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Foreign workers say they were paid less than $2 an hour to build a new US Consulate in Milan
Prosecutors say 70 workers were underpaid and overworked, and two managers were arrested as unions seek damages and legal help for the laborers.
Italian prosecutors are investigating Alabama-based Caddell Construction for labor exploitation at the $350 million American Consulate in Milan, with authorities arresting two managers this month on suspicion of abuse.
The six-month probe involves some 70 workers, mostly from India, who were promised fair wages but allegedly paid less than $2 hourly; prosecutors allege Caddell forced 10-hour workdays and illegally deducted housing costs.
Five former employees, including four electricians, reported being fired without cause after questioning management; employment letters promised annual salaries near 25,000 euros, yet pay stubs showed actual earnings as low as 500 euros.
Union representative Laura Malguzzi of the Fillea Cgil union federation intends to seek damages for workers to recover lost wages, as construction at the consulate campus continues under court supervision.
The State Department is investigating the allegations alongside Italian authorities, stating the U.S. government does not tolerate labor exploitation, while Caddell said it is "fully cooperating" with the inquiry.
Foreign workers building a sprawling $350 million U.S. consulate in Milan were paid less than $2 an hour after being promised fair wages, according to interviews with five former employees and a review of their hiring letters and pay stubs by The Associated Press.