A $350 million U.S. consulate project in Milan is now mired in claims that foreign workers were paid sweatshop wages under $2 an hour while building an American diplomatic compound in Europe’s financial capital.[1][3]
Story Snapshot
- Foreign laborers on a $350 million U.S. consulate site in Milan say they took home less than $2 an hour after heavy deductions for housing and food.[1][3]
- Italian prosecutors arrested two managers from the main contractor on suspicion of labor exploitation and say some workers earned as little as 500 euros a month.[1][3]
- Workers from India and Kenya report 10-hour days, six days a week, threats of deportation, and firings they say came without cause after they spoke up.[1][3]
- The Alabama-based contractor and the U.S. State Department say they are investigating and cooperating, but have not released full payroll records to the public.[1][5]
How a U.S. Consulate Project Ended Up with $2-an-Hour Wage Claims
Associated Press reporting says five former workers on the new American consulate in Milan described pay that dropped below $2 an hour once room and board charges were taken out.[1][3] The site is a $350 million State Department project run by U.S. contractor Caddell Construction, using mostly foreign laborers from India and Kenya recruited with promises of fair wages.[1][3] Workers gave reporters employment letters and pay stubs that appeared to show very low net pay and large deductions.[1][3]
One Indian worker told reporters he had a pay slip showing an hourly wage of 1.55 euros, about $1.80, with his monthly pay around 500 euros after deductions.[1][3] Another worker from Kenya said he was promised about 2,300 euros per month but received around 800 euros instead.[1][3] Prosecutors say some workers earned roughly 500 euros, or less than $580, per month after room and board, far below local construction wages.[1] Union experts who reviewed the pay records said they did not match standard Italian formats and are still checking the documents.[1][3]
What Italian Prosecutors and Unions Say Is Happening on the Ground
Italian prosecutors in Milan opened a criminal probe roughly six months ago that they say involves about 70 workers, most of them from India.[1] They allege that Caddell managers illegally deducted room and board from wages and forced workers into 10-hour shifts, six days a week, on the U.S. site.[1][3] Two Caddell managers in Italy were arrested on suspicion of labor exploitation, including one detained while trying to board a flight and another who prosecutors say was planning to flee.[1][3]
Local television reporting in Italy described workers earning between 1.1 and 1.55 euros per hour and framed the situation as “slaves” at the American consulate site.[3] Union officials with the Fillea CGIL construction federation say they are organizing legal help and housing, and will seek damages to recover at least what workers earned through their labor.[1][3] Workers told reporters they faced threats of being sent back home if they questioned pay, and all five interviewed said they were fired without cause this year.[1][3]
Where the Evidence Stands and What the Trump Administration Must Confront
The evidence in public view is serious but still incomplete. Associated Press journalists saw employment letters and pay slips that seem to support the workers’ account, yet union experts say the documents do not fully explain the gap between promised and actual wages and have not been fully verified.[1][3] There is no final court ruling yet, and prosecutors have not released detailed charge sheets, so the exact legal case for “labor exploitation” remains under seal.[1]
Caddell Construction and the U.S. State Department both say they are investigating and cooperating with Italian authorities, but they have not publicly released full payroll ledgers, timesheets, or a line-by-line rebuttal of the claims.[1][5] For American conservatives, this raises real questions about oversight of federal projects abroad. A flagship diplomatic complex should not rest on a labor system that even looks like it is using cheap foreign workers in ways that clash with basic fairness, the rule of law, and the values this consulate is supposed to represent.[1][3]
Sources:
[1] YouTube – Foreign workers say they were paid less than $2 an hour to build new …
[3] Web – Foreign workers say they were paid less than $2 an hour to …
[5] YouTube – Workers Paid Under $2 An Hour At Major US Consulate …
