financetom
Economy
financetom
/
Economy
/
Judge upholds oversight of US consulate builder in Milan over labour probe
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Judge upholds oversight of US consulate builder in Milan over labour probe
Jun 9, 2026 5:47 AM

MILAN, June 9 (Reuters) - A judge on Tuesday upheld a decision to place the Italian arm of U.S. builder Caddell Construction under judicial control, as it faces an investigation into alleged worker abuse at Milan's new U.S. consulate site, documents seen by Reuters showed.

The emergency measure was imposed on May 29 by Milan prosecutors -- the latest step in a broad crackdown on labour exploitation across several sectors over the past three years.

In a 38-page ruling, a Milan court judge said that based on available evidence, the Italian unit of the Alabama company had recruited workers in India through an intermediary and put them to work "on exhausting shifts, underpaid, without safety protections and under the constant threat of dismissal".

The judge added that the treatment of workers "does not appear to be the result of occasional initiatives ... but rather a sort of corporate practice".

The court appointed a judicial administrator to work alongside the company's management and report to the judge every three months, with the task of ensuring compliance with labour laws and regularising the existing workforce.

US FIRMS SAYS COMMITTED TO TREATING WORKERS FAIRLY

Caddell Construction said in a statement it was "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".

"Caddell is committed to treating and paying workers fairly", it added in the statement released through its lawyer Andrea Puccio.

Caddell Construction specialises in large-scale projects, including contracts for U.S. embassies and military facilities. According to its website, it has "a portfolio including projects worth more than $24 billion throughout the United States and in 38 countries across five continents".

Construction on the U.S. consulate in Milan started in 2022. The contract was worth almost $210 million and work was initially scheduled to finish in 2025, but this date was subsequently put back to 2028.

A U.S. State Department spokesperson told Reuters that "U.S. law enforcement is working in full cooperation with Italian authorities. The U.S. government does not tolerate labour exploitation".

Days after imposing the emergency judicial measure, Milan prosecutors arrested the head of Caddell's Italian branch as he was about to board a flight to Turkey, as well as one of the supervisors of the Indian workers.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US factory orders rise more than expected in March
US factory orders rise more than expected in March
May 4, 2026
May 4 (Reuters) - New orders for U.S. factory goods rose more than expected in March, led by surging demand for electronics products amid the artificial intelligence investment boom. Factory orders were up 1.5% on the month, the biggest gain since November, from an upwardly revised 0.3% in February, the Commerce Department's Census Bureau said on Monday. Economists polled by...
TrustNFT Research Pegs True Annual Cost of Email Fraud to U.S. Economy at $22 Billion - More Than Seven Times Official FBI Figures
TrustNFT Research Pegs True Annual Cost of Email Fraud to U.S. Economy at $22 Billion - More Than Seven Times Official FBI Figures
May 4, 2026
New white paper argues that official fraud statistics dramatically undercount the true economic burden and calls for policy and private sector response proportionate to the scale of the problem MIAMI, FL / ACCESS Newswire / May 4, 2026 / TrustNFT.io today released The $22 Billion Problem: Email Fraud's True Economic Cost to the American Economy - and the Infrastructure Investment...
U.S. equity fund inflows ease to a six-week low
U.S. equity fund inflows ease to a six-week low
May 4, 2026
May 4 (Reuters) - U.S. equity fund inflows ebbed to a six-week low in the week through April 29 as investors concerned over a surge in crude oil prices exercised caution ahead of a monetary policy decision by the Federal Reserve. According to LSEG Lipper data, investors bought just $911 million worth of U.S. equity funds in their smallest weekly...
Williams says Fed policy well positioned for economic risks, uncertainty
Williams says Fed policy well positioned for economic risks, uncertainty
May 4, 2026
NEW YORK, May 4 (Reuters) - New York Federal Reserve President John Williams said on Monday the U.S. central bank's monetary policy is well positioned to deal with the high level of economic uncertainty facing the economy as a result of the war in the Middle East. The future is difficult to see, and the risks to both sides of...
Copyright 2023-2026 - www.financetom.com All Rights Reserved