The construction of a $350 million American Consulate in Milan has come under scrutiny due to allegations of labor exploitation. Foreign workers were reportedly paid less than $2 an hour, despite promises of fair wages. This information comes from interviews with five former employees and a review of their employment letters and pay stubs.
Italian prosecutors are investigating Caddell Construction, an Alabama-based company known for building U.S. diplomatic missions. Two managers in Italy have been arrested on suspicion of labor exploitation. Prosecutor Paolo Storari is leading the investigation, which focuses on the company and not its subcontractors.
Allegations and Investigation
The investigation began approximately six months ago, involving around 70 workers, primarily from India. Prosecutors claim Caddell deducted room and board from wages illegally and made workers toil for 10 hours a day, six days a week. Some workers received only 500 euros monthly after deductions, which is significantly below the local minimum wage for construction workers of 13.39 euros an hour.
The U.S. State Department and Caddell Construction are both investigating these allegations and cooperating with Italian authorities. The construction project is part of Milan’s transformation over the past two decades.
Workers’ Experiences
The Associated Press spoke with several workers, including four from Kenya and one from India. These workers provided pay documentation and spoke on condition of anonymity. Some had worked on a U.S. Embassy extension in Nairobi before joining the Milan project.
Employment letters presented to the workers promised annual salaries of over 25,000 euros, but actual payments were much lower. Workers who questioned their pay reportedly faced threats. One Kenyan electrician was paid 800 euros a month instead of the promised 2,300 euros. Another faced threats of defamation after citing Italian labor law.
Company and Government Response
The U.S. government and Caddell are investigating labor exploitation claims. The State Department emphasized it does not tolerate exploitative practices and is working with Italian authorities. Caddell claims to be conducting its own investigation to meet labor standards globally.
Previously, Caddell settled allegations of false claims to access government incentives. The company has not commented on this past issue.
Impact on Workers
All five workers interviewed have been dismissed this year without cause. They are seeking assistance with housing and legal support. One former worker was offered a job in another country but refused due to his experiences in Milan.
Company Profile
Caddell Construction is a prominent contractor for U.S. diplomatic missions. Their projects include security upgrades following the 1998 U.S. Embassy bombings. The Milan consulate is built on a 10-acre site, transforming the former shooting range into a modern diplomatic campus.
The construction project remains under court supervision. Workers are no longer having room and board costs deducted and are limited to working 45-hour weeks with two guaranteed days off.
Union Actions
Union representatives are working to seek damages for the workers. Laura Malguzzi from the Fillea Cgil union is involved in analyzing pay stubs, which reportedly document cases of exploitation. The documents do not match Italian standards, complicating the verification process.
Kenyan workers expressed dissatisfaction with their treatment, comparing it to their experience of low pay in Nairobi, expecting better standards in Europe.
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