Workers, mostly Indian, building US consulate in Milan agree to record settlement

Foreign construction workers building the new United States consulate complex in Milan have reached a record €31 million settlement to address labor abuses they claim they endured while working for American firm Caddell Construction. Over 60 mostly Indian workers signed agreements on Wednesday, each receiving an average of €45,000 (US$50,400) in compensation.

These payouts encompass unpaid overtime, housing deductions, and substantial damages sought by prosecutors, which make up 60-70% of the total. The settlement, the largest of its kind in Europe, is aimed at rectifying issues such as workers being paid less than $2 an hour, illegal deductions for housing, and denied overtime for working up to 10 hours a day, six days per week.

Prosecutors allege workers faced threats and inadequate medical care when injured on the job. The majority of workers came from India, while others were from Nigeria, Kenya, and Bangladesh. Some had to pay recruiters €5,000 to secure the jobs, but the settlement does not address pre-existing issues in their home countries. Workers from India, meanwhile, reported paying €5,000 to recruiters for the positions.

The settlement, finalized over two days, will be fully disbursed within 30 days. Caddell Construction, which has major contracts for U.S. embassies and consulates worldwide, has cooperated with Italian authorities in the investigation. The U.S. State Department is also closely monitoring the situation. Nearly 480 workers may ultimately receive payouts, with around 300 still working on-site, 100 in other Italian locations, and the remainder in their home nations.