Investigation Into Labor Practices at Milan U.S. Consulate Construction Site

Authorities are investigating claims of labor exploitation by Caddell Construction, an Alabama-based company responsible for building a $350 million American Consulate in Milan. Reports indicate that foreign workers were paid less than $2 an hour, despite promises of fair wages.

Italian Investigation and Arrests

Italian prosecutors, led by Paolo Storari, have launched a probe involving approximately 70 workers, mainly from India. Two managers from Caddell were recently arrested under suspicion of labor exploitation. Prosecutors allege workers were subjected to illegal wage deductions for room and board, despite working long hours. This contradicts the minimum wage requirement for construction workers in Milan, which begins at over $15 an hour.

State Department and Caddell’s Response

The U.S. State Department stated it is collaborating with Italian authorities in the investigation into these allegations. Caddell, acknowledging the accusations, declared its intent to conduct its own investigation to ensure compliance with labor standards globally.

Worker Complaints

Interviews with five former employees revealed claims of wage discrepancies and threats. These workers, who had also worked on an extension of the U.S. Embassy in Nairobi, alleged significant discrepancies between promised and actual pay. Some cited threats of defamation or deportation when challenging management.

Pay and Working Conditions

Workers provided evidence of deductions from their wages for housing and food, worsening their financial position. Unions are now involved in seeking damages to recoup lost wages. As the investigation continues, workers benefit from improved conditions, such as regulated working hours and better pay practices.

The project continues under court supervision. It involves extensive construction and restoration efforts and employs many local workers.

Caddell’s Historical Context

Caddell holds a significant record in constructing U.S. diplomatic missions, especially after post-1998 U.S. embassy bombings necessitated security upgrades. Its current project in Milan adds to its extensive list of previous diplomatic constructions. Workers now emphasize their expectations for fair treatment and appropriate compensation from a reputed U.S. contractor working in Europe.