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Caddell Construction to pay €30.9 million over Milan US Consulate labor probe
Caddell Construction, the American firm building the new U.S. Consulate in Milan, has committed to paying approximately €30.94 million ($35.24 million) following a probe into labor exploitation. The settlement follows an investigation by Milan prosecutors into the treatment of hundreds of Indian workers at the construction site.
Of the total amount, nearly €20 million is designated for the workers. This includes roughly €10 million in unpaid wages, €3 million for accommodation reimbursements, and €7 million for moral damages. Additionally, the company will pay over €11 million to Italy’s social security agency (INPS) and the Labour Inspectorate to cover unpaid contributions and sanctions.
The investigation revealed that workers were subjected to grueling 12-hour shifts, six days a week, with effective pay sometimes falling below €2 per hour. Workers also faced monthly deductions of approximately €850 for food and housing. Authorities also reported instances of verbal abuse, physical violence, and intimidation.
While the company has agreed to these payments, Caddell Construction stated that the settlement does not constitute an admission of liability or an acceptance of the legal assessments made by authorities. In response to the investigation, 238 special 12-month residence permits have been issued to the affected workers.
Entities
Caddell Construction · INPS · Milan Prosecutors · Paolo Storari · U.S. Consulate in Milan
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The payment agreement does not constitute an admission of legal or factual liability by Caddell Construction. www.mitomorrow.it · srnnews.com
- [● 3 SOURCES] Workers were subjected to shifts lasting up to 12 hours per day. ameve.eu · www.mitomorrow.it · www.fanpage.it
- [○ 1 SOURCE] Caddell Construction has committed to pay approximately €30.94 million in total. srnnews.com
- [● 2 SOURCES] Authorities issued 238 special 12-month residence permits to the workers involved. ameve.eu · www.fanpage.it
- [● 3 SOURCES] Workers were paid extremely low wages, sometimes between €1.50 and €1.91 per hour. ameve.eu · www.mitomorrow.it · www.fanpage.it
- [● 2 SOURCES] The company will pay over €11 million to INPS and the Labour Inspectorate to cover unpaid contributions and sanctions. ameve.eu · srnnews.com
- [● 2 SOURCES] Workers faced monthly deductions of approximately €850 for food and housing. ameve.eu · www.mitomorrow.it
- [● 4 SOURCES] Nearly €20 million of the total will be paid directly to workers for unpaid wages, accommodation, and moral damages. ameve.eu · www.mitomorrow.it · srnnews.com · www.fanpage.it