MILAN — Italian prosecutors are investigating Caddell Construction for alleged labor exploitation related to the construction of a U.S. Consulate in Milan. Two Caddell managers were arrested in Italy on suspicion of labor exploitation.
One manager was arrested while attempting to board a flight to leave the country. The investigation, led by Prosecutor Paolo Storari, involves approximately 70 foreign workers, most of whom are from India. Prosecutors allege that some foreign workers building the U.S. Consulate were paid less than $2 per hour.
Prosecutors also allege that Caddell illegally deducted room and board from wages and required workers to complete 10-hour shifts, six days a week. After these deductions, some workers earned as little as 500 euros monthly. The minimum wage for construction workers in Milan starts at 13.39 euros per hour.
The company stated it is investigating the allegations and cooperating with Italian authorities. A company spokesperson said, "Caddell is committed to treating and paying workers fairly. We will continue to work with authorities in good faith to ensure the welfare of those who work on this important project."
The U.S. State Department stated it is investigating the allegations, and U.S. law enforcement is coordinating with Italian authorities. A State Department spokesperson said, "The U.S. government does not tolerate labor exploitation."
Five former employees provided employment documentation and spoke anonymously. Two Kenyan workers provided employment letters on company stationery that promised annual salaries over 25,000 euros. One Indian worker provided a pay slip listing an hourly wage of 1.55 euros. All five reported being terminated without cause earlier this year, and two of these workers are currently sleeping in public parks.
Construction on the consulate site is proceeding under court supervision. Deductions for room and board have been halted, work hours are capped at 45 per week, and workers are guaranteed two days off. The project includes restoring a century-old building and constructing a five-story facility, gardens, a reflecting pool, and an outdoor gathering area.