1,000 Gucci Employees Push Back in Unpaid Bonus Showdown

Luxury fashion powerhouse Gucci has entered stormy waters as 1,000 employees—spanning retail staff, warehouse workers, and logistics personnel across Italy—have declared a “state of unrest”, the formal first step in Italian labor law toward full-scale strike action.

The immediate spark? A dispute over unpaid welfare bonuses, part of a benefits package negotiated for the 2022–2024 period. While past payments were honored, workers allege that the 2025 installment has been withheld. Union leaders accuse Gucci of leveraging this payment as a bargaining chip in a broader renegotiation of incentive plans—something they describe as “unacceptable and disrespectful” to those who keep the brand running day to day.

Union Response: A Boiling Point

The action, backed by Italy’s leading retail unions—Filcams Cgil, Fisascat Cisl, and Uiltucs—has been months in the making.

Under Italian labor regulations, the state of unrest is a formal escalation that allows for a range of industrial actions—picketing, work slowdowns, and eventually, full strikes—if negotiations fail.

Bad Timing for the House of Gucci

The labor showdown comes at a moment of financial and creative transition for the Kering-owned label.

Gucci’s sales plunged 25–26% in the first half of 2025, hit by weaker wholesale demand and a cooling luxury market, particularly in Asia and the US. As competitors like Louis Vuitton, Prada, and Bottega Veneta weather the slowdown with more resilience, Gucci’s challenge is to recapture the cultural clout it commanded in the late 2010s.

CEO Stefano Cantino, appointed in October 2024, and Creative Director Demna, who joined in March 2025, have been tasked with reinventing Gucci’s image for a new generation. But labor unrest of this scale could derail those ambitions—impacting store morale, supply chain efficiency, and ultimately, brand perception.

Beyond Gucci: Industry-Wide Labor Tensions

This is not an isolated incident. The luxury fashion sector in Italy has been experiencing a wave of labor activism, with brands including Armani, Dior, and Valentino facing similar disputes over wages, bonuses, and working conditions. As the spotlight on ethical supply chains intensifies, high-end labels are finding themselves under pressure to not only deliver exquisite craftsmanship but also fair treatment for the people behind it.

For Gucci, the reputational risk is significant. Labor disputes cut against the aspirational narrative luxury brands carefully cultivate—one built on heritage, artistry, and exclusivity. Prolonged unrest could spill into negative headlines, activist campaigns, and consumer boycotts, particularly among socially conscious Gen Z shoppers.

Unions have made it clear: if Gucci refuses to honor the agreed welfare payments without attaching new conditions, they are prepared to escalate to nationwide strikes. This could lead to temporary store closures, distribution delays, and further sales losses during a period when the brand can ill afford setbacks.

So far, Gucci has declined public comment on the dispute. Behind closed doors, however, the brand’s leadership faces a delicate balancing act—preserving financial discipline amid declining revenues while avoiding a public labor battle that could tarnish its global image.

The Stakes

This labor unrest isn’t just about a bonus payment—it’s about trust, respect, and the long-term sustainability of Gucci’s workforce. In the luxury market, where every detail matters, from a handbag’s stitching to the in-store experience, the human element is the brand’s most valuable asset. Mishandling this crisis could cost Gucci far more than the disputed bonuses.

The Uncommon Breed