PRATO, ITALY -- The "Made in Italy" label conjures images of little old men and women in aprons and spectacles, stooped over wooden tables, cutting leather and sewing by hand in workshops that dot the hills of Tuscany.

It certainly doesn't make you picture Chinese immigrants toiling long hours in ramshackle, poorly illuminated sheds, and then sleeping in small rooms behind thin plywood right there in the factories.

These days, the coveted "Made in Italy" label on those Prada bags and Gucci shoes, which can quadruple a price, may not mean what it used to.

Thousands of Tuscan factories that produce the region's fabled leather goods are now operated and staffed by Chinese. Though located in one of Italy's most picturesque and tourist-frequented regions, many of the factories are nothing more than sweatshops with deplorable conditions and virtually indentured workers...