Shady Future for Italian Sunglass Biz

High-end peeper protectors aren't faring too well these days. Two companies in Northern Italy -- Luxottica and Safilo (makers of luxury brand shades like Prada, Ray-Ban, and Ferragamo) -- have been forced to take drastic measures in order to keep afloat. Luxottica, the country's largest sunglass company, recently announced plans to put 6,000 employees on a state-subsidized vacation they hope will offset their economic burden. Things were far worse for Saflio, the country's second-largest shade maker. Last month the company shuttered its factory for a two-month spell. Together the two companies' losses have devastated the northern Italian region, which has long banked on producing luxury brands. But there's good news.

Instead of permanently shutting down factories and firing employees, the Italian government has struck a deal to pay workers on state-subsidized leave (though they will only receive 80% of their regular salaries). Meanwhile, Luxottica is keeping things classy and forking out $3.2 million to cover things like dental care and education costs for employee children while parents drift in limbo. The reasoning is simple, says a Luxottica rep: “The assumption is practical: You cannot deliver and produce quality products unless people enjoy a decent quality of life and have the basic needs fulfilled.” While the company plans to go as far as feeding employees during downtime, the rep cautions, “We’re still in a crisis mode.”