Key facts
- Caddell Construction will pay €30.941 million ($35.24 million) to resolve a probe into alleged worker exploitation.
- The payment includes nearly €20 million for workers' overtime, accommodation, and damages.
- The company will also pay over €7 million to Italy's social security agency and almost €4 million to the Labor Inspectorate.
- The investigation involved allegations of recruiting Indian workers through an intermediary and employing them under exploitative conditions.
- The agreement is expected to lead to the dismissal of the case against Caddell's Italian unit once payments are made.
- Construction on the US consulate in Milan, a $210 million contract, is scheduled to finish in 2028.
US builder Caddell Construction has formally committed to pay €30.941 million ($35.24 million) to resolve an investigation into alleged worker exploitation at the site of the new US consulate in Milan. The Alabama-based company's Italian unit was placed under judicial administration on May 29 following accusations by Milan prosecutors and Italian police of recruiting workers from India through an intermediary and employing them under exploitative conditions, including exhausting shifts, underpayment, and lack of safety protections.
According to a document submitted to prosecutors, Caddell Construction will pay nearly €20 million to workers for overtime, accommodation reimbursements, and compensation for non-material damages. The company also agreed to pay over €7 million to Italy's social security agency (INPS) and almost €4 million to the Labor Inspectorate. Caddell Construction stressed that these commitments do not constitute an admission of wrongdoing or an acceptance of the authorities' legal and factual assessments.
Sources familiar with the matter indicated that the agreement involves the regularization of approximately 500 workers, the issuance of residence permits for 270 foreign workers, and unemployment benefits for 60 dismissed workers. Once the payments are completed, prosecutors are expected to seek the dismissal of the case against Caddell's Italian unit, though they may pursue plea bargain agreements with two arrested executives.
Construction on the $210 million US consulate project in Milan began in 2022, with a revised completion date of 2028. A US State Department spokesperson previously stated that US law enforcement was cooperating with Italian authorities and that the US government does not tolerate labor exploitation. This case is part of a broader series of labor exploitation probes in Italy led by Milan prosecutor Paolo Storari.