Key facts
- Foreign workers building a $350 million U.S. Consulate in Milan allege they were paid less than $2 per hour.
- Italian prosecutors are investigating Caddell Construction for alleged labor exploitation.
- Two Caddell Construction managers were arrested in Italy on suspicion of labor exploitation.
- Workers claim deductions for room and board and forced long hours reduced their pay significantly.
- The U.S. State Department and Caddell Construction are cooperating with Italian authorities and conducting their own investigations.
Foreign workers involved in the construction of a new $350 million American Consulate in Milan have alleged they were paid less than $2 per hour, according to interviews with former employees and a review of their documents. Italian prosecutors have launched an investigation into Caddell Construction, the project's builder, for suspected labor exploitation.
Prosecutors allege that Caddell illegally deducted room and board from wages and forced workers to work 10-hour days, six days a week. Some workers reportedly received as little as 500 euros (less than $580) monthly after these deductions. Two managers from Caddell Construction were arrested in Italy in connection with the probe.
The investigation, which began approximately six months ago, involves around 70 workers, primarily from India. The U.S. State Department stated it is investigating the allegations and cooperating with Italian authorities, emphasizing that the U.S. government does not tolerate labor exploitation. Caddell Construction also affirmed its full cooperation and commitment to fair labor practices, conducting its own internal inquiry.
Workers who spoke to the Associated Press described being threatened by human resources personnel when questioning their pay and conditions. Some were allegedly told their promised salaries were for visa purposes only. Several workers reported being fired without cause and are now seeking assistance, with some facing homelessness.