Judicial Control Imposed Amid Labor Abuse Probe at Caddell's Milan Site

An Italian court upheld a decision to place the Italian arm of U.S.-based Caddell Construction under judicial control amidst allegations of worker abuse at Milan's U.S. consulate site. The company is accused of exploiting Indian workers with poor conditions. A judicial administrator will oversee compliance with labor laws.

An Italian judge has ruled to maintain judicial control over the Italian division of U.S. company Caddell Construction, amidst ongoing investigations into alleged labor abuses at the new U.S. consulate site in Milan. Documents reviewed by Reuters indicate that the legal actions are part of broader efforts to tackle labor exploitation.

The measures, implemented by Milan prosecutors since May 29, are part of a larger crackdown on labor abuse in Italy. According to the court ruling, Caddell's Italian unit hired workers from India via intermediaries, subjecting them to long hours and inadequate pay under threat of job loss, labeling it a systemic issue rather than isolated incidents.

Caddell Construction has asserted its commitment to fair labor practices, stating its cooperation with authorities and conducting its own inquiry. Meanwhile, the construction timeline for Milan's U.S. consulate has been extended to 2028. The U.S. State Department has promised full cooperation with Italian investigators.