A pay scandal tied to the new U.S. consulate in Milan has produced a $35 million settlement from the project's contractor, and prosecutors allege foreign workers on the site were paid less than $2 an hour, the Associated Press reported (via WRAL).
At the heart of the case are claims that workers were promised decent compensation when recruited, then saw their earnings cut by alleged wage theft and improper deductions.
Here's what to know
Alabama-based Caddell Construction agreed to pay nearly €31 million (about $35 million) to resolve labor-abuse allegations involving the Milan consulate project.
Prosecutors identified nearly 300 workers who are expected to be compensated.
Luca Stanzione, the secretary general of CGIL's Milan branch, told the AP that the typical worker will receive about €50,000 (around $57,000). He said some payments could rise to €90,000 (roughly $102,000) to cover unpaid wages and emotional distress damages.
The AP reported that about €19.7 million ($22.3 million) from the settlement has been earmarked for direct payments to workers. The remainder is meant to satisfy obligations owed to Italy's social security authorities and labor inspectorate.
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Italy's criminal investigation into Caddell and two managers is still active.
The company also remains under administration, and it did not immediately respond to a request for comment.
More background
Prosecutors maintained that most of the workers were recruited in India after being promised fair wages.
Their pay stubs later showed earnings of less than $2 an hour.
Authorities also accused the company of improperly deducting food and housing costs from those wages. By contrast, construction wage floors in Milan start at €13.19 ($15) an hour.
Prosecutors maintained that the workers were "constantly exploited." The AP also interviewed workers who indicated that they were recruited from a Caddell embassy project in Africa.
Italian Labor Minister Marina Calderone described the case as "one of the most significant operations in recent years against illegal labor contracting and worker exploitation," adding that the outcome showed the state would stand by vulnerable workers.
What's being done?
The site was placed under judicial administration to restore legal operations, while the CGIL's construction union has been helping dozens of workers involved in the case.
Unions involved in the case noted that the agreement is Europe's largest settlement of its kind.
"The compensation is an excellent result achieved through the efforts of prosecutors and trade unions," Stanzione told The Associated Press.
Where can I learn more?
These stories look at similar labor abuses, from low pay to coercive working conditions. They cover alleged abuse in fast fashion, agriculture, and e-waste recycling.
• In Shein supplier factories, workers described punishing shifts despite the brand's reform promises.
• In India's sugar industry, women were pushed into unnecessary hysterectomies to keep working.
• In New Delhi, e-waste laborers burn wires bare-handed and inhale toxic fumes for $8 daily.
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