Milan Labor Exploitation Probe: Caddell Construction to Repay Workers
Milan, Italy – In a significant development, the Italian division of Caddell Construction, a major American firm, has been ordered to repay its underpaid workers at the construction site of the new US Consulate General in Milan. This comes after a judicial control order was issued by the Milan Prosecutor’s Office on allegations of labor exploitation, a decision confirmed by Gip Angelica Cardi.
The investigation, spearheaded by prosecutors Paolo Storari and Mauro Clerici, revealed that Indian construction workers at the Piazzale Accursio site were being paid as little as two euros per hour, despite official contracts. Furthermore, they endured “degrading” working conditions, marked by “threats and denials,” with injuries leading only to on-site “treatment and medicine” and immediate orders to resume work under threat of deportation back to India.
The Mechanism of Exploitation: Deductions and Deceptions
The immediate impact of the prosecutor’s intervention will be felt in the June payroll, where workers will see an effective increase of 850 euros per month. This is not a pay raise, but rather the cessation of illegal deductions from their salaries. Turkish foremen of the American company were reportedly siphoning off 500 euros monthly from the Indian workers. This was achieved by having them sign automatic bank direct debits for housing, which, according to their contracts, should have been covered by the employer. An additional 350 euros in cash was also being extracted for food.
Going forward, Caddell Construction is committed to enforcing the standard 40-hour work week as stipulated in the contracts. Moreover, the company has pledged to recalculate all past working hours for each laborer – many of whom worked up to 60 hours a week – and settle outstanding arrears. For some workers, this could mean an additional 2,000 euros in their June pay, combining the halted deductions and recovered back pay.
Caddell’s Response and Internal Investigation
The American giant, with an annual turnover of 1.5 billion, issued its first official statement yesterday. Andrea Puccio, Caddell’s lawyer, is working with judicial administrator Francesco Brigatti to rectify the situation brought to light by the Carabinieri’s Labor Protection Command investigation. The probe notably led to the arrest of a Turkish and an Indian manager who were attempting to leave Italy.
Caddell Construction stated, “For over 40 years, Caddell Construction has successfully delivered some of the largest and most complex projects in the United States and worldwide. We have always strived to foster a corporate culture based on valuing all our workers, with particular attention to effective safety and training, fair treatment, and long-term professional growth opportunities.”
Addressing the investigation into the Consulate site, Caddell confirmed it is “conducting a thorough review of the concerns raised in relation to one of our ongoing projects in the European Union, which we are treating with the utmost seriousness. In agreement with our client, we are already collaborating fully and proactively with the judicial authorities and local authorities; and conducting a thorough internal investigation to ensure that all our global partners operate in full compliance with all standards and legal requirements regarding working conditions, as well as respect for human dignity, principles that have always characterized Caddell.” The company concluded by reiterating “its commitment to ensuring fair treatment and proper remuneration for workers.”
The Broader Implications of Labor Exploitation
This case highlights the persistent issue of labor exploitation, even within the projects of seemingly reputable international companies. The detailed nature of the deductions and the conditions imposed on workers underscore a systemic failure to protect vulnerable laborers. The intervention of the Milan Prosecutor’s Office serves as a crucial reminder of the importance of robust legal oversight and the need for companies to uphold ethical labor practices across all their operations.
The ongoing judicial control and internal investigation will determine the full extent of the exploitation and the measures required to prevent future occurrences. The commitment to repaying workers and regularizing their conditions is a positive step, but the underlying mechanisms that allowed such exploitation to occur demand continued scrutiny.
Sources: Investigative journalism, documents from the Milan Prosecutor’s Office, statements from Caddell Construction, reports from the Carabinieri’s Labor Protection Command.
