Milan prosecutors announced Monday that Caddell Construction, the Alabama‑based firm tasked with building the new U.S. consulate in Milan, has agreed to a settlement worth almost €31 million ($35 million). The agreement provides back pay and damages to roughly 300 workers who were allegedly paid less than $2 an hour.
Settlement details
The court‑appointed administrator, Caddell, and the prosecutors signed the deal, which allocates about €19.7 million for direct payments to the workers. The remaining funds will satisfy obligations to Italy’s social security authorities and labor inspectorate.
On average, each worker will receive €50,000 (about $57 000), with some individuals slated to collect up to €90 000 ($102 000) for unpaid wages and emotional distress, according to Luca Stanzione, secretary‑general of the Milan branch of the CGIL trade union confederation.
Prosecutorial and union effort praised
Italian Labor Minister Marina Calderone called the investigation “one of the most significant operations in recent years against illegal labor contracting and worker exploitation,” emphasizing that the state will not abandon vulnerable laborers. Unions hailed the settlement as the largest of its kind in Europe, describing it as an “excellent result” achieved through diligent prosecutorial work and union advocacy.
Stanzione added that the CGIL construction union has been actively assisting dozens of workers throughout the case, ensuring they receive the compensation they deserve.
Background on the exploitation
Most of the affected workers were recruited from India, with some arriving via a Caddell‑run embassy project in Africa. Prosecutors allege that after promising fair wages during recruitment, the workers received pay stubs showing earnings well below the legal minimum of €13.19 per hour for construction labor in Milan. Additionally, illegal deductions were taken for food and housing.
The construction site was placed under judicial administration to restore lawful operations. The new consulate campus, spanning a 10‑acre former shooting range, will replace the current high‑rise consulate.
Additional support for workers
Beyond the monetary settlement, dozens of workers have been granted unemployment benefits, and 265 have received special residence permits. Applications for the remaining laborers are currently being processed, according to the Labor Ministry.
The criminal investigation into Caddell and two of its managers continues, underscoring the ongoing commitment of Italian authorities to protect foreign laborers from exploitation.
Original reporting: KTBS 3 (Shreveport) — read the source article.
