commissioner
to deal with Europe, we should have referred for International Cooperation and Development,
only to best practices, they said. Furthermore a letter asking for an explanation of the
UNIC, CEC and COTANCE demanded that instalment’s suspension4. As a consequence,
CYS stop the independent media reporting on June 29th 90% of the 2016 instalment was
about exploitative working conditions in Italy released, while the remaining 10% was retained
and even ask them to delete already published pending verification of compliance with the
reports and TV broadcasts from online media contractual conditions, as specified by Neven
platforms, such as several TV broadcasts about Mimica’s reply. We have never received any
working conditions in the leather and shoe formal notification from the EC of any contractual
industry produced by the German TV station violation, but, according to information
ARD. Additionally CYS was urged to delete collected through various informal contacts, the
all articles and postings from social media consortium realized that what is at stake is the
channels dealing with or referring to the findings Italian report and its political relevance.
of the report “A tough story of leather”. CYS
In order to avoid further interferences in the
rejected both requests raised by UNIC, CEC
dissemination of the report “A tough story of
and COTANCE. As an alternative, CYS offered
leather”, to release the remaining part of the
the industry representatives a dialogue with
second year instalment, and to safeguard the
external moderation by a elder statesman in a
development of all the CYS planned activities,
broad multistakeholder format, but that offer was
the consortium has decided to remove the EU
unfortunately refused.
logo from the cover of the report, to pay for all
Since CYS hadn’t received any specific associated costs from its organizations’ own
confutation of data and findings and since no funds, and to republish it again in all countries
arguments proving that the report was outside of the CYS partnership with CYS-logo and with
the scope of the contract had been given to all partners’ logos. At the same time, strongly
us, on May 3rd the report was put back online condemning any form of pressure exerted on
together with the criticism expressed by UNIC2 the European Commission by economic lobbies,
and CYS’ replies3. To our dismay, the controversy the CYS encourages all political parties, unions
and social forces to monitor such lobbying and
2 http://www.abitipuliti.org/changeyourshoes/wp-content/uploads/
sites/3/2015/12/UNIC_comments_353-107-Feb16-Final-2.pdf to ensure that the European Commission is not
3 http://www.abitipuliti.org/changeyourshoes/wp-content/ subjugated to those forces, instead promoting
uploads/sites/3/2015/12/CYS-Answers_to_UNIC.pdf
4 For any information about the initiative of the members of the and protecting human rights worldwide.
European Parliament, please contact the office of Mr Cofferati MEP
- http://www.europarl.europa.eu/meps/it/96915/SERGIO+GAETA-
NO_COFFERATI_home.html
Table of Contents
2
PART ONE: The International Context 3
1.1. The animal issue 3
1.2. From livestock farming to the production of raw skins 5
1.3. From production to exportation of raw skins 6
1.4. Processing and trading of semi-processed leather 8
1.5. An attempted summary 12
PART TWO: The Italian Context 14
2.1. The sector in terms of size and geographical distribution 14
2.2. The raw material 15
2.3. Cases of vertical integration 16
2.4. Attempts to multinationalise 18
2.5. The emergence of the middlemen 19
PART THREE: The Santa Croce District 21
3.1. Organisational structure and employment 21
3.2. Size and ownership of companies 22
3.3. Diversification and international expansion 23
3.4. Procurement, production and sales 24
3.5. Methods of employment and illegal work 26
3.6. The lives lived by immigrants 30
3.7. Salaries and working hours 34
3.8. Accidents 36
3.9. Occupational diseases 39
3.10. The problem of wastes 42
CHANGE YOUR SHOES

PART ONE: The International Context
3
1.1. The animal issue
The journey of a leather shoe is long and that has an estimated total turnover in excess
arduous, because it is beset with numerous of a trillion dollars a year. So, essentially, an
problems, both environmental and social. The entire world would collapse without leather.
leather used to make shoes is obtained from A quick flick through any journal devoted to the
the hide covering the bodies of animals, not leather sector shows that there is a general
those living in the wild but, rather, animals complaint by owners of tanneries about the
farmed under human control. So the journey of dearth of raw material. So the more likely
a pair of shoes can start from a village in the scenario is two sectors, the meat industry
Sahel, a ranch in Texas or a pasture carved and the leather industry, working together as
out from a patch of the Amazon rainforest. allies to create growth in livestock farming
Leather production represents a turnover of and slaughtering. After all, the largest leather
50 billion dollars each year and is closely tied producer is JBS, a Brazilian multinational
to the red meat industry, which itself has an specialised in those two sectors. With 185,000
export turnover of around 100 billion dollars employees and annual turnover of 50 billion
annually, not including the value of derived dollars, the company slaughters 100,000
products such as milk and wool.1
Entities in the tanning industry claim to play Figure 1. Production of raw skins by type (in
percent of total global skin production – 2010)
a positive environmental role, because they
remove a waste product generated by the
Goat Other
meat industry, much in the way of scavengers. 11% 1%
But the quantities of money surrounding the Pork

11%
leather industry are so substantial that it is
difficult to see the industry as one that relies
on the production of leftovers by other sectors.
Sheep
Suffice it to say that this industry represents 15%
the foundation for the construction of an
industrial empire, closely linked to luxury Bovine
66%
goods, made up of shoes, handbags, belts,
wallets, furniture and vehicle upholstery, etc., Source: United Nations Industrial Development Organization,
Future trends in the World Leather and Leather Products
1 http://www.euroleather.com/ and http://www.trademap.org
Industry and Trade, 2010, p. 17
CHANGE YOUR SHOES

cattle, 70,000 pigs and 25,000 lambs each day, Almost 90% of the raw skins produced
from which it obtains meat and skins that it tans throughout the world originate from four types
4
in 26 tanneries it owns, distributed in various of mammals: cattle, sheep, pigs and goats. But
countries around the world, including Brazil, the bulk are from cattle, which alone provide
Argentina, China, Germany, Italy, Mexico, two-thirds of global production. We will therefore
South Africa, Vietnam and Uruguay. focus solely on the production chain for cow hide.
Box 1. The environmental impact of farming
In times of environmental crisis Cargill, ADM and Bunge. So, to the planet is disappearing so we
such as we are now experiencing, conclude, almost one third of the can raise livestock. The French
even the livestock sector is under 14 billion hectares of arable land association Envol Vert estimates
scrutiny because of the water it available throughout the world is that cattle farming intended for
consumes, the food it uses, the used to obtain food to be given as the production of meat and lea-
land it occupies and the wastes it feed to animals. If we also con- ther contributes at a rate of 65%
produces. sider the minor ingredients used to deforestation of the Amazon:
It takes 15,000 litres (15 cubic in feed mixes for animals, such the pasturelands are located pri-
metres) of water to produce one as straw, beets and other plants, marily in a fifty-kilometre-wide
kilo of beef. In practice, this equa- we can calculate that three-quar- strip along the main roads passing
tes to a small swimming pool full ters of the world’s arable land is through the forest.
of water for four steaks. These involved in some way in the pro- Forests have an incredibly impor-
numbers seem impossible, until duction of animal foodstuffs. And tant role for a number of reasons,
we look more closely at what an if this were not enough, even the not least because they combat
animal eats during its life cycle: forests are being sacrificed on climate change as a result of their
1,300 kilos of grain and 7,200 the altar of livestock farming. Bra- ability to absorb carbon dioxide.
kilos of fodder. It takes a gre- zil, for example, is home to 211 And climate change is another
at deal of water just to grow all million head of cattle, a national specific area in which the finger
this stuff. We also need 24 cubic total exceeded only by the cor- is being pointed at the farming
metres of water to keep the ani- responding figure for India. The sector, because livestock con-
mal watered and 7 cubic metres to amount of land required to raise tributes to the production of gre-
keep it clean. So, to produce just all of these animals is enormous, enhouse gases. The extent of this
one kilo of beef, it takes 6.5 kilos and attention has been focussing contribution is still being debated,
of grain, 36 kilos of fodder and 15 on the Amazon rainforest as a because not everyone uses the
cubic metres of water. means of providing the necessary same criteria. Depending on the
On a global scale, more than 40% hectares. factors considered, the figure
of annual cereal production is A study conducted by the Brazi- varies between 16% and 32%.
used to feed livestock, resulting in lian Instituto Nacional de Pesqui- The FAO claims that animals con-
a total of almost 800 million ton- sas Espaciais (INPE) determined tribute 14.5% to the production of
nes of grain, plus 250 million ton- that only 4.9% of the deforested greenhouse gases, but the cal-
nes of oil seeds, primarily soya. land in Brazil is intended for agri- culation used takes into account
In many regions, these are culti- culture. And while 21% is unused only gases associated with animal
vated as single-crop farming and pending a decision as to how it will excrement. If we were to include
exported throughout the world by be used, 62.2% is used as pastu- those linked to the production of
powerful multinationals such as re. So the largest rainforest on grain, the figure would double.
Reference texts: Meat Atlas, published in 2014 by Heinrich Böll Stiftung and Friends of the Earth – Europe; Le cuir tanne
la fôret, published in 2013 by Envol Vert.
CHANGE YOUR SHOES

1.2. From livestock farming to the production of raw skins
5
The country with the world’s largest population Production of meat and production of leather
of cattle is India, but this nation only ranks go hand in hand, so much so that the rankings
fifth if we focus on the meat produced. The for leather production coincide almost exactly
United States is the country with the highest with those for meat production. There is merely
beef and veal production, but it ranks only a slight imbalance in regard to China, for
third in terms of exports, as a result of its reasons that have not been clearly established.
large-scale domestic consumption. Table 1
provides a summary of the largest nations in Table 2. The five leading producers of raw
terms of beef and veal production, domestic Country Usa Brazil China UE India
consumption and export. It is somewhat Production 834 832 760 668 479
surprising to see that India is the world’s

cowhides in thousand tonnes (2013)
largest exporter of beef and veal. Source: FAO, World statistical compendium for raw
hides and skins, leather and leather footwear 1998-
2014, 2015
Table 1. Production, domestic consumption and
export of beef and veal in thousand tonnes (2014)
Figure 2. Leading producers of raw cowhides
Domestic by weight (in % of total world production, 2013)
Country Production Export
consumption
Usa 11.078 11.244 1.167 USA
12,7%
Brazil 9.723 7.896 1.909
UE 7.410 7.480 301
Others
China 6.890 7.297 30 37,3% Brazil
12,7%
India 4.125 2.043 2.082
Argentina 2.700 2.503 197
Australia 2.595 790 1.851
TOTAL 59.690 57.629 10.003 China
11,6%
Source: United States Department of Agriculture -
Australia
Foreign Agricultural Service, Livestock and Poultry: 3,1%
Argentina UE
World Markets and Trade, April 2015 (http://apps.fas. India 10,2%
5,3%
usda.gov/psdonline/circulars/livestock_poultry.pdf); 7,3%
http://www.indexmundi.com
Source: drawn from FAO data, World statistical
compendium for raw hides and skins, leather and
leather footwear 1998-2014, 2015
CHANGE YOUR SHOES

1.3. From production to exportation of raw skins
6
We should expect to see an alignment other EU nations. For example, France, which
between the largest producers and the along with Germany and the Netherlands,
largest exporters of cowhides. But instead, is among the largest producers of cattle in
we have found that the largest producer, Europe, exports almost 80% of its raw hides
Brazil, contributes only 0.34% of global production to Italy. In 2013, the EU had a small
exports. Other significant producers, such as trade surplus, but an analysis of the period
Argentina and India, provide 0.15% and 0.06% from 2007 to 2013 shows years with trade
respectively of the total quantity of raw skins deficits. This suggests that the EU can no
traded throughout the world. longer be certain of its self-sufficiency.
Figure 3. Leading exporters of raw cowhides Table 3. Change in EU imports-exports of raw

by weight (in % of total global exports, 2013) cowhides in thousand tonnes
Others
12,8% Anno Importazioni Esportazioni Saldo
Colombia 1,3% 2007 871 814 -57
Viet Nam 1,5% 2008 779 871 92
China 3,0% 2009 674 891 217
UE
Canada 42,3% 2010 1144 1104 -40
4,0%
2011 1070 1052 -18
Australia 2012 976 1053 77
6,7%
2013 1068 1123 55
Source: FAO, World statistical compendium for raw hides

USA and skins, leather and leather footwear 1998-2014, 2015
28,4%
Source: drawn from FAO data, World statistical Figure 4 provides a summary of the weight
of each country (or area) in terms of the
global production and exportation of raw
Of the major producers of raw leather, only leather. It is clear that the United States,
the European Union and the United States the EU and Australia (‘the North of the
are also major exporters, and together, they world’) are major producers and exporters
supply 70% of all raw cowhides available at the same time, while Brazil, China and
in international markets. We should note, India (‘the South of the world’) are major
however, that almost all EU exports are to producers but minor exporters.
CHANGE YOUR SHOES

Figure 4. Production and exporting of raw Figure 5. Change in production of raw skins
cowhides (in % of global totals, 2013) (cattle, sheep and goat) in the South and the
North of the world, between 2004 and 2013 7
0,0 10,0 20,0 30,0 40,0 50,0 (2004=100)
125
Usa 120
115
Brazil 110
105
China 100
95
Ue 90
85
India 80
75
Argentina 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
South North
Australia
Others
Production
Export
Figure 6. Change in exportation of raw skins
(cattle, sheep and goat) in the South and the
North of the world, between 2004 and 2013
(2004=100)
140
In the period from 2000 to 2015, the countries 120
100
of the South have increased their annual 80
60
production of raw cowhides by 2%, while
40
the countries of the North have reduced it 20
0
by 1.1%.2 The trend therefore indicates a 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
South North
gradual increase in the share of production
by countries in the South, while the North Source: drawn from FAO data, World statistical
is progressively reducing its commitment to
an activity that poses certain environmental
issues. But the increased production by the Despite the fact that the emerging nations
South is not being reflected by increased produce almost double the quantity of raw
exports, as a result of the decision to process leather produced by the richer nations,
the skins produced domestically wherever international trade flows move from the latter
possible. This is a situation that also works for to the former. The emerging nations are net
the North, which is happy to move the harmful importers of raw leather, led by China, which
phases of the process outside its own borders. imports vastly more than it exports: in 2013,
the country recorded more than one million
2 FAO, World statistical compendium for raw hides and
skins, leather and leather footwear 1998-2014, 2015
CHANGE YOUR SHOES

tonnes of imports compared to a little less for three essential reasons: 1. It requires
than 9,000 tonnes of exports. technology that is relatively cheap, 2. It is a type
8
of production activity that advanced nations
Table 4. Global structure of production are tending to divest themselves of because of
and trade of raw skins, in thousand tonnes
the substantial pollution that it generates, and
(average 2011-2013)
3. It is a sector that precedes the development
Foreign trade Total
Production
balance availability of another type of production activity typical
Emerging +1251,9 of the process of industrialisation, namely the
4214,4 5455,8
nations (net import)
Richest -1010,8 manufacture of shoes.
2240,6 1230,2
nations (net export)
The exception to this is Italy, which has a
Source: FAO, World statistical compendium for raw hides long tradition of tanning and shoe production,
and skins, leather and leather footwear 1998-2014, 2015
and continues to be heavily involved in both
In fact, tanning is one of the key areas for sectors, despite the challenges generated by
development in newly industrialised nations, globalisation.
1.4. Processing and trading of semi-processed leather
It is a known fact that many nations in the Table 5. Duties on exports of hides and
subsequent processing (in % on prices,
South of the world want to keep their raw skin
January 2007)
production in-country in order to promote the
Manifactured
Wet Leather Finished products
development of the domestic tanning industry, Hides
blue Crust Leather (Leather
shoes)
with the dual objective of generating products
Argentina 10 15 5 5 5
for export with greater added value and of Brazil 9 9 0 0 0
India 60 60 60 0 0
creating jobs. Kenya 15 0 0 0 0
Pakistan 20 20 0 0 0
To ensure this type of outcome, certain Paraguay 12 0 0 0 0
Russia 15 10 10 0 0
countries have imposed restrictions on
Tanzania 20 0 0 0 0
exports, which can involve duties, quotas and Uganda 20 0 0 0 0
Uruguay 8 8 0 0 0
bans. We have not found any full studies on
these mechanisms, so the map drawn up in Source: United Nations Industrial Development
Organization, Future trends in the World Leather and
2007 by Unido on export duties is therefore
Leather Products Industry and Trade, 2010, p. 109
particularly important. A summary of this
information is provided below. The limited information found in OECD
documents and obtained from directly involved
Governments shows that 17 countries have
CHANGE YOUR SHOES

export restrictions on raw hides, and they which applies a surcharge of 0.5 dollars for
are prepared to review their policies on an each kilo of raw skin exported, and sometimes
9
ongoing basis given the changes in the in the form of a percentage value, as Angola
domestic and international context.3 For and Indonesia do, imposing rates of 20% and
example, India has introduced an additional 25% respectively.5 Among the countries that
15% duty on vegetable-tanned leather.4 And are most focused on preventing exports of raw
while Nigeria has simply imposed a ban on skins, Kenya has been gradually increasing its
the export of raw skins, other countries have customs duties since 2007, up to 80%. This
introduced their own duties, sometimes in the model has since been adopted by Tanzania,
form of a fixed duty, as is the case with Turkey, which initially increased duties to 60% and is
now also considering raising them to 80%.
3 Jeonghoi Kim, Recent trends in export restrictions,
OECD Trade Policy Paper 101, 19 July 2010
4 ‘India: leather industry under threat’, 1 August
2013 (http://www.leathermag.com/news/
newsindia-leather-industry-under-threat) 5 Jeonghoi Kim, op. cit.
Box 2. Kenya’s reasons and opposition from Europe
The Kenyan Government’s deci- country for initial tanning has wishes. Developed as econo-
sion to increase the export duty on therefore risen from 56% in 2004 mic cooperation agreements for
raw skins has created problems to 96%-98% in 2010. Between nations in Africa, the Caribbean
in relations with the European 2003 and 2007, local production and the Pacific, former European
Union, which was seeking to cre- of semi-processed and finished colonies, EPAs are actually com-
ate a free trade area with Africa. skins essentially increased four- mercial agreements that Europe
For the African nation, the live- fold, with the creation of 1,000 is trying to use to protect its own
stock sector represents 10%-15% direct jobs and 6,000 indirect interests. With regard to export
of the GDP. Raw skins were tra- jobs, and improved salaries for duties, the treaty lays down an
ditionally used to supply tanneries the 40,000 workers employed in obligation for prior authorisation
abroad and the associated added the sector. Other African nations, of the EPA by the Council, of whi-
value for Kenya was minimal. In such as Tanzania and Uganda, ch the European Union obviously
2007, the Government in Nairo- have followed Kenya’s example. forms a part, and the EU thus has
bi therefore decided to increase The European Union does not a real power of veto. And while the
duties on exports of raw skins to look favourably on this policy, application can be made only for
40%, as part of a specific eco- because it makes it more difficult a limited number of products, the
nomic development programme for its Member States with strong duties are in any case reviewed
named Vision 2030 Programme. tanning industries to obtain raw after 24 months of application.
In 2015, these duties were in fact leather. It is therefore using the The issue of export duties is one
increased to 80%. mechanism of Economic Part- of the points preventing a number
The quantity of the total pro- nership Agreements (EPA) as a of States from signing the agree-
duction of skins remaining in the blackmailing tool to impose its ment.
Reference text: Mark Curtis, Developing the Leather Sector in Kenya through Export Taxes: The Benefits of Defying the
EU 2010, Kenya Business Tax Newsletter. 2015-2016 Budget News, June 2015
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To offer a better understanding of the global Figure 6. Leading exporters of semi-processed
cow and horse hides by weight (in % of total
dynamic, we should emphasise the fact that
global exports, 2014) 10
processing of hides is a very lengthy process Brazil
Others
23,9% 21,9%
that results initially in raw tanned leather,
referred to as wet blue. These hides are no
longer subject to putrefaction processes Australia 1,6%
but nonetheless need further processing Colombia 1,8%
New Zeland 1,9%
before they become finished leathers ready Soth Africa 2% USA
Paraguay 2,8% 16,2%
to be transformed into shoes, handbags or Taipei 3,4%
Hong Kong 4,1%
upholstery for furniture or vehicles. Initial Argentina 5,1% EU
15,3%
processing of the wet blue produces the
crust, which has received an initial colour Source: http://www.trademap.org (International Trade
Center)
base. The final phase of the process is the
finishing, which provides the crust with the Table 6. Leading exporters of semi-processed
cow and horse hides, in tonnes (2014)
exact colour required and various other
external characteristics. Brazil 405.171
Usa 299.392
There are certain countries that produce
Ue 283.027 (Italy: 183.915)
primarily finished leathers, and others
Argentina 95.093
primarily semi-processed. The available Hong Kong 75.896
statistics do not provide clear data in this Taipei 63.326

Paraguay 52.145
regard, but an analysis of exports shows
South Africa 36.727
that the largest exporters of semi-processed
leather are Brazil, the United States and the Source: http://www.trademap.org (International Trade
Center)
European Union, with Italy being a leading
contributor. Approximately two-thirds of the wet blue
exported by the EU is produced in Italy,
and almost half the total quantity of semi-
processed leather produced in Europe
(129,841 tonnes) is intended for China. This
could suggest that the EU has accepted
the role of a producer of semi-processed
leather. But to understand the actual position
of the EU, we also need to look at imports.
And here we see that the EU imports almost
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double what it exports. Here again, the major Table 7. Leading importers of semi-processed
cow and horse hides, in tonnes (2014)
contributor is Italy, which is the destination
11
for 76% of European imports, primarily from Cina 760.417
Brazil and the United States. We can therefore UE 499.262 (Italy: 380.524)
Viet Nam 172.643
conclude that the EU is a major net importer
Taipei 91.384
of wet blue and that its intention is to produce Hong Kong 81.624
finished leather, because this is the area South Corea 46.040
where the greatest profits can be achieved. Spain 40.001

Thailand 39.514
Source: http://www.trademap.org (International Trade

Center)
Box 3. Focus on Brazil
With almost 10 million tonnes Figure 7. Change in Brazilian exports of semi-processed cow
of beef and veal produced each hides and principal markets, in thousand tonnes (2010-2014)
year, Brazil is the world’s number 250 450
2 in terms of production and con- 400
sumption of beef and veal, beaten 200 350
only by the United States. It had 300
150
also been the world’s leading 250
exporter, although it was surpas- 200
100
sed in 2013 by India. 150
Brazil is the second largest 50 100
country in the world in terms of 50
production of raw hides, but has 0 0
2010 2011 2012 2013 2014
a limited role as an exporter,
because it has chosen instead to China Italy Viet Nam
develop the local tanning industry, Hong Kong Taipei Total
above all in São Paulo and Rio Source: http://www.trademap.org (International Trade Center)
Grande do Sul. In recent years,
the Ministry of Industry and Eco- Leather’ programme, promoted of semi-processed leather, which
nomic Development has commit- by Apex, the export promotion are then sent to the major proces-
ted substantial financial resources agency. This explains Brazil’s sing nations.
to implementation of the ‘Brazilian emergence as a leading exporter
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1.5. An attempted summary
12
Although the statistics are not completely • China is the third-largest producer of raw
satisfactory in all cases, if we put together all leather but does not sell the leather in that
of the available elements, we can assert that: state, processing it instead into finished
leather. The import-export flows show that
• The United States is the leading global despite the large-scale availability of the
producer of raw leather, but the sixth- raw material domestically, the country is not
largest producer of tanned leather. This is a self-sufficient, and is therefore a major net
consequence of the fact that this country sells importer of both raw hides and wet blue.
a large proportion of leather in the raw state. This makes China the leading producer
With regard to tanned leather, the balance of finished leather, but it is nonetheless
of payments is broadly positive for both wet unable to meet the total demand from its
blue and finished leather. This is an indicator own manufacturing industry, especially
that the nation produces leather in quantities the footwear sector, which has developed
that exceed the processing capacity of its domestically. China is therefore also a major
manufacturing industry. A significant portion importer of finished leather.
of its exports are to the major processing
nations: China, Italy, Mexico and Vietnam. • The European Union is the fourth-largest
producer of raw hides, which it uses
• Brazil is the second-largest producer of primarily for the requirements of its own
raw leather but does not sell it in that state, Member States. A comparison of imports
preferring instead to process it and sell it and exports shows a trend towards a loss
in the form of tanned leather, of which it is of self-sufficiency primarily through imports
the world’s third-largest producer. Brazil is from the United States. The tanning industry,
a major net exporter of both wet blue and especially in Italy, is so extensive that it also
finished leather. This is an indicator that it needs to import large quantities of wet blue,
has production capacity for tanned leather mainly from Brazil and the United States.
that is much higher than can be absorbed The result is that the EU is the world’s
by its domestic leather goods manufacturing second-largest producer of tanned leather,
industry, which is however substantial. Most with an export capacity that covers 25%
of its exports go to the major processing of global trade in finished leather. Despite
nations: China, the United States and Italy. its high propensity for exports, the EU still
retains a significant quantity of finished
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leather for use by its own manufacturing of the top positions in terms of exports of
industry, which is particularly concentrated finished leather.
13
on the manufacture of shoes.
• Various other countries, both major producers
• India is the world’s fifth-largest producer of raw hides (such as Kenya, Ethiopia
of raw hides but does not sell the skins in and Pakistan) and otherwise (such as
that state, processing it instead into finished Bangladesh), are seeking to gain ground
leather. Its tanning industry has become so in the processing of leather. Some of these
large that the country is in fact a net importer nations intend merely to increase their
of both raw hides and semi-processed involvement in the various phases of tanning,
leather. Overall, it is the fourth-largest while others have ambitions to move into
producer of tanned leather, and is in one subsequent production of leather goods.
Box 4. Shoes: the final stage
A significant proportion of cow Figure 8. Leading producer nations of leather shoes (in % of
hides produced throughout the world production 2014)
world (slightly more than 50%)
is used for the manufacture of
shoes. The leading producer is Others 30,3
China, which is alone responsi-
ble for almost half of world pro- China 41,5
duction, followed by Mexico, Italy
and Brazil.
Of the almost 4½ billion pairs of
Usa 2,0
shoes produced in 2014 throu-
Viet Nam 3,1
ghout the world, a good 1.8 billion
Indonesia 3,2
were produced by China, and
India 4,1
around 300 million by Mexico. Brazil 4,1 Mexico 6,7
But producing a lot does not auto- Italy 5,0
matically mean earning a lot. Inde-
Source: FAO, World statistical compendium for raw hides and skins, leather
ed, while in terms of quantity, the
and leather footwear 1998-2014, 2015
South exports more than double the
number of pairs of shoes exported South earns 25.6. This is an inevi- €38.40, while the average price of
by the North (1.38 billion compared table result of a phenomenon that the shoes that Italy imported in the
to 673 million), in terms of monetary consumers are experiencing in real same period was less than a third:
value, the situation is reversed: the terms: the average purchase price only €12.50 (source: Ermeneia,
North earns more than 28.6 billion for shoes produced and exported Shoe Report 2015, Assocalzaturi-
dollars from its exports, while the by Italy in 2013-2014 was around fici, 2015).
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PART TWO: The Italian Context
14
2.1. The sector in terms of size and geographical distribution
Italy does not have significant livestock Graph 1. Italian tanning production by
destination (% in volume, 2013)
farming: with six million head of cattle farmed,
Other
this number represents a mere 0.36% of the Clothing and 2,1%
gloves 4,9%
global total. Thus, production of raw skins Automotive
8,8%
is also minimal: only 1% of the world total
Footwear
in 20136. However, the country has a long 43,5%
Furnishing
and rich tradition of tanning, and, in terms of 16,5%
weight, represents 9% of global production of
sole leathers and 7.4% of global production
of tanned cattle hides for all other purposes7.
Leather goods
In monetary terms, this represents 17% of 24,2%
total world production and 30% of exports of Source: UNIC, Report on sustainability 2014
finished leather8.
Total production by the Italian tanning industry, In geographical terms, tanning activity
for the 2013 year, was 5.25 billion euros, is performed mainly in three districts,
intended primarily for footwear (43.5%), which together cover 88.6% of total Italian
leather goods (24.2%) and furniture and production. In order of importance, the districts
furnishings (16.5%). are the following: Arzignano in Veneto, along
the Chiampo Valley in Vicenza Province,
Santa Croce in Tuscany, between the
provinces of Pisa and Florence, and Solofra in
Campania, between Naples and Avellino.
More specifically, the district of Arzignano,
which contributes 52% of the figure for
production, is characterised by standardised
production more oriented towards furniture,
furnishings and vehicle interiors, Santa Croce,
6 Processing of FAO data, World statistical compendium which provides 28% of total production,
for raw hides and skins, leather and leather footwear
1998-2014, 2015. focuses more on high-end production geared
7 Ibid.
8 UNIC, Report on sustainability 2014. towards the footwear and leather goods
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industries, and Solofra, with an 8.6% share Through comparison against other sources, a
of the industry, specialises in the tanning of more likely estimate of the number of people
15
sheep and goat hides. employed in the sector is around 23,000,
In terms of jobs, UNIC, the Italian tanners’ plus several thousand temporary workers not
association, estimates 18,000 workers included in traditional statistics. The majority
employed in the sector, but this is based of those employed (46%) work in Arzignano,
on data provided by regional branches9. followed by Santa Croce with 35.5% and
9 Op. cit.
Solofra with 15%.
2.2. The raw material
The Italian tanning industry has experienced a of leather produced in Italy originate from raw
profound transformation in the last forty years. hides imported from other nations10.
The industry traditionally worked with raw skins,
which were transformed into finished leather Graph 2. Italian finished cow leather by raw
material used (in % weight, 2014)
by the various phases of the tanning process.
But from the 1980s, the initial phases of the Imported raw
cowhides 22%
process were increasingly abandoned, with the
sector focusing more on the final parts of the
process. This change came about as a result Italian raw
cowhides 3%
of two major phenomena. On the one hand,
the introduction of stricter environmental laws
forced companies to make investments that not
all of them wished to make or could sustain. On Imported
wet blue 75%
the other, there was an increase in the price of
raw skins due to increases in customs duties Source: processing of UNIC wet blue data calculated on
the basis of the equivalent in raw hide
charged by producer nations as a strategy to
promote their own tanning industries. The raw hides processed in Italy amounted
This means that, currently, of all cattle leather to 446 626 tonnes for 2014, of which only
produced in Italy, only 25% is obtained
10 According to data provided by UNIC, bovine raw
through domestic processing of raw hides. material used by the Italian tanning industry in 2014 was
made up of 54 000 tonnes of domestic raw hide, 390
The remainder represent merely retanning of 626 tonnes of imported raw hide, and 380 524 tonnes
of imported wet blue. Considering that a tonne of raw
wet blue originating abroad. This figure, added hide produces an average of 288 kilos of wet blue,
we can calculate that the wet blue imported into Italy
to the figure for raw hides, indicates that 97% corresponds to 1 321 263 tonnes of equivalent raw hide.
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54 000 (12%) were of Italian origin. Of the Graph 4: Italian imports of wet blue by origin
(% weight, 2014)
largest foreign suppliers, France and Germany
Brazil 16
together account for 37% of Italian imports. 19,6%
Other
With regard to wet blue, the major suppliers coutries
34,9%
are Brazil and the United States.
USA
Graph 3: Italian imports of raw cowhides by 10,6%
origin (% weight, 2014)
Other France Paraguay

Kenya 8,1%
countries 25,7% 3,9%
34%
Colombia New Zeland
4,6% Russia UK 6,8%
5,2% 6,2%

Centre)
Germany
11,4%
Poland
6% UK 8,8%
Spain
6,7% Hollande
7,5%
Centre)
2.3. Cases of vertical integration
The tanning industry in Italy is part of a long exceptions. An even rarer breed is those
tradition, dating back as far as Roman times. tanneries owned by major industrial groups
So the tanning industry today is backed by focused on controlling the entire production
a history of small craftsman’s workshops cycle, from tanning to manifacturing of leather
that have existed since the 1800s, or even goods, which are rare not only in Italy but
earlier, in areas characterised by abundant worldwide.
watercourses and large-scale animal slaughter Two exceptions are LVMH (the owner of
operations. This may help to explain why the Louis Vuitton) and Kering (the owner of
Italian tanning industry is still dominated by Gucci). Between October 2011 and May
small, family-owned businesses. 2012, LVMH first acquired control of a large
Cases of tanneries owned by large private and famous tannery in Singapore, Heng
companies, recently created, are very rare Long, specialised in crocodile skins, and then
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purchased the even more prestigious French their full potential’14, not only in terms of fine
tanning firm, Les Tanneries Roux, which has leathers but also for bovine skins: ‘the idea
17
been active since 180311. of upstream integration of the production
As for Kering, 2013 saw its acquisition of process was conceived in 2001 following the
France Croco, a tannery specialised in high-profile events associated with mad cow
crocodile skins founded in 1974 in Normandy, disease and foot-and-mouth disease, factors
with approximately 60 employees. And, in that resulted in a scarcity of skins in the
early 2015, Kering announced that it was market and a consequent increase in prices.
intending to invest an additional 15 million Companies like Gucci cannot run the risk of
dollars in France Croco to create another supply shortages or falls in quality’, stated the
establishment near the existing one, with an then Chairman of Gucci, Giacomo Santucci,
even greater production capacity12. Indeed, in 200415. Because of this fact, along with
in 2001, through its control of Gucci, Kering other partners already involved in the tanning
assumed ownership of the largest tannery of sector, Gucci created Blutonic in 2004, in
reptile skins in Europe, the Caravel located order to open a tannery in Santa Croce
in Castelfranco di Sotto, in the Province of specialised in the production of wet blue
Pisa. The Group initially acquired only 51%, intended for the tanneries supplying Gucci
but in 2008 it took over full ownership, with with finished leather.
a definitive split from the old shareholders In 2013, Kering continued its penetration into
coming in 2015 when the brothers Alessandro the tanning sector through the acquisition
and Andrea Dolfi left the Caravel management of a Serbian tannery, as a joint venture with
team following disagreements with Kering13. its Blutonic partners. This operation was
Their place was taken by Filippo Kenji encouraged by a subsidy of 8 000 euros
Nishino, who was already director of industrial offered by the Serbian Government for each
operations for Kering, who assumed full worker employed, which, for the envisaged
control over production decisions at Caravel. 120 employees, means a Government subsidy
‘Vertical integration forms part of Kering’s of almost one million euros16. The tannery is
strategy to support its brands in reaching located in Ruma and was renamed Luxury
Tannery DOO.
11 http://www.fashionnetasia.com/en/
BusinessResources/6110/Raw_Materials_Luxury_All_
you_need_to_know_about_tanneries_being_snapped_ 14 http://wwd.com/business-news/designer-luxury/
up_by_luxury_brands.html gucci-parent-kering-acquires-tannery-6864180/
12 http://www.leathermag.com/news/newsthe-spotlight- 15 Gian Marco Ansaloni e Angelo Magri, Ora Gucci concia
falls-on-supply-chain-security-kering-group-4302633 la pelle in casa, ‘MF Fashion’, 22 July 2004.
13 Cristiano Marcacci, Dolfi divorzia da Caravel e Gruppo 16 http://www.bloomberg.com/news/articles/2013-05-15/ppr-
Gucci, ‘Il Tirreno’, 9 May 2015. to-make-luxury-leather-goods-in-serbia-with-state-support
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Table 1. Kering Group tanneries in Europe
Name
Types of Employees 18
(year or acquisition Location Skins processed
processing (estimated)
or initial production)
Castelfranco di Alligator, lizard,
Caravel (2001) From raw to finished 76
Sotto (Pisa-Italia) ostrich
Ponte a Egola
Blutonic (2004) Cow From raw to wet-blue 15
(Pisa-Italia)
Périers
France Croco (2013) Crocodile From raw to finished 60
(Francia)
Luxury Tannery DOO
Ruma (Serbia) Cow From raw to finished 120
(2013)
2.4. Attempts to multinationalise
The family-run dimensions of Italian tanneries the Mastrotto brothers, who have expanded
have not prevented some of these businesses their operations from Veneto to Brazil, Tunisia
from developing on an international scale, by and Vietnam. The primary reason seems to be
opening tanneries abroad. One example of the need to have access to low-cost finished
this is Antiba, a company in Santa Croce that leather to be placed on a world market now
owns tanneries in India, and Vicenza Pelli, an flooded with new entrants that are managing
Arzignano firm with an operation in Serbia. to sell at prices much lower than those applied
But the kings of international expansion are by the older, industrialised nations.
Box 1. The Mastrotto story
In Italy, one of the major names separate, but an investigation In official terms, Rino Mastrotto
in the tanning sector is that of the conducted in 2011 into the three Group has total turnover for 2013
Mastrotto Family from Veneto. brothers, because of large-scale in excess of 280 million euros and
The founder of the business was tax evasion, brought to light the a workforce of 471 employees at
Arciso, who had a tannery in Arzi- existence of numerous financial its Italian offices alone. But alon-
gnano in 1958 with his three sons: corporations, domiciled in various gside its warehouses and ope-
Rino, Bruno and Santo. The three tax havens, that could be used as rations in Veneto, it also has an
brothers then split the business, joint business vehicles. For exam- establishment in Brazil and one in
creating two separate tanning ple, both groups operate in Brazil Vietnam17.
empires. On the one hand there is and, although it is officially stated Gruppo Mastrotto, for its part,
Rino, who founded Rino Mastrot- that they act as two completely has 2 000 employees and a total
to Group SpA, and on the other, separate entities, no one, besides turnover estimated at more than
Bruno and Santo, who created the brothers, knows how things 450 million euros, and although
Gruppo Mastrotto SpA. Officially, really stand, because there is no 17 http://www.ilgiornaledivicenza.
the two groups are completely available information. it/territori/arzignano/in-mille-per-
conoscere-la-pelle-pulita-1.1772677
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the bulk of its operations are in do Sul and Chapadão do Céu, on in the State of Bahia, which has
Veneto, it also has production uni- the border between the States of a staff of approximately 700. The
ts in Brazil, Indonesia, Croatia and Mato Grosso do Sul and Goiás. It official mouthpieces for the three
Tunisia18. should be noted that Greenpeace brothers claim that their Brazilian 19
The Mastrotto brothers went to has included Gruppo Mastrotto operations only produce finished
Brazil in the 1990s, for the very and Rino Mastrotto Group among leather for furniture and vehicles.
simple reason that it was the the major purchasers of rawhides But it would not be surprising if
second-largest producer of live- originating from animals farmed in they also produced wet blue for
stock in the world and thus offe- deforested zones19. the retanning businesses that the
red extensive opportunities for According to the information avai- two groups operate in Italy. Grup-
procurement of raw materials. It lable, Rino operates in Brazil via po Mastrotto, belonging to Bruno
was no coincidence that Bruno Bermas Ltda, a tannery located in and Santo, is in any case guaran-
and Santo, needing to find a local Maracanaù, in the State of Ceará, teed supply of wet blue by its Cro-
partner, decided on the Reichert which employs approximately 300 atian operation, which confirms
family, which is not only a major individuals, while Bruno and San- the trend towards transferring the
shoe manufacturer, but also has a to operate through Mastrotto Rei- most polluting phases of the pro-
large livestock farming operation chert SA, a tannery in Cachoeira, cess to areas where the laws are
in the municipalities of Chapadão less strict and the labour costs are
19 Slaughtering the Amazon, lower.
18 http://www.mastrotto.com/it/ Greenpeace International, June
company-profile/ 2009.
2.5. The emergence of the middlemen
Among the Italian companies that are But the real outsiders in the acquisition of
acquiring tanneries abroad there are also a foreign tanneries are commercial entities that
number that do not operate primarily in the see themselves as international intermediaries
processing of skins. One example of this is bringing together global demand and supply.
Esastampa, a company within the Posarelli One such entity is Frescopelli, a company
Group, founded in Calcinaia in the Province of founded in Milan in the 1970s to sell skins
Pisa in 1974. This business, which specialises and pelts, and then moved to Santa Croce
in screen printing, has patented a special for reasons of prestige. In 1999, the company
system for printing on skins, which led it to purchased the tannery EffeGi, but closed
acquire, in 1999, a majority shareholding in a it some years later and currently has only
company in Chisinau, Moldavia, called Piele, one warehouse in Santa Croce used for the
a major government-owned tannery that transit of foreign skins that are not completely
produced high-quality semi-processed and finished, which are given to local subsuppliers
finished leather. Today, the company churns for finishing before being delivered to final
out a vast range of soft skins for uppers, Italian or European purchasers. But of all
haberdashery, clothing and shoes20. the skins sold by Frescopelli, only a small
20 http://3237.md.all.biz/
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number pass through its warehouse in Santa
Croce. Like a spider in the middle of a vast
20
web, Frescopelli receives orders from every
corner of the globe and fills them by activating
the tannery within its group that best meets
the needs of the customer in terms of price,
quality and distance. And while the group is
a specialist in commercial relationships with
Russia21, we know that it owns a tannery in
India (Future Pelli India Private Limited) and
an operation in China (Dongguan Sunshine
Leather)22. Some sources report that
Frescopelli also owns tanneries in Nigeria
and Ethiopia, but this cannot be confirmed
because the group is shrouded in secrecy.
Its main shareholder is in fact Mamo SA, a
financial corporation domiciled in Luxembourg,
and it is therefore impossible to find out
who owns it or any companies it owns. We
only know that the residual capital is owned
by members of the Haddad and Haggiag
families, wealthy families of Libyan origin that
are involved in a variety of sectors, including
finance, property and film.
21 http://www.altascuola.confindustria.
it/Conf/Even.nsf/DOCSTPRIV/
C3DAA6255FFCC75441256D4900392A90?
OpenDocument
22 Frescopelli balance sheet and website.
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PART THREE: The Santa Croce District
21
3.1. Organisational structure and employment
The ‘Santa Croce tanning district’ is located on 000 inhabitants. It comprises the municipalities
both banks of the River Arno, halfway between of Bientina, Castelfranco di Sotto, Montopoli
Pisa and Florence. It extends over a radius Valdarno, Santa Croce sull’Arno, Santa Maria a
of 10 kilometres, and has a population of 110 Monte, San Miniato and Fucecchio.
Figure 1. The leather district of Santa Croce sull’Arno
Firenze
Pisa DISTRETTO
DEL CUOIO
Santa Croce has been home to tanning tanning, tanning and finishing. Pre-tanning is
activities for a very long time, but only took on used to remove dirt, hair, meat residues and
the characteristics of an industrial district from fat from the skins, while tanning transforms
the 1800s. To obtain a better understanding them into a material that will no longer putrefy,
of the landscape of the district, we should and finishing provides the skins with the
note that the process used to obtain a finished desired appearance in terms of thickness,
leather involves a range of processing colour, gloss, impermeability and a number of
activities that go beyond tanning in the strict other characteristics.
sense. Essentially, processing of skins can There are a total of 240 tanneries in the District
be divided into three separate sections: pre- of Santa Croce, mostly small-scale businesses.
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Some are equipped to perform all phases of Graph 1. Jobs on the basis of method of hiring
processing, but these are rare. Most only have Employed by

employment 22
the machinery strictly necessary for tanning agencies
28%
activities. The district is therefore also home
to a large number of other establishments,
more than 500 in fact, which undertake
specific processing operations. These are
the sub-contractors that the tanneries use to
Employed
perform preliminary work and final processing directly by
producer
operations that require particular machines. companies
Overall, the district employs 12 700 individuals, 72%
split into two broad categories: those who are Source: Processing of data from the Pisa Chamber of
Commerce and the Pisa Employment Centre
employed directly by producer companies and
those employed by employment agencies, also
referred to as temps. The former represent
72% of the total, and the latter 28%.
3.2. Size and ownership of companies
The average size of businesses is fairly Some businesses in the district do not reach
small, with the average being 11 employees a total of 100 employees as individual entities,
per company. Only seven tanneries have but form part of groups with combined totals
more than 100 employees. One of the that exceed that number. One of these is the
largest is Conceria Incas SpA, a company Finatan Group, made up of three tanneries
with 135 employees that covers almost the that together employ a total of 160 individuals.
entire production cycle: from initial washing In a few very rare cases, tanneries in Santa Croce
to finishing. This number rises to 190 if we form part of big international capital. The most
include the staff employed by the other two widely known of these are Blutonic (15 employees)
companies in the group: Italitan and Il Veliero. and Caravel Pelli Pregiate (76 employees), both
Another large-scale tannery, also with around of which form part of the luxury group Kering, the
100 employees, is Dolmen SpA, which is owner of brands such as Gucci. But apart from
practically three businesses in one, because it these, the majority of the tanneries in Santa Croce
handles reptiles, animals with hair and animals have histories dating to the 20th century, being
without hair. founded by local families who still retain ownership.
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Table 1. The main tanneries in Santa Croce District
Grup Production plants Employees Main shareholders

23
Incas 3 190 Ceccatelli/Rovini/Rosati
Finatan 3 160 Nuti
Alba 2 120 Banti
Dolmen 1 105 Giananti/Nieri
Colonna 4 93 Montanelli/Boschi
Kering 2 90 Pinault
Superior 1 88 Stefano Caponi
Zabri 1 50 Mario Brillanti
CMC 1 65 Calvetti/Mancini/Caponi
Antiba 1 53 Fratelli Balducci
Settebello 1 47 Brogi
Camaleonte 1 46 Giananti/Nieri
Sciarada 1 44 Castellani
Miura 1 32 Bonaccorsi
Si-Fur 1 32 Bracaloni
Masoni 1 32 Fabrizio Masoni
Nuova Impala 1 32 Caponi/Vannucci
Cuoificio
1 31 Novelli/Quirici
Bisonte
3.3. Diversification and international expansion
Many families who own tanneries have is the Balducci family, which heads the Antiba
made their fortunes with skins and are now Group. This group includes the tannery of the
expanding their activities into other sectors. same name in Santa Croce and has control
The Nuti family, for example, owns not just of Prime Pv Ltd, an Indian company with an
three tanneries but also various agricultural operation in Ranipet, and BCM Limitada, a
farms in Tuscany. Until June 2014, the family Brazilian entity with an establishment in Novo
also had a major shareholding in the company Hamburgo.
operating Pisa Airport. They then sold this to There are a range of reasons why Santa
a wider Argentinian company, Corporacion Croce tanneries have decided to purchase
America, without saying where they invested tanneries abroad. In the case of those
the sum generated by that sale. Other families investing in Asia, the main reason is to obtain
however, have preferred to use their profits to finished leather at low costs, to be able to sell
develop their businesses abroad. One of these on world markets currently teeming with highly
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competitive leather produced by tanneries involved in the purchase of Ruma Fabrika
located in newly industrialised nations such as Koze, a Serbian tannery in financial difficulty.
24
Brazil, India, Pakistan and China. Marbella did not take on this operation alone,
For those investing in Brazil and Eastern but rather in cooperation with the Kering
Europe, the primary reason is the need to Group, and ultimately that Group, through its
obtain semi-finished tanned skins (wet blue) at Dutch subsidiary G Operations BV, acquired
low cost, with the objective of importing them the majority shareholding in the Serbian plant,
and finishing them in Santa Croce so that naming it Luxury Tannery DOO. Moreover,
they can then be sold as leather made in Italy. this was not the first operation that the owners
One of these is Gruppo Alba, that includes of Marbella have undertaken with Kering. In
two tanneries with a total of 120 employees. 2004, the company agreed to be involved
In 2006, the Group acquired the Skirianik in the creation of the Blutonic tannery as a
tannery in Ukraine for the stated purpose of minority shareholder.
guaranteeing its import supply of wet blue. 2014 saw another joint purchase between
In other cases, the motivation can be both a tannery in Santa Croce and a major
production-related and financial. One typical brand. The parties involved were Prada
operation of this kind was completed in 2013 and its traditional supplier, Superior, the
by Marbella Pellami (Colonna group), owned tannery owned by Stefano Caponi (with
by the Montanelli and Boschi families. Taking 90 employees). Together (Prada 51% and
advantage of the subsidy offered by the Superior 49%) they purchased the French
Serbian Government for foreign companies tannery Tannerie Mégisserie Hervy near
investing in the country, the company was Limoges.
3.4. Procurement, production and sales
It is estimated that the leather tanned in Santa Italy24. There are about 15 tanneries within the
Croce is intended to be used 70% for footwear, district specialised in the production of leather
20% for leather goods and 10% for clothing for footwear soles, but only nine of these are
and furniture23. One particular characteristic of members of the industry trade group that
the Santa Croce District is that it contributes uses the mark ‘Vero cuoio’. The tanneries
70% of all leather for soles produced in Europe that produce leather for footwear soles are all
and 98% of that type of leather produced in fairly large, because various technical reasons
require that most, if not all, of the various
23 Polo Tecnologico Conciario (Tanning Technology
Centre), Il Distretto del cuoio in Toscana, 2010. 24 National Monitoring Centre for Italian Districts, 2015
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phases of production be performed in-house. world. Depending on their size, the tanneries
We should also note that the leather used for take part using their own personnel or use
25
soles is obtained by vegetable tanning of the external agents to run their stands.
rump, which is the thickest part of an animal’s The trade fairs are a meeting point with
hide. This explains why tanneries producing various entities and individuals: pure traders,
leather for soles are among the largest wholesalers who purchase stock skins with
importers of skins and, after having cut the the intention of reselling to smaller purchasers,
most valued portions for themselves, sell the medium-sized companies manufacturing shoes
remaining softer stocks to other local tanneries. and leather goods, and even major brands.
Within the district, vegetable tanning is not This is where initial contacts are created, and
used solely by companies producing leather these then lead to contracts for orders.
for soles. It is estimated that a further thirty In the case of orders from major brands, the
or so tanneries have made the decision to goods are always subject to inspection prior
use exclusively tanning of this kind, but only to delivery. They are examined either in the
22 are members of the industry trade group tannery by experts sent by the purchaser
called ‘Consorzio vera pelle italiana conciata companies, referred to as ‘pickers’, or at the
al vegetale’ (the Consortium of Genuine premises of the brands by their own quality
Vegetable-Tanned Italian Leather). control departments. In some cases, some of
In total, it is estimated that there are about the goods are rejected because of defects,
fifty companies that perform solely vegetable and the tannery must then invent a way to
tanning, thus 16% of the total. All of the others resell them. «Discarded items are either
tan using chromium, with some using both kept in the warehouse for resale to someone
techniques depending on the product to be who is happy with a lower-grade product,
produced and the requirements of the customer. or they are coloured black, because black
Like all companies, tanneries must address covers everything. If it is not a special item,
the issue of market outlets, which can be everything is coloured black. For us who work
resolved using two principal strategies: sale with sheep skins, this is something we do
to regular customers and supply on the open during the winter, when there’s less work»25.
market. More generally, sale on the open In addition to sales through trade fairs,
market is achieved by means of trade fairs and leathers are also sold by means of direct
representatives, starting with the production contact, in some cases to new customers but
of samples. For new seasons, the tanneries more often to repeat purchasers connected
produce samples of finished leather that are by ties of loyalty (see Table 2). On the other
then displayed at trade fairs throughout the 25 Interview with a worker in a tannery processing sheep
hides.
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hand we have already noted some economic Table 2. Luxury brands and some of their
suppliers in Santa Croce district
alliances between tanneries and major brands.
26
The most significant of these is between Gucci Buying Company Supplying Tannery
Ferragamo Marbella, Masoni, Camaleonte
(Kering Group) and the owners of the Colonna
Tod’s Zabri, Masoni
Group. Together, they purchased Blutonic, Caravel, Antiba, Dolmen,
Louis Vuitton
Camaleonte
which is specialised in the production of wet Timberland Dallas
blue, which is probably used primarily to Superior, Camaleonte, San
Prada
Lorenzo
supply the tanneries within the Colonna Group Caravel, Marbella, Masoni,
Gucci (Kering)
Camaleonte
(Marbella, Conceria 800 and Falco Pellami),
Sergio Rossi (Kering) Masoni
for the production of finished leather intended Valentino Marbella
Chanel Marbella, Miura, Antiba
principally for Gucci.
Camaleonte, Marbella, San
Dolce e Gabbana
Lorenzo
Burberry Marbella
Source: interviews and local press
3.5. Methods of employment and illegal work
In recent years, the methods available to there are workers with tannery contracts and
businesses to procure labour have multiplied, others who, despite doing the same jobs, have
and while it was once possible only to hire support services contracts, which obviously
workers directly under permanent contracts, are less costly for businesses and do not
companies now have access to a range of envisage any kind of specialisation: workers are
other possibilities. To begin with, in the context not trained for the jobs they do, especially in
of direct hiring, they can also opt for part-time terms of safety. Furthermore, for these workers,
or fixed-term contracts. But the real innovation overtime pay is shown as travel, so companies
is that they can now use staff who they do not do not need to pay PAYE or social security
directly employ. As reported by Loris Mainardi, contributions. The system works even better if
a trade union leader in Santa Croce, one the cooperative is based in another province,
possible method is by means of subcontracting as in the case we uncovered»26.
of labour to external firms that bring their But Mainardi explains that another even more
own personnel into the company: «Another convenient method is the use of labour supplied
practice that is gaining ground is use of the by temping companies, also referred to as
services of workers hired by support services employment agencies. «Temp labour is perfect
cooperatives. So, within the same company, 26 Troppe situazioni anomale nelle aziende del cuoio.
Lavoratori senza tutele, in ‘Il Tirreno’, 5 October 2011.
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for tanneries. Because of the flexibility of the If a worker refuses to do what is asked, that
contracts (where individuals are sometimes worker is not offered any more work and will go
27
taken on for a single day) and the fact that hungry. «What’s more, many are paid less than
many jobs require minimal skill, businesses can they should be because they do not know that
constantly adapt their workforce to fluctuations they are entitled to production bonuses»27.
in terms of slow periods and those where it
is necessary to finish orders on a rush basis. 27 Premio di risultato e contratti interinali, la CGIL
rivendica i diritti dei lavoratori nelle concerie, in
Temp workers are also open to blackmail». ‘Gonews.it’, 13 March 2015.
Temporary work
Temporary (temp) work refers to 2. The user, which is the busi- replace workers who are absent
work performed for a business ness that requires labour; because of illness or vacation, the
that is not covered by a direct employment agency concludes a
employment relationship, but 3. The worker. corresponding contract with the
is instead managed through an worker for the time required.
intermediary that sends workers So a temp work relationship requi- In the case of an open-ended
for the period strictly necessary res the conclusion of two different contract, also referred to as
according to the requirements of contracts: the employment supply ‘staff-leasing’, the agency hires
the requesting company. contract, concluded between the the worker on an open-ended
In Italy, temp work is regulated by supplier and the user, and the basis, but assigns him to work
Delegated Law No 30/2003, also employment contract concluded when required by the requesting
known as the Biagi Law, which between the supplier and the company and pays for the time
provides for the involvement of worker. actually worked. During periods
three entities: The employment supply contract when the worker is not employed,
must be concluded in writing and he remains at the disposal of the
1. The supplier, also referred can be either a fixed-term or an supplier and is entitled to pay-
to as the ‘temp agency’ or open-ended contract. ment of availability pay, provided
‘employment agency’, which In the case of a fixed-term con- that the contract does not provide
concludes an employment tract, which is used to cover otherwise.
contract with a worker; periods of peak production or to
On the basis of the 2003 law, open-ended by the user company. However, if this limit is
employment supply contracts were possible exceeded, there is no obligation to take on
only for certain professional positions, but a these workers directly, but rather only a penalty
2015 law, also known as the Poletti decree, equal to 50% of the monthly remuneration.
has removed this constraint, merely prohibiting In 2012, there were 1 733 temp workers in the
the use of labour on a staff-leasing basis to Santa Croce district28. In 2014, this figure had
cover more than 20% of the total number of risen to 3 451, exactly double the previous
employees hired under open-ended contracts number. This is an indication that employment
28 Source: Inail.
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in the district has grown, but on an increasingly lists of temp workers. The data provided by the
insecure basis. It is also proved by the fact that, Santa Croce Employment Centre confirm this:
28
in 2014, 4 650 new people found work in Santa 54% of temp contracts signed in 2014 related to
Croce, but only 1 199 of them were directly foreigners, almost all from outside the EU.
employed by producer companies29.
Graph 3. Temp contracts by nationality
concluded in 2014 in six municipalities of the
Graph 2. The new jobs by type in 2014 in six
tanning district
municipalities of the tanning district
EU nationals
Employed by 1%
employment
agencies
25%
Italians
46% Non-EU
nationals
Employed directly 53%
by producer
companies
72%
Source: Pisa Employment Management Centre Source: Pisa Employment Management Centre
The information available about contracts serves Despite the vast range of hiring methods
to confirm this insecurity. In 2014, temp workers available under the law, the use of undeclared
numbered 3 451, but there were 5 021 contracts labour continues to persist in the Santa
concluded: one and half times the number of Croce District. This is the most serious form
workers30. This indicates that many workers are of infringement of workers’ rights, because it
employed on a stop-and-start basis for periods deprives them of protection against accidents
that can be very brief. Tania Benvenuti, another and of pension and retirement entitlements.
union leader of the CGIL, explains that she has In Italy, the task of verifying that the law
in fact heard a report of a worker with a contract in relation to employment relationships is
for four hours: hired at 8:00 am and let go at being enforced appropriately falls to the local
midday31. This was a Senegalese individual, authorities known as the Provincial Labour
one of the many foreigners who are joining the Directorates. Inspectors take action either on
their own initiative or following complaints.
29 Employment Management Centre, Pisa, Sintesi statistica
Centro impiego Santa Croce S/Arno focus Valdarno, 2015 From 1 January 2011 to 31 December 2014,
30 Letter from the Employment Management Centre in Pisa.
31 Carlo Baroni, Assunto alle 8, licenziato a mezzogiorno: Santa Croce (excluding the municipality of
contratto interinale per sole quattro ore, in ‘La Nazione’,
4 March 2015. Fucecchio) saw inspections of 181 businesses
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and a total of 999 workers. Of these, 70% and then making them work full-time».
were Italian and 30% immigrants. In all, Half a day under contract and half a day
29
illegal aspects were identified in relation illegally. According to the trade unions, this
to 208 workers, 112 of whom were totally practice is becoming increasingly common.
undeclared. 44% of the individuals working on Mainardi continues: «The remuneration of
an undeclared basis were immigrants. these workers is not all recorded in the pay
According to Loris Mainardi, trade union packet, which means substantial tax and
leader, «The possible forms of illegal social security savings for the companies
employment include hiring workers under concerned»32.
32 Troppe situazioni anomale nelle aziende del cuoio.
contracts for limited hours, or part-time, Lavoratori senza tutele, in ‘Il Tirreno’, 5 October 2011.
Table 3. Illegal work by company
Companies inspected Companies with illegal work % companies with illegal work of those inspected
181 88 48,6%
Table 4. Illegal work by workers
Workers present at the time Workers with illegal % workers with illegal aspects
of the inspection aspects of those present
999 208 20,8%
Table 5. Undeclared workers
% undeclared workers
Workers present at the Undeclared % undeclared workers
of those with illegal
time of the inspection workers of those present
aspects
999 112 11,2% 53,8%
Doubts exist, however, about the accuracy to the vast size of the area. For example,
of the numbers of illegal issues identified the Pisa Provincial Labour Directorate,
by the authorities and the number actually which has jurisdiction over the Santa Croce
existing in Santa Croce, because the District, has 45 000 businesses to monitor,
inspection capacity of the competent and only 11 full-time inspectors, 2 of whom
authorities is extremely limited in relation are technical inspectors.
3.6. The lives lived by immigrants
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Despite the significant degree of Fucecchio) have increased from 5 060 to 14
30
mechanisation, processing of skins continues 248. It is interesting to note that the increase in
to be a difficult and laborious activity because the number of foreign residents in the last five
of the physical effort, noise, humidity and years within the district is greater than the total
chemical fumes involved. This explains why for the region (which, for Tuscany, represents
80% of persons permanently employed an increase from 164 800 individuals in early
are males, while 16% are immigrants from 2004 to 395 573 in early 2015), with an even
non-EU nations33. more marked increase in the number of
Senegalese in the last two years. The increase
Graph 4. Workers permanently employed in the in the number of Senegalese residents
tanning district by nationality
coincides with larger numbers of women, as a
Source: Pisa Chamber of Commerce 2015 result of family reunification: when wives join
Non-EU their husbands in territories of emigration, it is
nationals
16% a sign of the spread of migratory projects that
are intended to achieve settlement rather than
temporary residency. This is thus an indicator
that they are putting down roots and no longer
consider themselves migrants.
Italians and EU
nationals 84%
Graph 5. Change in the number of foreign
residents in the tanning district and in
Tuscany as at 1 January of each year, 2004-
2015 (2004 = 100)
Foreign workers began to arrive in Santa Source: Processing of ISTAT data
Croce in the early 1990s and their numbers 350
have steadily increased, with a slight fall in 300
the number of residents between 2012 and 250
2013, probably because of the effects of the 200
economic crisis. In the last ten years, foreign 150
residents in the seven municipalities making

100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
up the tanning district (Bientina, Santa Croce
Total Immigrants Senegal Immigrants Senegal Immigrants
District District Tuscany
sull’Arno, Santa Maria a Monte, Castelfranco di
Sotto, San Miniato, Montopoli in Val d’Arno and
33 Communication from the Employment Management
Centre, Pisa, 2015.
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Graph 6: Number of males per 100 females some of these workers have managed to make
(sex ratio) in the Senegalese population
it to the tannery warehouses or to finishing, and
resident in the municipalities within the 31
tanning district thus the final phases of processing, involving
1200 quality control rather than fatigue. «I have
1000
dignity – says Amadou, who has worked in
800
setting-out since 1994, with a short break of
600
several years when he worked as a truck driver
400
200 – if they ask me to do something that Italians

0 don’t do, I don’t do it». Mario, an Italian labourer
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sex ratio who has been progressing for years under

Source: Processing of ISTAT data temp contracts, admits that «the Senegalese
are employed mostly in contract manufacturing,
The largest community is the Senegalese, where they work under very difficult hygiene
which has grown from 654 residents in conditions: in wet conditions, with noise, in
2005 to 2034 in 2015. The first sector where arduous operations, and with abnormal hours.
immigrants found work was pre-tanning, and But – he adds – this is also needed among the
in particular scraping (fleshing) and splitting, Italians». But bosses often prefer Senegalese
which involves handling heavy, dirty skins, a workers over Italian. They believe they are
task with little attraction for Italians. According more reliable because they are available
to various statements, there was a handover to do overtime and to work on Saturdays,
from Southern Italian workers to immigrants. they do not complain and they can always
Previously, the toughest jobs were performed be found. This is not, however, behaviours
by Southern Italian workers, but many of those caused by character, but the result of specific
individuals then started their own businesses dynamics of exploitation and blackmail. Sylla’s
as subcontractors and their jobs were taken story shows exactly what might be hidden
over by the Senegalese, who were also keen to behind companies’ claims of the reliability of
advance. After years in those initial positions, Senegalese labourers.
Sylla’s story
Sylla was born in Senegal in 1979 but has never had a permanent contracts envisage working days
and has worked in a tannery in contract. The most he has been of six hours, but the actual length
Castelfranco di Sotto since Sep- offered is a contract for six months, of the working day depends on
tember 2005. He has always wor- but it is usually contracts for one the day’s orders: it’s usually seven
ked as a splitter for the same firm, month or five days. Officially, the and a half hours, or eight hours a
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day, from 4:30 am. Other times, he necessary to replace the machine. him. Even if other splitting com-
works for two-three hours and is The company is small, with a panies need labourers, he would
then sent home. total of four Italian labourers certainly not be called.
Scraping and splitting are ope- working under open-ended con- He has asked the agency many 32
rations performed on skins that tracts and three foreigners (two times if he can change firm,
have not yet been tanned, and Senegalese and one Albanian) because there is not enough work
they must be done within strict employed through an agency on and he needs to earn a living, but
timeframes or the skins spoil. fixed-term contracts. Despite the there is nothing he can do: it is the
The skins usually arrive in the fact that Sylla has now been wor- agency that decides who to call -
early morning, typically at 4:30, king for ten years for the same take it or leave it. He has complai-
and are immediately placed in firm, his contracts have always ned to the union, but nothing came
the drum so that they can soften been minimum term. The com- of it: «they give you all the spee-
and be worked with the right level pany does not wish to take on ches– he says – make your head
of moisture. But savings can be any responsibility for him, but spin, but they don’t do anything».
achieved by using less water than insists that Sylla not work for He has protested to the company,
is standard, and ultimately Sylla anyone else. The owner calls asking for longer contracts, but
and his colleagues are forced to him ‘my guy’. When the contract the answer is always «because of
handle skins treated with excess ends and there is no more work, the crisis, there’s no work. When
chemical products. the temp agency does not offer there is work, it will be different».
The splitting machine used in to find him work with other firms: But he’s been hearing the same
the company is old and does not it only calls him when ‘his’ firm thing for ten years. The only result
always work properly: customers needs him. The agency has an is that he has managed to get a
often complain that the skins agreement with the boss and promotion, from level 2 to level
have been ruined and take their does not want to risk a situa- 3. «During this time– he says– I
business elsewhere. So there’s tion where Sylla is working for have withdrawn from the com-
not much work, but the owner another company when that pany: I am going to work when
is retired and does not want to company needs him. So Sylla is they call me, but my spirit and my
spend the 300 000-400 000 euros forced to wait until ‘his’ firm calls heart are not in it, I’m not happy».
Sylla’s case is not unique, and other people «I’m not a spare part», he says. Once, he
have confirmed that this situation exists. went to another agency and found work with a
Mbaye qualified as an IT technician in Senegal different firm. When the first agency called him
and has been in Italy since 2003. He works to offer him a week contract from his usual
80% of the time for a single company that firm, he said that he was already working for
performs scraping, and the agency does someone else. The agency asked who he was
not call him unless it is this company that working for and told him that it would not be
wants him. When he goes to work at ‘his’ calling him again. He then went and spoke
firm, it’s as if he’s one of the permanent staff: with ‘his’ firm - since that time, he has had an
he arrives and already knows everyone, he agreement. The company rings him first to
knows exactly what to do and doesn’t waste see if he is available and, if he is, the agency
any time. But he needs to work and cannot makes the call and concludes the contract.
rely solely on the needs of a single employer. Interviews with Senegalese workers reveal
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the same main issue affecting them all: employ that worker on an undeclared basis for
fixed-term contracts and temping agencies. a week or even 20 days, without any contract
33
We have seen numerous half-day contracts, or insurance cover. Even more widespread,
for example from 2:00 to 6:00 pm. When however, is the practice of imposing additional
workers are requested for a single day or for hours over the number set in the contract.
four hours, they are required to work harder There are cases of work days commencing at
than employees working under open-ended 7:00 am and lasting until 9:00 pm with a one-
contracts: ‘they make you work more than hour break for lunch, and thus a total of 13
normal, they kill you at work and then send hours. «You work like a dog and you earn less,
you away, you come home from work with a the company doesn’t pay for the extra hours, it
sore, aching body’ (Mbaye, 41); «We’re like only pays what was agreed with the agency».
lemons, they squeeze us and then throw us But it is difficult for anyone to say no: «Work is
away» (Mamadou, 47). We have seen cases like that now, if you don’t agree they won’t call
of people who have carried on for a year you any more». And the need to earn a living
under weekly contracts: «you’re practically a means that you have to agree to anything.
slave – they say – if one week you complain or According to the interviews, temp workers
mess up, they send you away, they have you also work under worse safety conditions.
by the throat. If you refuse to work as hard as According to Diolas: «For us, the firms do not
they demand, they stop calling you, they use buy the necessary clothing, and when they do
someone else». Often the day contracts are give them to you, they are such poor quality
extended five times to cover one work week, that they’re useless. If we want decent gloves,
or a week contract is extended four times to those of us who work on a daily or weekly
cover work for an entire month. Ultimately, basis need to bring them with us from home.
you might have five pay packets covering And boots too: how can we not bring our own
one week, or four for a month. And this also boots when the floor is covered with water and
happens with Italian workers. there is fat everywhere?».
The interviews show that undeclared work The interviews show that other basic
is also widespread, under several ways. For accessories required for the health of workers,
instance, a company might contact a worker such as earmuffs to protect against noise
for the first time through an agency, have an and masks to prevent inhalation of fumes, are
interview and offer a legal contract for two, almost never given to temp workers. «Where I
three or five days. Then, if it is happy with work, there is an extraction machine– explains
the work, it will contact the worker a second Amina, coating labourer aged 43, separated
time directly, without any intermediary, and with four children – but it is always off because
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the firm says it costs too much to keep it on». In companies are looking to employ people, it is
seven years working for this firm, Amina says young, strong twenty-year-olds, not forty-year-
34
she has witnessed only one inspection resulting olds, that they are looking for.
in a fine, because the dyes were not kept in the With increasingly meagre salaries, savings
right place. This is an exception: many workers need to be found everywhere. You go back to
claim that, in most cases, inspections are sharing a small apartment with four, five or even
announced and the companies know what to six other people, you ask for loans from friends
do to avoid being fined. who are working so you can pay bills - the
As one would expect, the economic crisis has objective is to send money back to the family
further weakened the position of immigrants still in Senegal. But it is not always possible.
and many are losing the jobs they have The injustice of the Italian system is clear
managed to find. Some who managed in for all to see every day. Years and years of
the past to win a permanent position have contributions paid to the national social security
lost these jobs when they have returned to system, which will be all but impossible to
find their loved ones in Senegal: the blank turn into a pension when you leave, and an
resignations that they were made to sign when unemployment benefit granted only to those
they were hired have been used by employers who can prove the existence of an employment
to lay off workers absent for too long. And contract for two consecutive years. These are
many have had to return to the maelstrom of measures deemed to be inadequate to support
temp contracts, despite their length of service. those experiencing difficulty after having
In fact, their age has counted against them: if worked for decades in tanning businesses.
3.7. Salaries and working hours
The salaries brought home by workers depend The story is different for labourers employed
on the jobs they perform, the basis on which directly under permanent contracts, who
they were hired and the type of contracts perform the same work but can be paid up to
applied. For temp workers, the amount 200 euros more each month, depending on
depends primarily on the number of hours the type of company they work for.
worked. In terms of hourly pay, few complain. Salaries in the tanning sector are set on the
A level-two labourer, which is the most basis of a national agreement concluded
common, often earns between 8.00 and 9.00 between the National Union of Tanneries
euros net, but if the number of hours is limited, (UNIC) and the relevant trade unions that
the final sum is basically poverty. are members of the CGIL, CISL and UIL
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confederations34. But the subcontractors Obviously, we are dealing here with pay for
considered this to be too onerous and normal working hours, and the law sets a
35
concluded a separate agreement in 2014 with working week of 40 hours, except in the case
the highly accommodating union UGL35. of more favourable provisions laid down in
The two contracts are identical in many collective bargaining agreements. It then adds:
respects, including in terms of salaries. But «The average duration of the working period
the most significant difference relates to the may not in any case exceed, for each period
conclusion of supplementary agreements on a of seven days, a total of forty-eight hours,
company or local level. The agreement signed including overtime hours». In other words,
by the three confederations with UNIC allows overtime may not exceed eight hours a week
this, while the agreement signed by UGL with or 250 hours over the entire year.
subsuppliers does so only in theory. In Santa Croce, it is usual to work more than
The moral of the story is that, in 2012, the 40 hours a week, to the point that a work day
confederated unions within the district of of eight hours is considered to be a crisis.
Santa Croce concluded a local supplementary Use of overtime is normal practice, partly for
agreement that provides significant benefits technical reasons and partly for economic
for workers, but applies only to tanneries and reasons. Technical reasons include the fact
not to subcontractors. This means that, even that the skins need to be moved from one
where salary and working hours are the same, processing phase to the next very quickly,
there is an average difference of 200 euros in or they will deteriorate. So, if a change of
the monthly earnings of workers in tanneries phase occurs at the end of the working day,
and workers in subcontractors. the worker must stay on. Economic reasons
Using the example of a level-two labourer, include the fact that many tanneries no
which is the level achieved by many of the longer have the large warehouses they once
labourers in the sector, gross pay is 1 686 had where they can store skins awaiting
euros per month for those employed by subsequent processing. This is a situation that
tanneries and 1 442 for those employed by is tacitly accepted by the employment contract
a subsupplier. In terms of net pay, the former governing tanneries (renewed in July 2013 and
earn 1 380 euro per month and the latter 1 180. expiring on 31 October 2016), which states
in Article 8 that: «During regular periodic
34 Valid from 1 November 2013 to 31 October 2016.
35 In actual fact, there are two national collective shifts, the worker going off-shift may not
bargaining agreements for tanning subsuppliers,
both signed by the trade union UGL. But one is with cease work until he has been replaced by the
Federterziario (http://www.federterziario.it/wp-content/
uploads/2015/02/CCNL_SETTORE_CONCIA-.pdf) worker coming on-shift, notwithstanding the
and the other with CEPAA (http://www.cepaa.it/info.
php?n=170). application of the extra amounts established
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for overtime work». It continues as follows: 4:00 am. Then, if everything goes well and the
«No worker may refuse to perform overtime, workload is not excessive, the skin is ready
36
within the conditions provided by law and for delivery at midday. But unexpected events
this agreement, whether at night or on bank always happen, the tannery has an extra and
holidays, except on the basis of justified the workers are required to stay until 1:00 pm,
individual reasons for not working». 2:00 pm, sometimes until 6:00 pm. This means
And Piero notes: «Here it’s another world, a total number of as many as 14 consecutive
we call it the Leather Republic. Now there is hours, although with a few breaks. This is a
a high workload and we’re doing eight hours quantity of overtime that clearly is far in excess
of overtime a week, so 32 each month. On of the legal maximum. And this is where cash-
Mondays and Fridays, we do nine hours and in-hand comes in, with overtime being paid
on Tuesdays, Wednesdays and Thursdays under the table. This is a phenomenon that
we do ten. Obviously this is something that is is due in part to the interests of both parties,
happening for these months now, and then the companies and workers, in earning more
other months of the year we work eight hours. behind the backs of the tax and social security
So, yes, sometimes you’re tired in the evening, authorities, and in part to the need to hide the
you feel that it’s a pace that sometimes says: violation of the law governing overtime.
we can’t keep on like this». «Up to a short while ago (it does still exist
According to the statements gathered, the but less now), there was the practice of
average workday in tanneries is nine hours, ‘ammesati’. In practice, I, the worker, make
considering that there is less work in winter an agreement with you, the company, to get a
(even only eight hours), but in the period net figure x at the end of the month and then it
from March to July, when the workload is at doesn’t matter how it is given to me. Another
maximum, employees are even required to fairly common way of getting around tax and
work on Saturday mornings. However, it is social security is to pay the amounts owing for
in subcontracted companies that employees overtime in the form of reimbursement of costs
are required to work the most. In scraping for travel» (Tania Benvenuti – trade union
and splitting, for example, work often starts at leader for CGIL, Santa Croce).
3.8. Accidents
In their lengthy journey from rawhide to finished Each processing operation entails a potential
product, skins pass through many different risk for the health of workers, and, indeed, can
phases and move through many different firms. become a real threat depending on the choices
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made by individual operators. The actual risk conducted a study on 101 workers involved in
depends on how modern the plant is, whether splitting, with a mean age of 44 years, of whom
37
protective equipment is available, whether health 37 were foreigners. Of all workers examined, 31
and hygiene standards are met, and what kind tested positive for spinal problems36.
of training is provided for employees. The actual If we extend the analysis to cover the entire
situation in Santa Croce is too fragmented for tanning industry in Santa Croce, from 2009
us to gain a detailed picture of what really goes to 2013, 720 accidents were recorded,
on. Modern, large-scale tanneries that comply with a distribution fluctuating year by year.
with the applicable legislation exist alongside Considering that 528 of these accidents
small tanneries and subcontractors that are related to Italian workers, it appears at first
reluctant to invest in health and safety and in glance that the individuals most affected are
fact seek to increase their profits by defrauding Italians. But if we compare the number of
the tax authorities, using undeclared workers accidents with the number of jobs held by
and violating the accident prevention laws. In individuals of the same nationality, we can see
this context, all we can do is describe the work that the incidence of accidents among Italian
phases that are objectively most hazardous workers is 7.6%, while the incidence among
and illustrate the critical issues identified in the immigrants is 14.4%37.
district by the authorities.
It is generally accepted that the initial phases Graph 7. Nature of accident injuries (Tuscan
tanning sector 2009-2013)
of skin processing are the ones that expose
workers to the greatest amount of fatigue Other
20%
and discomfort, through the manipulation of
material that is heavy, dirty, and laden with
meat residues and fat. Individuals working in
Bruises and
scraping and splitting are therefore entitled wounds 49%
to additional pay of 5.37 euros a month, but

Italians generally prefer to leave these jobs to Factures
and joint
immigrants, judging them to be too unattractive. problem 31%
Because of the need to lift and move very Source: Processing of INAIL data
heavy skins (because of the high water content),

muscular and skeletal disorders are common 36 Occupational Health Unit 11 - Empoli, Ergonomic
risks in some tanning processes, Report submitted to
among individuals working on these phases. the Conference on health and safety in tanneries, 29
September 2011.
In 2011, the Occupational Health Office 37 Assuming that there are 8 200 individuals working on skin
processing and immigrants represent 16%, this means that
with jurisdiction for the Santa Croce district there are 6 888 Italians employed and 1 312 foreigners.
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In total, there were 176 serious accidents in 2004 and was the result of inhalation of
(25%), including one fatal accident, in hydrogen sulphide, the chemical component
38
2012. The owner of a subsupplier company that can be most dangerous for anyone
was struck by a forklift and died of a brain working in a tannery.
haemorrhage. The previous death occurred
Hydrogen sulphide: if you breathe it in, you will die
One of the most serious risks gas is most likely to form during cases, concentrations of H2S in
in tanneries is poisoning by deliming and pickling, and the excess of 1 000 parts per mil-
hydrogen sulphide, also known risk is particularly high in this lat- lion have been detected, levels
as hydro sulphuric acid (H2S), a ter phase, because of the use of that can cause serious harm to
colourless, extremely poisonous strong acids. The quantity of gas operators if they are inhaled. To
gas with a sharp odour of rotten that forms inside the drum during prevent this significant risk, the
eggs, which can cause death if pickling depends on various drums used for pickling must be
inhaled. factors, including inadequate fitted with appropriate extraction
Hydrogen sulphide is formed washing, which leaves a high and abatement systems that are
from sulphur compounds, which quantity of sulphides on the skins able to eliminate the hydrogen
are used in the various phases as residues from the previous sulphide that forms during pro-
of the tanning process. But the processing stage. In certain cessing.
The operator who died from hydrogen sulphide was wearing a protective mask, but according
poisoning in June 2004 was named Thiam to the trade unions he wasn’t. According to the
Mamadou Lamine. He was aged 35 years and union, «the extraction system was not operating
was Senegalese. It was his first day working and the young man was not wearing a mask».
as a temp: he died after being assailed by a Thiam died during the pickling phase: acids
cloud of hydrogen sulphide released by a drum are introduced into the drum and, when they
that he had just opened to check the skins. come into contact with the sulphide residues
Thiam entered the tannery humming and from the previous phase, hydrogen sulphide
exited lifeless on a stretcher. In Senegal, he left develops. This is a gas with a characteristic
behind a wife and two children, one of whom he odour of rotten eggs that is fatal, even at low
had not yet even met. He lived in Santa Croce concentrations. «To avoid risks – explained
with his brother, in via Sozzi, an area populated the Tanners’ Association - there are extraction
by other Senegalese, a large, well-established systems that remove the gas automatically as
and integrated community. Immediately it forms. When the drum is opened to check on
following the tragedy, the debate started: the contents, nothing should come out». But
according to the owner of the company, Thiam according to the union, the extraction system
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was not operating. Thiam had already worked him proper training. And that time, after having
in tanneries, including the one where he lost climbed up the wooden steps to open the lid of
39
his life. He had already performed checks the drum, his breath was cut off as if he was in
during pickling, but perhaps no one had given a gas chamber.
3.9. Occupational diseases
In addition to accidents, tanneries also have atmospheres, or performance of demanding

to deal with the problem of occupational work. There have been 493 cases of
diseases, those issues that develop over occupational illness recognised in Santa
time, through contact with hazardous Croce between 1997 and 2014, subdivisible
substances, long periods spent in unhealthy into five major groups.
Graph 8. Distribution of occupational diseases (Tuscan tanning sector 1997-2014)
Bone and joint diseases 215
Neoplasia 96
Dermatitis 87
Hearing loss from noise 54
Respiratory diseases 30
Other 11
0 50 100 150 200 250
Source: ASL 11, Empoli, 2015
Musculoskeletal disorders are the most 19%. The organs most frequently affected
numerous group, representing 44% of all are the nasal passages and the bladder. The
occupational diseases recognised in the period causes of malignant tumours affecting the
and are caused by biomechanical overload. nasal passages are still being studied. The
The most frequent conditions are shoulder following comments have been written by
injuries, carpal tunnel syndrome, and muscle Dr Tonina Enza Iaia, chief of occupational
and tendon injuries affecting the elbow. medicine at Local Health Centre 11 in Empoli:
Cancers rank second with an incidence of «In terms of this illness, the Department has
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been conducting active research for years containing hexavalent chromium in relation to
into cases with current information sources operations involving manual synthesis of basic
40
(…). In the tanning sector, there are currently chromium sulphate using sodium bichromium
a reported 21 cases out of a total of 56 cases with the addition of sulphuric acid and glucose.
in the lower Valdarno area, including Santa The information acquired on two cases
Croce district. This statistic is extremely represents a novelty in terms of the tanning
interesting, because, while it is a well-known technology used in the area in the past that is
fact that there is a high incidence of cancer still denied by operators»38.
in the footwear and wood sectors, there have With regard to bladder cancers, unlike
been very few reports in the literature to date those affecting the nasal passages, these
of cases or of deaths in the tanning sector. are relatively frequent among the general
The finding that there are 21 observed cases population and exhibit more than one cause.
merits greater attention, both because of The Italian Workers Compensation Authority
the high relative number and because of the (INAIL), however, recognises the occupational
uniform nature of the exposure, given that illness in workers who have been exposed
all of these individuals have been employed to carcinogenic aromatic amines used above
in the production of leather intended for the all as colourants in many sectors. In tanning
manufacture of soles. Tanning of leather for processing and in finishing of skins, there
soles has been performed over the years, and has been documented use in the past of
is still performed, using vegetable or synthetic substances evaluated by the IARC as certain
tannins, in the form of fine powders that are or suspected carcinogens for the bladder.
tipped out of bags, generally using manual This includes, in particular, colourants
techniques, into the tanning vats. It is highly produced from benzidine, o-toluidine,
probable that all the tanners including among o-dianisidine, 3,3’-dichlorobenzidine and
our list of cases have, because of their work, 2,2’-disulfobenzidine.
repeatedly inhaled tannin dusts or dusts and Third rank in terms of occupational illnesses
fibres from leather treated with tannins that, is taken by contact dermatitis resulting from
as we know, have long been identified as sensitivity developed towards one or more
carcinogenic in experimental systems». of the 300 chemical substances used in the
But she continues: «We should note, in animal skin processing cycle39. According to
relation to the cases observed among workers Dr Iaia: «Often, chemical products are handled
in tanning, the recent observation of two cases
38 Tonina Enza Iaia, Problemi sanitari in conceria, June 2015
in which, in addition to exposure to leather 39 Sensitivity means the onset of abnormal reactions in
the presence of a given substance such as to induce
dusts, there is also reported handling of dusts discomfort in the individual concerned.
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very casually and with little thought without items such as earmuffs and earplugs). She also
any kind of precautions to limit contact with noted that, because of an effective campaign
41
the employee’s skin. […] The cases observed to provide information and training for workers,
show sensitisation towards chromium and its there has been a noticeable reduction over the
compounds (chrome trichloride and potassium years in the levels of absorption of chromium
dichromate, a total of 36.4%), colourants and therefore renal damage. Chromium salts
(18.2%), formaldehyde and glutaraldehyde are nevertheless one of the listed substances
(10.6%), and rubber compounds (9.1%)». She that can cause bronchial asthma, along with
continues as follows: «The relative prevalence formaldehyde, isocyanates and other chemical
of sensitisation to chromium compounds can compounds. In addition to asthma, conditions
be interpreted as related to the use of basic affecting the respiratory tract include chronic
chrome sulphate as a tanning agent, with pulmonary disease, which develops primarily
sensitisation to trivalent chromium and to the in workers who smoke but who work in areas
presence of certain colourants made of salts with high humidity and are employed in jobs that
of hexavalent chromium». envisage the use of large quantities of chemical
products with pronounced irritant properties for
Graph 9. Contact dermatitis on the basis of the the skin and mucosa.
triggering substance (Tuscan tanning sector)
In 2009-2010, the prevention service from
Other Local Health Centre 11 from Empoli performed
26%
Chrome a survey to verify the health risks of the
36%
chemical substances used in 21 companies
during the skin finishing phases. A total of 350
preparations were examined, obtained from
Rubber
9% the mixing of various substances, including
85 with health risks. And while 58 were only
Formaldehide
and glutaraldehyde allergenic by contact or inhalation, 27 were
Colorant
11% 18% found to be genotoxic, and thus able to
Source: ASL 11, Empoli, 2015 damage the body’s cellular genetic material,
with a risk of the development of cancer or
In her report, Dr Iaia noted that hearing problems negative repercussions for reproduction. It
are decreasing, thanks to the implementation of should be noted that three of the substances
collective preventive measures (such as gradual examined (formaldehyde, 2,4-toluene
replacement of machinery and the use of diisocyanate, and multifunctional cross-linking
soundproofing) and personal protection (use of aziridinyl) are both genotoxic and allergenic.
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The chromium question
The actual tanning phase, whe- under certain conditions, particles processing has been completed, 42
re the skin is transformed from of trivalent chromium that remain when the skins have been turned
a perishable material into a in an unbound state in the tanned into handbags or shoes. When
non-perishable product, takes skin can change form, changing it occurs during processing, the
place towards the midpoint of the into hexavalent chromium, which, mutation is encouraged by inte-
production cycle and can involve unlike the trivalent form, is highly raction with certain fatty substan-
the use of two broad categories toxic. Most of the compounds of ces used in finishing. When it
of substances: vegetable and hexavalent chromium are irritant takes place after the product has
mineral. 80% of tanning perfor- for the eyes, skin and mucosa. It been finished, it is driven by high
med throughout the world is done is also recognised as a known car- environmental temperatures.
using a specific mineral product, cinogenic agent for human beings The risk of mutation into hexa-
namely chromium. (Group I according to IARC). It is valent chromium increases with
Chromium can take numerous no coincidence that Regulation the quantity of trivalent chromium
forms because of its chemical (EU) No 301/2014 prohibits the remaining in unbound form within
bonds and electrical and physical sale of leather products that con- the skin. For some tanneries, the
characteristics. The form of chro- tain chromium VI in concentrations problem can therefore be avoided
mium usually used in tanning is greater than 3mg/kg. if the best possible tanning proce-
trivalent chromium, which, accor- The change from trivalent chro- dures are correctly applied, and
ding to current scientific knowle- mium to hexavalent chromium can for others the only option is to use
dge, does not raise any particular take place during the final phases tanning products other than chro-
concerns for human health. But of processing of the skins or after mium.
3.10. The problem of wastes
The tanning industry has a major impact on the substances and 9.3-42 GJ of energy40.
environment, not only because of the effects Thus, for each tonne of skins processed, we
generated by the animals providing the skins, obtain 60-250 tonnes of waste water to be
but also because of the vast consumption of purified (with 20-30 kg of chromium and 50
water and the large quantity of biological and kg of sulphide, among others), 1800-3650
chemical wastes produced during the industrial kg of solid residues, 2500 kg of sludge, 4-50
phase. Tanneries in Santa Croce consume kg of solvents in emissions of air. Using
approximately 6 million cubic metres of water these numbers, it is possible to calculate the
each year, taken mainly from the groundwater. ecological footprint of the skins.
For each tonne of rawhide, the industry 40 European Commission – JRC Reference Reports, Best
Available Techniques (BAT) Reference Document for the
obtains 200-250 kg of leather, tanned Tanning of Hides and Skins, Industrial Emissions Directive
2010/75/EU (Integrated Pollution Prevention and Control),
using chromium, which require a total of
edited by Michael Black, Michele Canova, Stefan Rydin,
15-50 tonnes of water, 500 kg of chemical Bianca Maria Scalet, Serge Roudier and Luis Delgado
Sancho, Joint Research Centre, 2013, p. 55.
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The ecological footprint of 1 kg of leather, tanned using chromium
43
An ecological footprint represents the quantity of resources used and the quantity of wastes
produced during the production process of a given good. Leaving aside the farming phase and
concentrating solely on the industrial phase, the following is the environmental cost of each kilo of
leather tanned using chromium.
Water used and to be purified 60-250 litres

Energy used 37.2-210 MJ
Chemical substances used and transformed into wastes to be disposed of 2-2.5 Kg
Solid wastes 4.3-6.15 kg
Until the 1970s, Santa Croce was ruled by was that tanning associations would take
the law of the jungle in environmental terms. care of the construction and management of
The water released from tanneries flowed purification plants while the public local entities
directly into local watercourses, the gases would be responsible for the construction
produced were discharged directly into the and management of the sewerage system.
atmosphere, and organic wastes built up in the Subsequently, everything was transferred to the
large municipal dumps. In the rivers, fish died control of the tanning associations.
in droves, while the inhabitants of the district Today, the district has two major purification
were forced to breathe air full of the bitter smell plants to which the waste water from
of rotten eggs. The breakthrough came through the tanneries is channelled by means of
popular protest, which resulted in the enacting corresponding sewers, one on the left bank
of laws to protect the rivers and the air, which and one of the right bank of the River Arno.
required all entities in the district to take steps The sewer on the right bank is located
to protect the environment and, therefore, the in Santa Croce and is managed by a
health of the people. And while tanneries were consortium, named Aquarno, which is owned
forced to make massive investments to install 93% by companies within the district that
filters and organise initial separation of wastes, use the plant (457 in 2010) and 7% by the
industrial figures and public local entities set Municipalities of Castelfranco, Santa Croce
up a negotiating table to develop a plan for sull’Arno and Fucecchio. The one of the left
disposal of the pollutants and agree on how bank is at Ponte a Egola and is managed by
costs would be divided. The final agreement a consortium called Cuoiodepur, which is
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almost fully owned by 130 companies that use plants have had to do everything possible to
the plant, except for a small stake owned by find alternative solutions.
44
the Municipality of San Miniato. Both have determined that the optimal solution
Along the network connecting the tanneries would be to transform the sludge into reusable
to the two purification plants there are also material, but only Cuoiodepur can say that
intermediate plants, also managed by consortia it has achieved that objective, with 100%
owned by companies within the district. One of the sludge being used in agriculture. But
of the principal ones is at Ponte a Cappiano, this solution works for Cuoiodepur because
managed by the Consorzio Conciatori di the majority of the tanneries to which it is
Fucecchio, made up of about 40 companies. connected perform vegetable tanning, and
The purification systems are designed to clean therefore the water purified in its plant has
the water of chemical and organic pollutants, low levels of chromium and high percentages
before releasing it into natural watercourses. of organic substances. According to the
Although the district has a population of information provided by Cuoiodepur, 90% of
only 110,000, its actual pollutant load to be the dehydrated sludge is recovered for the
disposed of is comparable to that of a city of production of fertiliser, with the extracted
more than three million inhabitants. sludge being mixed with other material
Each year, the Cuoiodepur plant treats 3 such as crushed bones, feather meal, meat
million cubic metres of water, half of which is powder and blood. The other 10% is sent to
industrial wastewater and half civilian. The composing plants, which mix the dried sludge
Aquarno, which is larger, treats 4.5 million with other green material for the production
cubic metres each year, ¾ industrial and ¼ of compost. In conclusion, in 2013, 2014 and
civilian. Using lengthy settling processes 2015, no sludge was sent to dumps, while
and other types of processing, the water is 20% was sent in 2011 and 10% in 2012, to
purified of solid and chemical substances authorised dumps in the Apulia Region.
that are harmful for living things, but a As an illustration of the fact that tanneries
large quantity of waste accumulates in the using chromium present more problems than
form of sludge. Cuoiodepur produces an those using vegetable-based processes,
annual quantity of 13,000-14,000 tonnes Aquarno has had to find other solutions,
of dehydrated sludge and Aquarno 20,000 although it has not achieved the same
tonnes. The problem is what to do with it. The success as Cuoiodepur. Using a special
simplest method would be to throw it in the pipeline, Aquarno pumps the sludge to an
rubbish dump, but that poses huge problems adjacent industrial plant, Ecoespanso. Here,
for the environment. The two purification the sludge is first centrifuged and then treated
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at high temperatures to eliminate the particles firms in the area, such as Organazoto and
of carbon and recompact the remaining Ideaverde, also perform recovery of biological
45
material into new compounds for the building wastes, producing fertilisers for agriculture.
sector. But ultimately only 14% of the sludge The third activity is performed by Waste
ends up as recovered material. Another 41% Recycling, a private industrial company
ends up in dumps and a good 45% is gasified. specialised in the treatment of liquid and solid
When asked about the accuracy of these data, wastes, both hazardous and non-hazardous.
Ecoespanso management refused to respond. The company claims to be equipped to handle
In addition to the purification plants, other the disposal of all major industrial wastes and
facilities supplement the purification and if it can’t, it will resolve the problem by sending
recycling activities implemented in the the wastes to other facilities not just in Italy,
district, in particular three firms designed but also abroad. With regard to the tanning
to treat specific products. The first activity sector, Waste Recycling receives material
is performed by the Chromium Recovery both directly from the tanneries and from
Consortium, a private company whose the purification plants. As the final link in the
members are 240 tanning firms. The purpose chain, its task is to ensure the final elimination
of the company is to recover the chromium of wastes that are difficult to dispose of and,
contained in tanning water brought to it by its although it is equipped with a pyrogasification
members in tanker trucks. The plant is able plant to eliminate everything that can be
to regenerate more than 21 tonnes of basic burned, it is nonetheless forced to send a
chrome sulphate each day, which the tanning large part of the wastes to special dumps
companies then take back to be used in the in Tuscany and other regions of Italy. But it
next tanning cycle. is impossible to know how much, because
The second activity is performed by Consorzio Waste Recycling has refused to provide any
S.G.S. SpA, an industrial concern owned by information on the final destination of the
230 firms from the tanning district, which is sludge passing through its facility. The public
responsible for the recovery and recycling authorities have also been uncooperative, as
of the fleshings and other biological wastes if the management of wastes were a private
obtained during processing of the skins. The matter that can be managed behind closed
plant treats approximately 100,000 tonnes doors. It would hardly be surprising if, every so
of material each year, brought in directly by often, an illegal dump were to be discovered,
tanneries, from which it extracts fats and like the one reported in 2014 near Florence.
proteins resold in the form of products for The tanneries in Santa Croce are also
agriculture and livestock farming. Other small accused of practices of this type.
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In addition to producing wastes and polluted following reports of problems from citizens
water, the tanneries also generate gases and other public authorities. But how efficiently
46
and particles that pollute the air. One of these are performed is still a big question,
these is hydrogen sulphide, which spreads because these bodies do not have sufficient
the characteristic odour of rotten eggs. But financial and personnel resources to perform
many other substances that pollute the air all their required activities.
are produced during various phases of skin It is a fact, in any case, that in the Santa Croce
processing, not only those in the drum. These District, a small purification plant, Ponte a
include volatile organic compounds (VOC), Cappiano, has been able to discharge sludge
substances released during spray-finishing of for years directly into local watercourses
the skins, or dusts generated during certain without ARPAT even being aware of it.
mechanical operations such as shaving and Alarmed at the large-scale death of fish,
grinding and, to a lesser degree, also during an investigation was initiated by the legal
spray-finishing. The law lays down maximum authorities, which resulted in lawsuits against
emission limits for each pollutant substance, certain directors, who were sentenced in July
and companies are therefore required to install 2015 to a number of years in jail.
specific abatement and extraction systems.
We do not have any accurate studies about
the behaviour of the companies in Santa
Croce in this regard. We can only say that
many firms have modernised their operations
and, according to the GreenItaly report, the
incidence of environmental investments on
company turnover has increased from 1.9% in
2002 to 4% in 201041.
Monitoring of compliance with environmental
requirements is performed by the health
authorities and the regional environmental
protection authorities (ARPAT), each within its
own specific area of responsibility. In addition
to readings taken using fixed air, water and
soil monitoring systems, these authorities
perform inspections on their own initiative or
41 Unioncamere, Green Italy - Report 2014.
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Published by:
Centro Nuovo Modello di Sviluppo (CNMS)
Via della Barra, n.32 - 56019 Vecchiano (PI)
Revised edition November 2016
Authors:
Pierpaolo Corradini,
Stefano Gallo,
Francesco Gesualdi.
Design by:
YOGE Comunicazione Sensibile
In collaboration with:
Fair
CHANGE
YOUR SHOES
CHANGE YOUR SHOES is a partnership
of 15 European and 3 Asian organizations.
We believe that workers in the shoe supply
chain have a right to a living wage and to safe
working conditions, and that consumers have a
right to safe products and transparency in the
production of their shoes
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A TOUGH STORY

PART ONE: The International Context 3

1.1. The animal issue 3

1.2. From livestock farming to the production of raw skins 5

1.3. From production to exportation of raw skins 6

1.4. Processing and trading of semi-processed leather 8

1.5. An attempted summary 12

PART TWO: The Italian Context 14

2.1. The sector in terms of size and geographical distribution 14

2.2. The raw material 15

2.3. Cases of vertical integration 16

2.4. Attempts to multinationalise 18

2.5. The emergence of the middlemen 19

PART THREE: The Santa Croce District 21

3.1. Organisational structure and employment 21

3.2. Size and ownership of companies 22

3.3. Diversification and international expansion 23

3.4. Procurement, production and sales 24

3.5. Methods of employment and illegal work 26

3.6. The lives lived by immigrants 30

3.7. Salaries and working hours 34

3.9. Occupational diseases 39

3.10. The problem of wastes 42

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But the quantities of money surrounding the Pork

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Box 1. The environmental impact of farming

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surprising to see that India is the world’s

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Figure 3. Leading exporters of raw cowhides Table 3. Change in EU imports-exports of raw

Source: FAO, World statistical compendium for raw hides

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In the period from 2000 to 2015, the countries 120

the countries of the North have reduced it 20

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1.4. Processing and trading of semi-processed leather

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Box 2. Kenya’s reasons and opposition from Europe

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statistics do not provide clear data in this Taipei 63.326

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where the greatest profits can be achieved. Spain 40.001

Source: http://www.trademap.org (International Trade

Box 3. Focus on Brazil

develop the local tanning industry, Hong Kong Taipei Total

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Box 4. Shoes: the final stage

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2.2. The raw material

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Other France Paraguay

Source: http://www.trademap.org (International Trade

2.3. Cases of vertical integration

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