U.S. Consulate in Milan: 30 million euro compensation for exploited workers

A 30 million euro compensation for workers exploited at the construction sites of the U.S. consulate in Milan. This is stipulated by the agreement signed by the Milan prosecutor's office, the American multinational construction company Caddell, and the court-appointed administrator Francesco Brigatti, placed at the helm of the company by the Court following the investigation into illegal labor brokering. This is the largest settlement of its kind ever reached in Italy using this judicial approach, which has never been used before in Europe.

The agreement will involve all approximately 450 workers from the construction sites, predominantly of Indian nationality, with an average compensation of 50,000 euros per person and peaks of up to 90,000 euros. Workers can access the compensation by signing the agreement by the end of February 2027. In addition to individual compensations, part of the funds will be paid to INPS (National Social Security Institute) and INAIL (National Institute for Insurance against Accidents at Work). Meanwhile, 50 NASpI (unemployment benefits) and 250 residence permits have already been granted to the involved workers.

The criminal proceedings for illegal labor brokering will continue separately, but the two main suspects, Ulas Demir and Aji Appukuttan, have supported the remedial measures. The Milan prosecutor's office, with the support of the Carabinieri's NIL group, had uncovered a system of exploitation involving fictitious salaries, deductions for food and lodging, mistreatment, and threats.

The case originated at the construction site of the new American consulate in the Portello district of Milan, managed by the American construction company Caddell, based in Alabama. The workers, predominantly Indian, had been brought to Italy through a Turkish intermediary and subjected to severe forms of exploitation. The system involved fictitious salaries from which the costs of food, lodging, and the portion to be repaid to the labor boss were deducted, with living conditions marked by abuse and threats.

The investigation by the Milan prosecutor's office, led by prosecutor Paolo Storari with the support of the Carabinieri's Nil group, erupted in June 2026. At the request of the prosecutor's office, the preliminary investigations judge imposed judicial administration on Caddell, a tool used to "cleanse" the supply chain of illegality and force the lead company to implement effective control systems. The company was placed under receivership last June.

After four months of judicial administration, a historic 30-million-euro settlement was reached. This approach represents an absolute novelty in the European judicial landscape, focusing on remedial and compensatory measures rather than solely punitive sanctions. The case highlights how the phenomenon of labor exploitation can also involve major international contracts and necessitates a reflection on control mechanisms within subcontracting supply chains.