US consulate builder in Milan to pay $35 million over labour probe, document shows
MILAN: US builder Caddell Construction has formally committed to pay €30.941 million ($35.24 million) in a probe into alleged worker exploitation at the site of the new US consulate in Milan, a document seen by Reuters showed. The Alabama-based construction giant undertook to pay nearly €20 million to workers in overtime, accommodation reimbursements and compensation for non-material damages,…
US construction firm Caddell Construction has agreed to pay $35.24 million over allegations of worker exploitation at the site of the new US consulate in Milan, according to a document seen by Reuters. The Alabama-based company committed to paying overtime, accommodation reimbursements, and compensation for non-material damages to nearly 500 workers affected by the probe.
A spokesman for Caddell Construction declined to comment on the matter. The company, which specializes in large-scale projects including US embassies and military facilities, initially faced an investigation on May 29 and was subsequently placed under judicial administration. Prosecutors accused Caddell of recruiting workers in India through an intermediary and subjecting them to exhausting shifts, underpayment, lack of safety protections, and threats of dismissal.
The agreement also includes the regularization of around 500 workers, recognition of residence permits for 270 foreign workers, and 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's Italian unit.
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