Exploitation Allegations Surface at Milan U.S. Consulate Construction Site

Investigations reveal that foreign workers constructing a $350 million American Consulate in Milan received less than $2 an hour despite promises of fair wages. The Associated Press conducted interviews with five former workers and reviewed their employment documents and pay stubs.

Prosecutors in Italy are investigating Caddell Construction, a company based in Montgomery, Alabama. Two of its managers in Italy were arrested. They are suspected of labor exploitation. One was apprehended while trying to leave the country.

Details of the Investigation

Italian prosecutor Paolo Storari is leading the investigation. He has previously investigated sweatshops linked to luxury brands. Caddell is the only named target so far.

The probe began six months ago and involves around 70 workers, mainly from India. It’s alleged that Caddell made illegal deductions for room and board and forced ten-hour workdays for six days a week. Some workers were paid under 500 euros per month after these deductions. According to the Cassa Edile benefits fund, construction workers in Milan should earn a minimum of 13.39 euros per hour.

Caddell’s Response

Both Caddell Construction and the U.S. State Department are investigating the claims. The State Department stated that it does not tolerate labor exploitation and is cooperating with Italian authorities.

Caddell also said it is fully cooperating and conducting a comprehensive inquiry. The company emphasized its commitment to fair treatment and payment of workers.

Workers’ Experiences and Challenges

The Associated Press talked with four workers from Kenya and one from India. They shared their experiences at a trade union center and provided documentation. The workers spoke anonymously, fearing retaliation.

The workers reported being hired by Caddell after working on the U.S. Embassy extension in Nairobi. Employment letters on Caddell’s stationery promised salaries over 25,000 euros annually. However, actual payments were significantly lower.

One Kenyan electrician stated he received about 800 euros monthly instead of the promised 2,300 euros. Another electrician mentioned threats of defamation for questioning the pay scale.

U.S. Government’s Involvement

The U.S. government is working with Italian authorities on this issue. They stress a zero-tolerance policy for labor exploitation. Caddell is also conducting its internal investigation to ensure compliance with labor standards.

Worker Dismissals and Living Conditions

All interviewed workers faced termination without cause. They range from their late 20s to early 50s. One worker returned from visiting family only to find himself jobless and homeless.

Some workers are currently homeless, while others rely on friends for shelter. The workers are hesitant to accept new positions with Caddell after their experiences in Milan.

Caddell’s Construction Legacy

Caddell Construction is a major contractor for U.S. diplomatic missions. The company rose to prominence in the late 1990s. Their projects include a new campus in Milan on a 10-acre site.

The ongoing investigation affects about 500 local workers. The work continues with court supervision. Room and board deductions have ended, and work hours are limited to 45 per week.

Union’s Role and Outlook

Unions are aiming to recover unpaid wages for the affected workers. Laura Malguzzi of the Fillea Cgil union believes the documented pay stubs will bolster the workers’ claims.

The workers expected better conditions working for a U.S. company in Europe. Their experiences reflect broader issues of labor exploitation in global construction projects.