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A court in the Italian city of Milan has upheld an earlier decision placing the Italian arm of US-based Caddell Construction under judicial control amid an ongoing labour exploitation investigation at the US consulate construction site. Prosecutors had earlier introduced emergency measures after allegations that workers recruited from India were subjected to long shifts, low wages, unsafe conditions, and threats of dismissal. The ruling noted possible systemic practices rather than isolated cases. The company has stated that it is cooperating with authorities while oversight and compliance checks continue alongside legal proceedings.
A judge in the Italian city of Milan has confirmed judicial oversight over the Italian unit of US-based builder Caddell Construction, following allegations of worker abuse linked to the construction of the US consulate in the city.
The decision supports an earlier emergency measure introduced by Milan prosecutors, which had placed the company’s local operations under judicial control as part of a wider investigation into labour exploitation across multiple sectors over recent years.
In its ruling, the court observed that available evidence suggested workers recruited from India through intermediaries were made to work extremely long shifts, received low pay, lacked adequate safety protections, and were exposed to dismissal threats. The judge further noted that the treatment described did not appear to be isolated incidents but could reflect an established internal practice within the organisation.
Following these findings, the court appointed a judicial administrator to work alongside the company’s management. The administrator has been tasked with monitoring compliance with labour laws and ensuring that the existing workforce is regularised, while submitting periodic reports to the court.
In response, Caddell Construction stated that it is fully cooperating with local and judicial authorities. It also mentioned that an internal review is being conducted to ensure that all global partners comply with labour standards and legal requirements. The company reiterated that it remains committed to fair treatment and payment of workers.
The US consulate project in Milan began in 2022 under a contract valued at nearly USD 210 million. The project timeline, which was initially expected to conclude in 2025, has now been extended to 2028.
A spokesperson for the U.S. State Department stated that US authorities are working closely with Italian officials in the matter and emphasised that labour exploitation is not tolerated under US law.
Following the introduction of emergency measures earlier, Milan prosecutors also detained the head of Caddell’s Italian operations while he was reportedly preparing to travel abroad, along with a supervisor overseeing the group of Indian workers.
Source Reuters
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