Italian Prosecutors Investigate U.S. Contractor Over Low Wages at Milan Consulate Site

Italian prosecutors are investigating pay practices at a $350 million U.S. consulate construction site in Milan. Five former workers told interviewers they received monthly pay as low as 500 euros after deductions, despite employment letters promising annual salaries above 25,000 euros.

Two managers employed by the Alabama-based contractor were arrested this month on suspicion of labor exploitation, one while attempting to board a flight out of the country. The probe, launched about six months ago, covers roughly 70 workers, most from India.

The workers said they were required to work 10-hour days, six days a week, and that room and board costs were deducted from their wages. One electrician reported receiving 800 euros monthly after being promised 2,300 euros; another said his pay slip showed an hourly rate of 1.55 euros.

Four of the five workers said they were fired without cause this year. Two reported sleeping in parks after losing both their jobs and housing.

The contractor and the U.S.

State Department said they are investigating the allegations and cooperating with Italian authorities. The State Department stated that the U.S. government does not tolerate labor exploitation. The contractor said it is committed to treating and paying workers fairly and will continue to work with authorities.

Work at the site continues under court supervision, with room and board no longer deducted and hours limited to 45 per week.

Background on the Project The Milan consulate campus is being built on a 10-acre former shooting range and includes a five-story consulate building, restored gardens, and a reflecting pool. The contractor has built 43 U.S. diplomatic facilities valued at more than $7 billion since the late 1990s.