U.S. Contractor Cooperates With Italian Probe Into Milan Consulate Labor Payments

Italian prosecutors are investigating allegations that foreign workers on a $350 million U.S. Consulate project in Milan were paid as little as 1.55 euros per hour after being promised annual salaries above 25,000 euros. The probe centers on Montgomery, Alabama-based Caddell Construction.

Two of its managers in Italy were arrested this month on suspicion of labor exploitation, one while attempting to board a flight and another reportedly planning to flee.

Storari is leading the case, which began about six months ago and involves roughly 70 workers, most from India. Authorities allege Caddell illegally deducted room and board from wages and required 10-hour days six days a week. Pay records reviewed by the Associated Press show one worker received about 500 euros monthly after deductions, listed at an hourly rate of 1.55 euros.

Another documented pay of 800 euros against a promised 2,300 euros. >"When you go to the office to ask any question, you are being told, ‘Either you work or you will be returned to your country. That’s the amount you are supposed to be paid,’" one Kenyan electrician stated.

Caddell said it is fully cooperating with Italian authorities and conducting its own inquiry into compliance with labor standards. The U.S. State Department confirmed it is investigating the allegations and that U.S. law enforcement is working with Italian officials.

>"The U.S. government does not tolerate labor exploitation," the department said in a statement. The five workers interviewed, all fired without cause this year, described threats from on-site personnel after questioning pay. Two are currently sleeping in parks; one declined a later job offer from the company.