Caddell Construction Agrees to $35 Million Settlement Over Exploited Labor at Milan Consulate

MILAN — Caddell Construction, the U.S. firm building the new American consulate in Milan, has agreed to a nearly €31 million ($35 million) settlement that will provide back pay and damages to foreign workers. Authorities announced the deal Monday, noting that the workers were allegedly paid less than $2 per hour.

The agreement was signed by Milan prosecutors, Caddell Construction, and a court‑appointed administrator who took control of the site after an investigation into exploitative labor practices.

Caddell remains under judicial administration, and criminal proceedings against the company and two of its managers in Italy continue, according to prosecutors.

Caddell did not immediately comment.

Italian Labor Minister Marina Calderone called the investigation “one of the most significant operations in recent years against illegal labor contracting and worker exploitation,” saying the outcome shows the state will not abandon vulnerable workers.

Labor unions that assisted the workers praised the settlement as the largest of its kind in Europe.

Approximately 300 workers identified so far will receive an average of €50,000 ($57,000), with some receiving up to €90,000 ($102,000) for unpaid wages and emotional distress, said Luca Stanzione, secretary general of the Milan branch of CGIL, a major trade union confederation. “The compensation is an excellent result achieved through the efforts of prosecutors and trade unions,” Stanzione told The Associated Press.

About €19.7 million of the total settlement will be paid directly to workers, while the remainder covers obligations to Italy’s social security authorities and labor inspectorate.

Most of the workers, recruited in India, and some from a Caddell embassy project in Africa, were promised fair wages but received less than $2 per hour, with illegal deductions for food and housing. The legal minimum hourly wage for construction workers in Milan is €13.19 (over $15).

The site was placed under judicial administration to restore lawful operations. The new consulate campus will occupy a 10‑acre (40,000‑square‑meter) former shooting range and replace the current high‑rise location.

Separately, dozens of workers have been granted unemployment benefits, and 265 have received special residence permits, with applications for the remaining workers in process, according to the Labor Ministry.

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