US Construction Firm Agrees to $35 Million Settlement for Exploited Foreign Workers in Milan

Alabama-based Caddell Construction, the U.S. company contracted to build the new American consulate in Milan, has agreed to a settlement of nearly 31 million euros (approximately $35 million) to compensate foreign workers who prosecutors allege were paid less than $2 per hour. The settlement, signed by Milan prosecutors, Caddell Construction, and a court-appointed administrator, includes back pay and damages for the exploited workers.

The investigation into exploitative labor practices led to the construction site being placed under judicial administration. The criminal investigation against Caddell and two of its managers in Italy remains ongoing, though the company did not immediately respond to a request for comment. Italian Labor Minister Marina Calderone described the probe as "one of the most significant operations in recent years against illegal labor contracting and worker exploitation."

Unions representing the workers hailed the settlement as the largest of its kind in Europe. Luca Stanzione, secretary general of the Milan branch of the CGIL trade union confederation, stated that nearly 300 identified workers will receive an average of 50,000 euros (about $57,000) in unpaid wages and damages for emotional distress, with some receiving up to 90,000 euros ($102,000).

Of the total settlement amount, approximately 19.7 million euros will be directly distributed to workers. The remainder will cover obligations to Italy's social security authorities and labor inspectorate. Most of the affected workers were recruited from India, and some were also recruited from a Caddell embassy project in Africa, according to reports.

Milan prosecutors allege that the workers were consistently exploited. After being promised fair wages during recruitment, their pay stubs reportedly showed earnings of less than $2 per hour, with deductions for food and housing. The minimum wage for construction workers in Milan starts at over $15 per hour.

The new Milan consulate campus is under construction at a former shooting range, replacing the current facility. In addition to the settlement, dozens of workers have been granted unemployment benefits, and 265 have received special residence permits, with applications for the remaining workers being processed, according to the Labor Ministry.