Exploitation Allegations at Milan U.S. Consulate Construction Site

The construction of a $350 million American Consulate in Milan has come under scrutiny after allegations of labor exploitation emerged. Interviews with five former employees and a review of their documents revealed they were paid less than $2 an hour, despite promises of fair wages.

Italian prosecutors are investigating Caddell Construction, a builder of U.S. diplomatic missions based in Montgomery, Alabama. Two managers in Italy were recently arrested on suspicion of exploiting labor. Prosecutor Paolo Storari, who has investigated sweatshops for luxury brands before, leads the probe.

The investigation, launched six months ago, involves around 70 workers, mostly from India. Prosecutors claim Caddell illegally deducted room and board from their wages and forced them to work long hours. Some workers received as little as 500 euros per month after deductions. In contrast, the minimum wage for construction work in Milan exceeds 13 euros an hour. Both Caddell and the U.S. State Department are currently investigating these allegations and are cooperating with Italian authorities.

The construction project is part of Milan’s transformation over the past two decades, elevating the city’s profile in fashion and finance.

Challenges Faced by Workers

The Associated Press interviewed workers from Kenya and India at a trade union center. They provided documentation under anonymity due to fear of retaliation. The Kenyan workers had previously been employed on a U.S. Embassy extension in Nairobi.

While employment letters promised annual salaries exceeding 25,000 euros, workers stated they received much less and faced intimidation when questioning the management. A Kenyan electrician reported earning 800 euros monthly, though promised 2,300 euros. Another worker was warned against defamation when he presented a summary of Italian labor law.

Investigative Steps and Responses

The U.S. State Department confirmed investigations are underway. Caddell has pledged full cooperation with authorities and is conducting a separate inquiry. The company reaffirmed its commitment to fair treatment and pay for workers on this project.

Caddell previously settled over false claims related to government incentives but declined to comment further on that matter.

Struggles of Dismissed Employees

All five workers interviewed faced termination without cause this year. Upon returning from a trip to Kenya, one worker found his employment and housing terminated. Electricians among them had over a decade’s experience yet report receiving only around 500 euros in monthly pay.

The workers approached authorities after learning about the ongoing investigation, with one expressing belief in justice and urging others to speak out. Some face homelessness while others refused further employment with Caddell due to their experiences.

Caddell’s Role in Diplomatic Construction

Caddell emerged as a leading contractor for U.S. diplomatic missions following significant security upgrades after bombings in Tanzania and Kenya in 1998. Caddell has completed numerous embassy projects worth billions and currently continues the consulate construction in Milan.

The Milan site spans 10 acres and includes restoration and new construction. Workers there now face improved conditions, such as regulated hours and no room and board deductions.

Documentation Validates Claims

Pay stubs from workers indicated charges for housing and food, contributing to discrepancies between promised and actual pay. Labor unions aim to recover unpaid wages for the workers. Documents provided by workers, though differing from Italian standards, offer evidence supporting their claims of exploitation.

Workers recount accepting low pay in high-unemployment regions like Nairobi but expected more equitable treatment from a U.S. firm in Europe. A worker remarked on the ease of exploitation, highlighting poverty and lack of recourse as barriers for workers.