13 hrs ago
Milan Consulate Workers Sign Deals in €31 Million Labor Settlement
Workers who helped build a large U.S. consulate in Milan say they were treated unfairly at work.
Prosecutors say some were paid very little, had money taken from their pay for housing, and did not receive overtime pay.
The workers and construction company Caddell agreed to a €31 million settlement.
Workers who sign agreements are expected to receive money, averaging about €45,000 each.
The agreements also say workers must not publicly criticize the company or reveal their individual payments.
The company says the settlement is not an admission that it did anything wrong.
Nearly 480 workers may receive money, and the investigation is still ongoing.
More than 60 workers signed compensation agreements Wednesday, and 115 had signed over two days.
The agreements distribute part of a €31 million settlement with Alabama-based Caddell Construction over alleged labor abuses.
Workers are expected to receive an average of €45,000, with the largest individual payout approaching €90,000.
Prosecutors allege workers faced very low pay, unpaid overtime, unlawful housing deductions, threats, and inadequate medical care.
Nearly 480 workers may qualify for payouts; the investigation remains open and two managers are under house arrest.
- Who
- Foreign workers, mostly from India, who worked on the Milan U.S. consulate construction site, and Caddell Construction.
- What
- Workers signed agreements to receive compensation from a €31 million settlement over alleged labor abuses.
- Where
- At a hotel in Milan, Italy; the work was at the U.S. consulate construction site.
- When
- Signings began Tuesday; 115 workers had signed over two days, with more signings planned next week.
- Why
- The settlement addresses alleged underpayment, unpaid overtime, unlawful housing deductions, and other alleged mistreatment.
Prosecutors and workers
Caddell Construction
Alleged labor abuses and responsibility
Prosecutors and workers
Prosecutors allege workers were underpaid, denied overtime, charged illegally for housing, threatened, and inadequately treated for job injuries.
Caddell Construction
Caddell's settlement document says the agreement is not an admission of liability; the company has said it is cooperating with Italian authorities and reviewing subcontractors and consultancies.
Key facts
- Settlement
- €31 million
- Average worker payout
- About €45,000
- Largest reported payout
- Nearly €90,000
- Workers who signed
- 115 over two days
- Potential recipients
- Nearly 480 workers
- Social security and injury insurance allocation
- About €11.2 million
- Payout timing
- Individual payments are due within 30 days of signing; prosecutors expect payouts to be completed by February.
- Company position in agreement
- Caddell says the settlement is not an admission of liability.
Quotes
Francesco Brigatti
Court-appointed administrator overseeing the return of the consulate construction site to legality.
“The damages component alone amounts to 60–70% of the overtime total”
livemint.com
“We have never encountered a labor-exploitation system on this scale”
livemint.com
Sources
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