An American construction company involved in building the new US consulate in Milan has agreed to pay nearly €31 million ($35 million) to settle a case involving alleged exploitation of foreign workers.
The settlement involves back pay and damages for workers whom Italian prosecutors accused of receiving less than $2 an hour while working on the consulate project.
The agreement was reached between Milan prosecutors, Alabama-based multinational Caddell Construction and a court-appointed administrator overseeing the construction site following an investigation into alleged labour exploitation.
Caddell remains under administration, while the criminal investigation involving the company and two of its managers in Italy is still ongoing, according to prosecutors.
The company had not immediately responded to a request for comment.
Italian Labour Minister Marina Calderone described the investigation as “one of the most significant operations in recent years against illegal labor contracting and worker exploitation.”
She said the outcome demonstrated that authorities would continue to protect vulnerable workers.
Trade unions involved in supporting the affected workers welcomed the settlement, describing it as the largest of its kind in Europe.
Luca Stanzione, secretary general of the Milan branch of CGIL, one of Italy’s major trade union confederations, said nearly 300 workers identified during the investigation would benefit from the agreement.
The workers are expected to receive an average of about €50,000 ($57,000) each, while some could receive as much as €90,000 ($102,000) in unpaid wages and compensation for emotional distress.
“The compensation is an excellent result achieved through the efforts of prosecutors and trade unions,” Stanzione told The Associated Press.
CGIL’s construction union has been assisting dozens of workers connected to the case throughout the investigation.
Of the total settlement, approximately €19.7 million will go directly to the affected workers.
The remaining amount will be used to meet obligations owed to Italy’s social security authorities and labour inspectorate.
The settlement follows an investigation into labour practices at the Milan construction project and comes as Italian authorities continue their criminal case against Caddell and two of its managers.
