Foreign workers say they were paid less than $2 an hour to build a new US Consulate in Milan[html]
A view of the construction site of the new U.S. Consulate in Milan, Italy, Monday, June 8, 2026, which is under investigation for alleged exploitative labor practices. (AP Photo/Antonio Calanni)2026-06-11T05:25:43Z
MILAN (AP) — Foreign workers building a sprawling $350 million American Consulate in Milan were paid less than $2 an hour after being promised fair wages, according to Associated Press interviews with five former employees and a review of their employment letters and pay stubs.
Italian prosecutors are investigating Montgomery, Alabama-based Caddell Construction, a major builder of data-gtm-enhancement-style="LinkEnhancementA" href="https://apnews.com/hub/us-department-of-state">U.S. diplomatic missions. Two of its managers in Italy were arrested this month on suspicion of labor exploitation, one while boarding a flight to leave the country and another planning to flee, prosecutors said.
The investigation is led by prosecutor Paolo Storari, who also has spearheaded probes into data-gtm-enhancement-style="LinkEnhancementA" href="https://apnews.com/article/giorgio-armani-italian-fashion-supply-chain-abuses-exploitation-40cd94429e5a053c500383127a5c4ca2">sweatshops supplying luxury brands. So far only Caddell has been named as a target, not any of its subcontractors.
The consulate probe was launched about six months ago and involves some 70 workers, mostly from India. Prosecutors allege Caddell illegally deducted room and board from wages and forced them to work 10-hour days, six days a week. Some were paid as little as 500 euros (less than $580) monthly after room and board were deducted, prosecutors said.
Caddell and the U.S. State Department said they are investigating the allegations and cooperating with Italian authorities.
The consulate project is part of a data-gtm-enhancement-style="LinkEnhancementA" href="https://apnews.com/article/milan-olympics-legacy-italy-ba1bf6c35ecc5c8fd34a746ff69e4bba">construction boom in Milan over the past two decades that has data-gtm-enhancement-style="LinkEnhancementA" href="https://apnews.com/article/milan-olympics-legacy-italy-ba1bf6c35ecc5c8fd34a746ff69e4bba">modernized the skyline and raised the international profile of Italy’s fashion and finance capital.
Workers describe unpaid wages and threats
The AP spoke to four workers from Kenya and one from India at a trade union center where officials were organizing assistance, including legal help and housing. The workers provided documentation and spoke on condition of anonymity out of fear of retaliation and to protect the ongoing investigation.
The Kenyan workers said they had been hired by Caddell after working on a multi-million-dollar extension of the U.S. Embassy in Nairobi.
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Two showed employment letters on Caddell stationery signed by a company representative promising annual salaries topping 25,000 euros (nearly $29,000).
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Employment documents and a passport belonging to a worker at the construction site of the new U.S. Consulate are seen in Milan, Italy, Monday, June 8, 2026, amid an investigation into alleged exploitative labor practices at the site. (AP Photo/Antonio Calanni)
