‘Things are better now’: Foreign workers who said they were exploited while building U.S. consulate in Milan settle for record $35 million

Over 60 foreign laborers, mostly from India, have signed agreements in Milan to receive payouts totaling nearly $35 million as a result of alleged labor abuses during the construction of the U.S. consulate in the city. The settlement, which began on Tuesday, is reportedly the largest ever for labor exploitation in Europe. Each worker will receive an average of 45,000 euros ($50,400), with the highest payout reaching nearly 90,000 euros ($101,000).

The agreement does not constitute an admission of liability by the construction company. The workers were allegedly paid less than $2 an hour, had housing deductions illegally withheld, and were denied overtime for working up to 10 hours a day, six days a week. Additionally, they faced threats and inadequate medical care for work-related injuries.

Many of the workers paid recruiters 5,000 euros ($5,600) to secure the jobs. Caddell Construction, the American company overseeing the project, has cooperated with Italian authorities throughout the process and is working to ensure compliance with labor laws globally. The case also involves two Caddell managers under investigation for extortion and facilitating illegal immigration, who remain under house arrest.

Nearly 480 workers can expect payouts, with some 300 still working on the site, 100 elsewhere in Italy, and the rest in their home countries.