More than 60 foreign workers, mostly from India, secured payouts averaging 45,000 euros ($50,400) each on Wednesday as part of a nearly $35 million settlement over alleged labor abuses during construction of the new U.S. consulate in Milan. The agreements were signed at a Milan hotel, with individual payments set to be made within 30 days, marking the largest labor exploitation settlement in Europe, according to prosecutors.
The settlement was reached last month with Alabama-based Caddell Construction, the American company responsible for the consulate project. Workers signed documents agreeing not to discredit Caddell or disclose individual payment amounts. The highest payout approached 90,000 euros ($101,000). The compensation covers unpaid overtime, reimbursement for illegally deducted housing costs, and significant damages pursued by Prosecutor Paolo Storari. Francesco Brigatti, the court-appointed administrator overseeing the site’s return to legality, noted that damages represent 60–70% of the overtime total, exceeding typical rates.
This settlement highlights growing scrutiny of labor practices in major international construction projects, especially involving migrant workers. The Milan case sets a precedent in Europe for addressing exploitation claims with substantial financial remedies. It also reflects increasing legal accountability for contractors like Caddell Construction, which has faced similar allegations elsewhere. The payout scale surpasses customary damage awards in comparable cases, signaling a shift toward stronger enforcement of labor rights in the region.
The settlement documents, reviewed by The Associated Press, confirm that payments will be disbursed within 30 days of signing. Prosecutor Paolo Storari’s involvement underscores the legal weight behind the agreement. The case’s resolution follows months of investigation and legal action, concluding with this record-setting settlement for labor exploitation in Europe.