WORLD

US construction giant agrees to a $35 million settlement for workers building the Milan consulate

Sep 28, 2026, 5:49 AM

FILE - A view of the construction site of the new U.S. Consulate in Milan, Italy, on June 8, 2026. ...

FILE - A view of the construction site of the new U.S. Consulate in Milan, Italy, on June 8, 2026. (AP Photo/Antonio Calanni, File)
Credit: AP Photo/Antonio Calanni

(AP Photo/Antonio Calanni, File)

MILAN (AP) — The U.S. company building the new American consulate in Milan has agreed to a nearly 31-million-euro ($35 million) settlement that includes back pay and damages to foreign workers who prosecutors allege were paid less than $2 an hour, officials said Monday.

The settlement was signed by the Milan prosecutors, Alabama-based multinational Caddell Construction and the court-appointed administrator that took over the construction site following the investigation into exploitative labor practices.

Caddell remains under administration, and the criminal investigation against the company and two of its managers in Italy is continuing, prosecutors said.

Caddell did not immediately respond to a request for comment.

Italian Labor Minister Marina Calderone called the probe “one of the most significant operations in recent years against illegal labor contracting and worker exploitation,” and said the outcome showed that the state would not abandon vulnerable workers.

Unions helping the workers welcomed the settlement, describing it as the largest of its kind in Europe.

Nearly 300 workers identified so far will receive on average 50,000 euros ($57,000), with some receiving up to 90,000 euros ($102,000) in unpaid wages and damages for emotional distress, said Luca Stanzione, the secretary general of the Milan branch of CGIL, a major trade union confederation.

“The compensation is an excellent result achieved through the efforts of prosecutors and trade unions,” Stanzione told The Associated Press. The CGIL’s construction union has been actively helping dozens of workers involved in the case.

Of the total, about 19.7 million euros is earmarked for direct payments to workers, with the remainder covering obligations to Italy’s social security authorities and labor inspectorate.

Most of the workers involved were from India, where they were recruited. The AP also spoke to workers who were recruited from a Caddell embassy project in Africa.

Milan prosecutors say that the workers were constantly exploited. After being promised a fair wage during recruitment, their pay stubs showed that they received less than $2 an hour and that food and housing had been illegally deducted from their wages. The minimum wage for construction workers in Milan starts at 13.19 euros (over $15) an hour.

The building site was put under judicial administration to restore legal operations. The new Milan consulate campus is being built on a 10-acre (40,000-square meter) site at a former shooting range, and will replace the current consulate that is located in a high rise.

Separately, dozens of workers have been granted unemployment benefits, while 265 have received special residence permits and applications for the remaining workers are being processed, according to the Labor Ministry.

World

Associated Press

Pakistani authorities arrest man accused in $126 million US postage fraud scheme

LAHORE, Pakistan (AP) — Pakistani authorities acting on intelligence arrested a man Tuesday accused of running an online counterfeit postage operation that U.S. prosecutors say caused more than $126 million in losses to the U.S. Postal Service, Pakistan’s cybercrime investigation agency said. Faheem Akram, 33, was arrested after a weekslong search involving raids across several […]

2 minutes ago

FILE - A B1 bomber prepares to take off as police officers guard a checkpoint near RAF Fairford air...

Associated Press

2 men rearrested in UK on suspicion of assisting Iran over suspected plot at a US-run air base

LONDON (AP) — British police said Tuesday they have rearrested two men on suspicion of assisting Iran’s intelligence service over the suspected plot at a US-run air base in England last month. Counter Terrorism Policing said the men, a 24-year-old British national and a 25-year-old dual U.K.-Iranian national, were arrested under the National Security Act. […]

48 minutes ago

Associated Press

Rubio and Jaishankar hold talks in Mumbai as US and India aim to finalize trade deal

MUMBAI, India (AP) — U.S. Secretary of State Marco Rubio held talks with Indian Foreign Minister Subrahmanyam Jaishankar in Mumbai on Tuesday as the two countries seek to deepen energy cooperation and move closer to finalizing a trade deal. New Delhi and Washington seek to revive trade negotiations stalled for months by tensions over U.S. […]

6 hours ago

FILE - The smartphone apps DeepSeek page is seen on a smartphone screen in Beijing, Jan. 28, 2025. ...

Associated Press

China defends DeepSeek after US ban of its AI from government systems

HONG KONG (AP) — China hit back Tuesday at a U.S. ban on Chinese artificial intelligence startup DeepSeek’s products for federal civilian agencies, highlighting friction in the two AI powers’ heated technology race. The agencies should remove DeepSeek and its affiliated products, as well as third party products and services developed using DeepSeek, from their […]

8 hours ago

Supporters wait for results at the pro-Canada watch party in Edmonton, Alberta Monday, Oct. 19, 202...

Associated Press

Canada awaits Alberta referendum results after Carney urges voters to reject separation

EDMONTON, Alberta (AP) — Canada awaited results Tuesday from a referendum that could put oil-rich Alberta on a path toward independence, testing Prime Minister Mark Carney’s push for unity amid U.S. President Donald Trump’s trade war and annexation threats. Results were delayed after late openings forced more than 100 polling stations to extend voting hours […]

13 hours ago

Associated Press

Japan and the US kick off joint drills around islands as regional tensions rise

TOKYO (AP) — Japanese and U.S. troops on Monday kicked off one of their largest joint exercises focusing on the defense of Japan’s southwestern islands and showcasing advanced weapons systems in the face of growing tension in the region. About 45,000 Japanese troops and 12,000 American service members are participating in the biennial Keen Sword […]

1 day ago

US construction giant agrees to a $35 million settlement for workers building the Milan consulate