Key facts
- Over 115 foreign workers building the U.S. consulate in Milan have signed agreements for a €31 million settlement.
- The settlement averages €45,000 (US$50,400) per worker.
- The payouts cover unpaid overtime, housing deductions, and damages.
- Caddell Construction, the American company involved, agreed to the settlement.
- The settlement is considered the largest ever for labor exploitation in Europe.
- Workers are also receiving permits to work in Italy.
Foreign workers, predominantly from India, who were involved in building the new U.S. consulate compound in Milan have begun signing agreements to receive a substantial settlement for alleged labor abuses. The deals, averaging €45,000 (US$50,400) per worker, are part of a €31 million (nearly US$35 million) agreement reached last month with Alabama-based Caddell Construction.
Over 115 workers had signed the documents by Thursday, with the process continuing into the following week. The payouts are intended to compensate for unpaid overtime, illegal deductions for housing, and damages sought by prosecutors. The highest individual payment reached nearly €90,000 (US$101,000).
Prosecutors allege that workers were paid less than $2 per hour, subjected to illegal housing deductions, and denied overtime for working up to 10 hours a day, six days a week. Some workers also reported threats and inadequate medical care for job-related injuries. While most workers were from India, others hailed from Nigeria, Kenya, and Bangladesh. The settlement does not directly address abuses related to recruitment fees paid in India, as prosecutors lacked jurisdiction there.
Caddell Construction, a contractor for U.S. embassies and consulates globally, is cooperating with Italian authorities. The company stated that the settlement is not an admission of liability. The investigation against Caddell remains open pending the completion of payouts, expected by February. Two managers are currently under house arrest as part of the ongoing investigation into extortion and facilitating illegal immigration.
The settlement also includes approximately €11.2 million (US$12.5 million) for Italy's social security and workplace injury insurance funds. As part of the agreement, the workers will receive permits to work in Italy, even outside of Caddell's projects.