US consulate builder in Milan to pay $35 million over labour probe, document shows

US construction firm Caddell Construction has agreed to pay $35.24 million to settle a labor probe in Italy, according to a document seen by Reuters. The Alabama-based company is accused of exploiting workers at the site of a new US consulate in Milan. Caddell Construction committed to paying nearly €20 million in overtime, accommodation reimbursements, and compensation for non-material damages to workers.

The company did not admit any liability in the settlement. Milan prosecutors and Italy's Carabinieri police accused Caddell Construction of recruiting workers from India through an intermediary, employing them on exhausting shifts, underpaying them, and subjecting them to constant threat of dismissal. The Italian state will recognize residence permits for 270 foreign workers and provide unemployment benefits for 60 workers who were dismissed.

Once the payments are made, Milan prosecutors are expected to seek the dismissal of the case against Caddell Construction's Italian unit.