Over 480 foreign workers, mostly from India, are receiving compensation from a 31-million-euro settlement linked to the US consulate project in Milan. The payments address claims of wage theft and exploitation, though the contractor, Caddell Construction, maintains no admission of liability. While this resolves civil claims, criminal investigations into the project's management remain ongoing.
Workers primarily from India, employed at the construction site of the new United States consulate in Milan, have begun receiving compensation under a landmark 31-million-euro settlement. This agreement follows an extensive investigation into allegations of labour exploitation during the construction project. The total number of eligible recipients is approximately 480, with many already finalizing the documentation required to receive their funds.
The financial terms provide significant relief to the workers, with individual payouts averaging 45,000 euros. Some workers are eligible for payments reaching as high as 90,000 euros. These funds are designed to cover unpaid overtime, illegal housing deductions, and other damages related to their employment. As part of the settlement process, participants have agreed to confidentiality and non-disparagement clauses regarding their specific payout figures.
Caddell Construction, the Alabama-based firm leading the project, has agreed to the settlement but maintains that the payment does not constitute an admission of liability. Despite this, the case has highlighted systemic issues at the work site. Investigations previously uncovered reports that workers were paid extremely low hourly wages for long shifts, often exceeding 60 hours per week, while being denied overtime pay. Additional allegations surfaced involving threats, inadequate medical support for workplace injuries, and recruitment fees of up to 5,000 euros paid by workers before arriving in Italy, which created cycles of debt.
While the civil settlement provides compensation and secures work permits for the employees to remain in Italy, legal trouble for the company is not over. Italian authorities are continuing a criminal investigation into the project. Two company managers are currently under house arrest, facing charges related to extortion and facilitating illegal immigration.
Beyond individual payments, the settlement requires the company to contribute 11.2 million euros to Italian social security and insurance systems. The US State Department, which commissioned the consulate project, has remained engaged throughout the process. For those observing the case, the primary monitorable will be the progress of the ongoing criminal proceedings against company management and whether further regulatory actions arise from the Italian authorities' review of the site's compliance history.