Foreign workers constructing a $350 million US Consulate in Milan were paid less than $2 an hour, despite promises of fair wages, according to Associated Press interviews and employment documents reviewed by livemint.com. The project is managed by Montgomery, Alabama-based Caddell Construction, a major builder of US diplomatic missions. The revelations emerged on June 12, 2026.
Italian prosecutors have launched an investigation into Caddell Construction over allegations of labor exploitation. Two company managers in Italy were arrested this month; one was detained while boarding a flight to leave the country, and another was apprehended while attempting to flee. Prosecutor Paolo Storari, who has led previous probes into sweatshop abuses, is heading the inquiry, as reported by livemint.com.
The case highlights ongoing concerns about labor practices in large infrastructure projects, especially those involving foreign workers. Caddell Construction’s involvement in US diplomatic missions places the issue under international scrutiny. This investigation follows similar probes into labor abuses in Italy’s fashion supply chains, underscoring systemic challenges in protecting workers’ rights in high-profile projects.
Prosecutor Paolo Storari’s office continues to investigate the allegations, with the arrests signaling a firm stance against labor exploitation. The outcome of this inquiry could influence regulatory oversight of construction firms involved in US government projects abroad, according to livemint.com.