Foreign workers say they were paid less than $2 an hour to build a new
US Consulate in Milan
[June 11, 2026] By
COLLEEN BARRY and NICCOLÒ LUPONE
MILAN (AP) — Foreign workers building a sprawling $350 million American
Consulate in Milan were paid less than $2 an hour after being promised
fair wages, according to Associated Press interviews with five former
employees and a review of their employment letters and pay stubs.
Italian prosecutors are investigating Montgomery, Alabama-based Caddell
Construction, a major builder of U.S. diplomatic missions. Two of its
managers in Italy were arrested this month on suspicion of labor
exploitation, one while boarding a flight to leave the country and
another planning to flee, prosecutors said.
The investigation is led by prosecutor Paolo Storari, who also has
spearheaded probes into sweatshops supplying luxury brands. So far only
Caddell has been named as a target, not any of its subcontractors.
The consulate probe was launched about six months ago and involves some
70 workers, mostly from India. Prosecutors allege Caddell illegally
deducted room and board from wages and forced them to work 10-hour days,
six days a week. Some were paid as little as 500 euros (less than $580)
monthly after room and board were deducted, prosecutors said.
Caddell and the U.S. State Department said they are investigating the
allegations and cooperating with Italian authorities.
The consulate project is part of a construction boom in Milan over the
past two decades that has modernized the skyline and raised the
international profile of Italy’s fashion and finance capital.
Workers describe unpaid wages and threats
The AP spoke to four workers from Kenya and one from India at a trade
union center where officials were organizing assistance, including legal
help and housing. The workers provided documentation and spoke on
condition of anonymity out of fear of retaliation and to protect the
ongoing investigation.
The Kenyan workers said they had been hired by Caddell after working on
a multi-million-dollar extension of the U.S. Embassy in Nairobi.
Two showed employment letters on Caddell stationery signed by a company
representative promising annual salaries topping 25,000 euros (nearly
$29,000).
They said they were not paid anything close to that and were threatened
by human resources personnel at the job site after they questioned
management.
“When you go to the office to ask any question, you are being told,
‘Either you work or you will be returned to your country. That’s the
amount you are supposed to be paid,’’’ one Kenyan electrician said. He
added that he was paid just 800 euros ($925) a month after being
promised 2,300 euros ($2,660).
Another Kenyan electrician said he was threatened with defamation after
presenting an AI summary of Italian labor law and was told the 25,000
euros in the employment letter was “for visa purposes,” not a promise of
payment.
US government and Caddell say they are investigating
The State Department said it is investigating the allegations made by
prosecutors and that U.S. law enforcement is working with Italian
authorities.
“The U.S. government does not tolerate labor exploitation,” the
department said in a statement.
Caddell said it was “fully cooperating” with Italian authorities and
conducting its own “comprehensive inquiry into this matter to ensure all
our global subcontractors and consultancies are in compliance with all
labor standards and legal requirements.”
“Caddell is committed (to) treating and paying workers fairly. We will
continue to work with authorities in good faith to ensure the welfare of
those who work on this important project,” the company said in a
statement.
More than a decade ago, Caddell paid millions to the U.S. government to
settle allegations it made false claims to gain access to government
incentives. Caddell did not reply to a request for comment on that case.
Fired workers seek help
All five of the workers who spoke to the AP, ranging in age from their
late 20s to early 50s, said they were fired without cause this year. One
of them said he returned from visiting family in Kenya to find that he
no longer had a job or place to stay.
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A view of the construction site of the new U.S. Consulate in Milan,
Italy, Monday, June 8, 2026, which is under investigation for
alleged exploitative labor practices. (AP Photo/Antonio Calanni)
 Four of the workers were trained
electricians, including the Indian worker whose resume showed he had
more than a decade of experience working for other companies in
Persian Gulf countries.
The Indian worker said he was promised a monthly salary of 2,500
euros (nearly $3,000). Instead, he had a pay slip showing his actual
pay amounted to around 500 euros (less than $580) per month. It
listed an hourly wage of 1.55 euros ($1.80).
The Kenyans said they reached out to authorities after learning of
the investigation.
“I believe in justice,” one said. “Also the workers there should not
be afraid. They should come and speak up.”
Two said they are currently sleeping in parks, while one is staying
with a friend. One said he had been offered a job at a Caddell site
in another country but declined after his treatment in Milan.
Caddell is a major diplomatic contractor
Caddell became a leader in building U.S. diplomatic missions when
the State Department launched a major security upgrade after the
1998 bombings of U.S. Embassies in Tanzania and Kenya killed more
than 250 people.
“Very few contractors can meet the strict requirements to even bid
on secure work necessary for diplomatic facility projects,” Caddell
said on its website marking its 40th anniversary in 2023. At that
point, the firm counted 39 projects in its embassy portfolio valued
at $7.4 billion. It has added four projects since then.
The Milan consulate campus is being built on a 10-acre
(40,000-square meter) site at a former shooting range. The current
U.S. Consulate is in a high-rise building designed by acclaimed
Italian architect Gio Ponti.
Plans for the campus called for about 500 “locally employed
workers,” according to the U.S. State Department. The project
includes restoration of a century-old building, along with a
five-story consulate building, restored gardens, a reflecting pool
and a large outdoor gathering area.
Work is continuing under court supervision. Workers no longer have
their room and board deducted. They are limited to 45 hours and
guaranteed two days off a week.
Pay records appear to bolster allegations
The pay stubs presented by the workers listed apparent charges of
510 euros (around $590) a month for housing and more than 300 euros
(around $350) monthly for food. But those deductions only account
for a portion of the difference between the promised wages and
actual pay.
Unions intend to seek damages for the workers to recover at least
what they earned “through hard work and commitment,” said Laura
Malguzzi, a labor representative at the Fillea Cgil union federation
representing construction workers.
Malguzzi said she was surprised that the pay stubs presented by the
workers appeared to document the alleged exploitation. Union experts
are still studying the documents, which do not conform to Italian
standards, and could not verify their origins.
“They probably had in their minds the absolute certainty that they
were untouchable,’’ Malguzzi said.
The Kenyan workers said they begrudgingly accepted a $200 monthly
salary in Nairobi, where unemployment is rampant. But they expected
better from a U.S. company operating in Europe.
“They can just hire you, and you just go running,” one worker said
of the company. “Because you are poor you have nothing. And you have
nothing you can do.”
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