Alabama-based Caddell Construction has agreed to a 31 million euro settlement to resolve labor exploitation claims at its U.S. consulate project in Milan. The case involved underpaying nearly 300 migrant workers, most from India. While this resolves civil issues, the firm remains under court-appointed administration with active criminal proceedings pending against management.
Caddell Construction, an Alabama-based contractor, has committed to a 31 million euro settlement to resolve a labor exploitation case involving its work on the new U.S. consulate construction site in Milan, Italy. The agreement follows a judicial probe that found nearly 300 migrant workers, primarily recruited from India, were paid less than 2 euros per hour. This figure fell significantly below Italy's mandatory minimum construction wage of 13.19 euros per hour.
The settlement covers back pay, damages for workers, and necessary contributions to Italian social security authorities. Of the total amount, 19.7 million euros is specifically designated for the workers, with individual payouts potentially reaching up to 90,000 euros for some workers depending on their circumstances.
For those monitoring international construction projects, the operational risks associated with this case are significant. Caddell Construction remains under court-appointed administration, meaning its day-to-day project management is now subject to strict judicial oversight. This level of supervision is rare and can lead to project delays, increased administrative costs, and potential loss of efficiency on the site.
The legal challenges for the firm are not over. While the settlement addresses civil claims, Italian authorities have confirmed that criminal proceedings against the company and two of its managers remain active. This ongoing legal uncertainty poses a persistent risk to the firm’s reputation and its ability to secure future government contracts, which often require strict adherence to labor and ethical standards.
The Italian Labour Ministry and local unions have treated this as a test case for enforcing migrant labor rights in Europe. The government has also facilitated special residence permits for 265 of the affected workers. Stakeholders in international infrastructure and construction projects should watch for the resolution of the pending criminal cases, as further legal findings could impact the firm's standing and its ability to operate in European markets.