US Consulate Builder Faces Milan Labor Probe Over Indian Worker Abuse, May 30

Milan prosecutors placed the Italian branch of US construction giant Caddell Construction under judicial control on May 29 over allegations of systematic worker exploitation at the new US consulate site. The 103-page decree accuses the Alabama-based firm of recruiting 316 Indian workers through intermediaries, paying them below poverty wages, and threatening deportation if they refused exploitative conditions. A court-appointed administrator will now oversee the company’s operations.

How Workers Were Recruited and Exploited

Caddell Construction recruited workers in India through Dynamic House, a New Delhi intermediary, promising dignified wages. Each worker paid 500,000 rupees (about 5,000 euros) for visas and permits. Once in Milan, workers faced exhausting shifts, wages below 2 euros per hour, no safety protections, and threats of dismissal or deportation to India if they complained. Statements from 35 Indian workers confirmed these conditions in court documents.

Scale of the Investigation and Project Details

In 2025, Caddell’s Italian unit employed between 311 and 394 workers, with 316 from India. By February 2026, the workforce dropped to 261 people. The US consulate project began in 2022 with a contract worth nearly 210 million dollars. Work was initially scheduled to finish in 2025 but has been delayed to 2028. The 40,000-square-meter project sits on the former Tiro a Segno shooting range in Milan’s Portello district.

Judicial Control and Company Response

Milan prosecutors Paolo Storari and Mauro Clerici imposed emergency judicial control, which does not halt operations but places a court-appointed administrator alongside management. The decree must be validated by a judge in coming weeks. The administrator will ensure labor law compliance and regularize existing workers. Caddell Construction, its Italian unit, and the US embassy in Rome did not immediately respond to requests for comment.

Broader Context of Labor Crackdowns

This investigation represents part of a three-year broad crackdown on labor exploitation across Italian business sectors. Prosecutors described a “recurring criminal mechanism” that systematically violated working hour regulations, rest periods, and wage standards. Workers were housed in residences in Garbagnate Milanese and Pieve Emanuele and subjected to systematic wage deductions beyond what contracts promised.

Final Thoughts

Milan’s judicial control of Caddell Construction signals intensified enforcement against labor abuse in Italy’s construction sector. The case exposes vulnerabilities in international project oversight and sets a precedent for holding foreign contractors accountable under Italian labor law.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.