A Milan judge on Tuesday affirmed a decision to place the Italian arm of U.S.-based Caddell Construction under judicial control while authorities investigate alleged mistreatment of workers at the construction site for the new U.S. consulate in Milan. The emergency measure was initially ordered by Milan prosecutors on May 29 as part of a wider crackdown on labour exploitation.
In a 38-page ruling, the court said the evidence indicates the company’s Italian unit recruited workers from India through an intermediary and deployed them to perform "exhausting shifts, underpaid, without safety protections and under the constant threat of dismissal." The judge concluded the reported practices cannot be seen as isolated incidents but appear to amount to a corporate pattern.
As part of the decision, the court named a judicial administrator to operate alongside the company’s existing management and to report to the judge every three months. The administrator’s mandate includes ensuring the company complies with labour laws and taking steps to regularise the current workforce.
Days after the emergency measure was put in place, Milan prosecutors arrested the head of Caddell’s Italian branch as he was about to board a flight to Turkey, and also detained one of the supervisors responsible for the Indian workers.
Caddell Construction responded through its lawyer Andrea Puccio, stating the company is "fully and proactively cooperating both with local and judicial authorities, as well as conducting our own comprehensive inquiry into this matter to ensure all our global partners are in compliance with all labour standards and legal requirements." The company also said, "Caddell is committed to treating and paying workers fairly."
Caddell Construction is known for large-scale projects, including contracts for U.S. embassies and military facilities. According to information published on the company’s website, its portfolio includes projects valued at more than $24 billion across the United States and in 38 countries on five continents.
Construction work on the U.S. consulate in Milan began in 2022. The contract for the project was worth almost $210 million. The build was originally expected to be completed in 2025, but that completion date has since been deferred to 2028.
A U.S. State Department spokesperson said U.S. law enforcement is "working in full cooperation with Italian authorities" and stressed that the U.S. government does not tolerate labour exploitation.
The court order and subsequent appointment of a judicial administrator add a layer of external oversight intended to verify compliance with labour regulations and to address the status of the existing workforce while the investigation proceeds.
Contextual note - The judicial control remains in place following the judge’s ruling and the company has indicated it will cooperate with local and judicial authorities, while conducting its own internal review.