The construction of a new $350 million American Consulate in Milan has come under scrutiny due to labor exploitation claims. Interviews with former workers and examination of their documents revealed they earned less than $2 per hour, despite promises of fair wages.
Italian authorities are investigating Caddell Construction, a Montgomery-based company responsible for constructing U.S. diplomatic sites. Two of its managers in Italy were recently arrested for suspected labor exploitation. Prosecutor Paolo Storari, known for tackling sweatshop conditions, leads the investigation which involves approximately 70 workers, primarily from India.
Prosecutors accuse Caddell of illegal wage deductions for room and board, and of forcing 10-hour workdays for six days a week. Some workers received monthly payments of less than 500 euros after deductions. Milan’s construction worker minimum wage is over 13.39 euros per hour. Both Caddell and the U.S. State Department state they are investigating the allegations and cooperating with Italian authorities.
Workers Report Unpaid Wages and Intimidation
Five workers shared their experiences with the Associated Press, fearing retaliation. These workers, some from Kenya and one from India, were employed by Caddell after work on the U.S. Embassy in Nairobi. Employment letters promised annual salaries over 25,000 euros, yet they received far less.
One Kenyan electrician received only 800 euros monthly instead of the promised 2,300 euros. Another faced threats when questioning management and was informed the 25,000 euros mentioned was solely for visa purposes. Fired workers, now seeking legal assistance, claim unfair dismissal.
Response from Caddell and Authorities
The U.S. State Department and Caddell have pledged full cooperation with the investigation. They claim to ensure compliance with global labor standards. Previously, Caddell settled a case over false claims to access U.S. government incentives.
Fired Workers Struggle Post-Dismissal
The dismissed workers are facing homelessness and financial difficulties. Despite their expertise, they received low wages, often sleeping outdoors. One worker refused a job offer from Caddell in another country, citing his treatment in Milan.
Background on Caddell Construction
Caddell is recognized for constructing U.S. diplomatic missions after the 1998 embassy bombings. They have completed numerous projects valued at billions of dollars. The Milan site spans 10 acres and features a blend of historical restoration and new development. Under supervision, workers are now granted appropriate working hours and days off.
Evidence of Pay Discrepancies
Workers’ pay stubs indicated unauthorized deductions for housing and food, although this did not account for all disparity between promised and actual wages. Unions are seeking compensation for affected workers. Workers expressed disappointment at the disparity between expectations and reality, despite being employed by a U.S. company.