Caddell Construction Under Scrutiny: Milan Consulate Project Plagued by Abuse Allegations
MILAN, Italy – A bombshell investigation has rocked the construction of the new U.S. consulate in Milan, as prosecutors have placed the Italian branch of American construction behemoth, Caddell Construction, under judicial control. The firm stands accused of widespread worker exploitation, with a damning 103-page decree detailing allegations of forced labor, abysmal working conditions, and systematic wage theft.
The Carabinieri police, acting on judicial documents seen by Reuters, have imposed judicial control on Caddell Construction’s Italian unit, a move that marks the latest development in Italy’s ongoing crackdown on labor exploitation across various sectors. The decree paints a grim picture of how the company allegedly recruited its workforce in India through an intermediary in New Delhi, only to subject them to “exhausting shifts, underpaid, without safety protections and under the constant threat of dismissal.”
The Recruitment Trap: Promises Unkept and Debts Incurred
The investigation reveals a calculated scheme that began in India. Thirty-five Indian workers, whose testimonies are included in the judicial decree, uniformly stated they were recruited by an employment agency in New Delhi to work as laborers for Caddell in Italy. Each worker was reportedly coerced into paying a staggering 500,000 Indian rupees (approximately $5,225) to secure a 36-month contract and the promise of work in Italy.
“I had to sell my wife’s gold and ask friends and relatives for a loan, which I will then have to repay,” recounted Gopal Nayak, one of the workers, highlighting the immense personal sacrifices made under false pretenses. In India, these workers were made to sign employment contracts in English, stipulating an hourly wage ranging from a meager €1.31 to €1.91, with food and accommodation supposedly covered by the company. Crucially, all workers claimed they did not understand English, and two were entirely illiterate, rendering the initial contracts effectively meaningless to them.
Upon arrival in Italy, workers were presented with a second employment contract, this time with Caddell’s Italian unit. While this document was reportedly compliant with Italian labor law and regularized their entry into the country, it was, according to the workers, never provided to them.
Systematic Exploitation: Long Hours, Low Pay, and Deceptive Deductions
The Carabinieri investigation and witness statements expose a pattern of severe labor abuse. Indian workers were allegedly forced to work 12 hours a day, six days a week, significantly exceeding Italy’s legal limit of 40 hours per week. This grueling schedule was compounded by a deceptive wage structure.
Despite formally earning between €1,300 and €1,500 per month, mandatory deductions for housing and food – expenses they were never warned about – stripped away approximately €800 from their earnings each month. “Every month I sent €300 to India to support my three children, my wife and my brother… I was left with just a bit of money to buy dinner,” stated Manoj Kumar, another worker, underscoring the severe financial hardship endured by those caught in the scheme.
The judicial decree further details threats and mistreatment from team leaders, with no provision for sick leave, creating a climate of fear and vulnerability for the exploited workforce.
Caddell’s Global Footprint and the Milan Project
Caddell Construction, a U.S. construction giant, specializes in large-scale projects, including contracts for U.S. embassies and military facilities worldwide. Its website boasts a portfolio exceeding $24 billion across the United States and 38 countries. The construction of the U.S. consulate in Milan, a contract valued at almost $210 million, began in 2022. Initially slated for completion in 2025, the project’s deadline has since been pushed back to 2028.
In 2025, Caddell’s Italian unit employed a workforce ranging from 311 to 394 individuals, with 316 of them originating from India. By February 2026, the workforce had decreased to 261.
Judicial Control: A Path to Rectification?
The imposition of judicial control does not halt the company’s operations or work at the construction site. Instead, it mandates the appointment of a court-appointed administrator. This administrator’s crucial role will be to ensure compliance with Italian labor laws and to regularize the employment status of the existing workers. The decree is awaiting validation by a judge in the coming weeks.
As of the time of reporting, Caddell Construction, its Italian unit, and the U.S. embassy in Rome have not responded to requests for comment. This ongoing investigation sheds a harsh light on the practices within the construction industry and raises serious questions about corporate responsibility and the protection of vulnerable workers on international projects.
Source: https://www.internazionale.it/ultime-notizie-reuters/2026/05/29/us-consulate-builder-in-milan-hit-by-court-action-over-abuse-allegations
