Labor Relations and Workshop Culture

The treatment of workers in the Chanel workshops presents a complex picture that defies simple categorization. On one hand, Chanel provided better conditions than many competitors: higher wages, cleaner facilities, and greater job security. On the other hand, she demanded absolute loyalty and could be ruthlessly autocratic in her management style.

The physical conditions in Chanel workshops were notably superior to industry standards. The rue Cambon facility featured good lighting, ventilation, and heating—not universal in 1920s Paris. Workers had proper chairs and tables, regular breaks, and access to a cafeteria. These amenities weren't purely altruistic; Chanel understood that comfortable workers produced better quality work.

Wages at Chanel were approximately 20% higher than the couture industry average. Additionally, Chanel instituted a system of bonuses tied to both individual performance and house profits. This profit-sharing arrangement, unusual for the time, created incentive alignment between workers and management. Many Chanel employees could afford to dress better and live more comfortably than their counterparts at other houses.

However, Chanel's management style was decidedly authoritarian. She made unannounced workshop visits, examining work with a critical eye and delivering harsh critiques. Workers who failed to meet her standards were dismissed immediately. She prohibited union organizing and maintained a network of informants who reported on worker attitudes. The atmosphere combined paternalistic care with constant surveillance.

The 1936 strikes that affected all French industry hit Chanel particularly hard. Workers occupied the workshops, demanding better conditions and recognition of union rights. Chanel's response was uncompromising. She viewed the strikes as personal betrayal, given what she considered her generous treatment of employees. When she closed the couture house in 1939, some interpreted it as delayed revenge for the strikes, though she cited patriotic motives.