Caddell agrees to $35 million settlement in Milan consulate labor probe

Caddell Construction, the Alabama-based contractor building the new U.S. consulate in Milan, has agreed to pay €30.941 million (about $35 million) in a labor-exploitation investigation. Prosecutors allege workers recruited in India were subjected to long shifts, very low pay, unsafe conditions and threats of dismissal; Caddell says its commitments do not admit wrongdoing or accept the authorities’ findings. Nearly €20 million is designated for worker compensation, including unpaid overtime, housing costs and damages, with the rest going to Italian social-security and labor authorities. Reports say the agreement also provides for employment regularization for about 500 workers, recognition of residence permits for 270 and unemployment benefits for some dismissed workers. The Italian unit remains under judicial administration, and reports differ on the case’s next step: prosecutors say the broader criminal investigation continues, while sources cited by Reuters say the case against the unit is expected to be dropped after payment.