Migrant workers exploitation on flagship US building project in Italy

Foreign workers recruited to build a new $350 million US consulate in Milan say they were promised fair wages but ended up earning less than €2 an hour. As Italian prosecutors investigate alleged labour exploitation, workers describe threats, homelessness and shattered hopes.

A flagship project under scrutiny

A major construction project for a new United States consulate in Milan has become the focus of a widening labour exploitation investigation after migrant workers alleged they were underpaid and mistreated despite promises of fair wages.

Italian prosecutors are investigating Alabama-based Caddell Construction, a leading contractor for US diplomatic facilities worldwide. Two company managers in Italy were recently arrested on suspicion of labour exploitation as part of an inquiry involving around 70 foreign workers, most of them from India.

The $350 million consulate project is one of the largest diplomatic construction sites currently underway in Europe.

Workers speak of broken promises

Several former employees from Kenya and India told investigators they accepted jobs in Milan after receiving employment letters promising annual salaries exceeding €25,000.

Instead, they say they received only a fraction of that amount.

“When you go to the office to ask any question, you are being told: ‘You either work or you are being returned to your country,’” said one Kenyan electrician, whose identity has been concealed for security reasons.

According to workers, wages were further reduced through deductions for accommodation and food, leaving some employees with monthly earnings of around €500.

One Indian electrician's pay slip reportedly listed an hourly wage of just €1.55.

Fear and uncertainty on the construction site

Workers described an atmosphere of intimidation where questioning management could jeopardise both employment and residency.

Some said they were dismissed without explanation and left without housing.

“I stayed with a friend for ten days,” another Kenyan electrician recalled. “I ended up in the street.”

Two workers reportedly now sleep in public parks, while others rely on friends and community support after losing both jobs and accommodation.

Many said they were afraid to speak publicly because of concerns over retaliation and the ongoing investigation.

Prosecutors examine labour practices

The investigation alleges that workers were required to work ten-hour shifts, six days a week, while deductions for room and board significantly reduced their earnings.

Prosecutors are examining whether the company and its subcontractors violated Italian labour laws.

The inquiry is being led by prosecutor Paolo Storari, known for investigations into labour abuses within Italy's luxury goods sector.

Authorities have also questioned whether some employees were recruited under misleading conditions before arriving in Italy.

Union outrage and calls for accountability

Labour unions assisting affected workers have expressed shock at the allegations.

“When I read certain stories and descriptions, I felt sick,” said Laura Malguzzi of the FILLEA-CGIL construction workers' federation.

“I truly had a moment of profound disgust. I asked myself: ‘How is this shamelessness possible?’”

The union plans to seek compensation for workers and recover unpaid wages through legal action.

Malguzzi said the documentation presented by workers appeared to suggest a level of confidence among those responsible that they would not face consequences.

Company and US government respond

Caddell Construction has denied wrongdoing and says it is cooperating fully with Italian authorities while conducting its own internal review.

The company stated that it remains committed to treating and paying workers fairly and ensuring compliance among subcontractors and consultants.

The US State Department has also launched its own investigation.

“The US government does not tolerate labour exploitation,” it said in a statement, adding that American law enforcement agencies are working alongside Italian authorities.

A test for workers’ rights

The case has raised broader questions about labour protections within major international construction projects and the treatment of migrant workers recruited across continents.

For many of the workers involved, the issue extends beyond unpaid wages.

“They can just hire you, and you just go running,” one worker said. “Because you are poor, you have nothing. And you have nothing you can do.”

As the investigation continues, unions and prosecutors say the outcome could become a landmark test of accountability on one of the most high-profile diplomatic projects currently under construction in Europe.