Milan US consulate labour ‘exploitation’ case: Indian workers among hundreds agree to share of $35m payout
NEW DELHI: More than 100 construction workers, most of them from India, are set to receive payouts from a 31-million-euro (nearly $35 million) settlement reached with an American construction company over alleged labour exploitation at the site of a new US consulate compound in Milan.Over 60 workers, mostly Indians, signed agreements at a Milan hotel on Wednesday to receive their share of the settlement with Alabama-based Caddell Construction. The signing process began on Tuesday, with 115 workers having signed agreements over two days. The procedure will continue next week, reported Associated press.Prosecutors have described the settlement as the largest ever reached over labour exploitation in Europe. Nearly 480 workers could eventually receive payouts, including about 300 still working at the Milan site, another 100 working elsewhere in Italy and others who have returned to their home countries.The individual payouts average around 45,000 euros (about $50,400), with the highest reaching nearly 90,000 euros (about $101,000), according to Francesco Brigatti, the court-appointed administrator overseeing efforts to bring the construction site into legal compliance.The payments include unpaid overtime, reimbursement for housing costs that were allegedly illegally deducted from workers’ wages and damages sought by investigating prosecutor Paolo Storari. Brigatti said the damages component alone accounts for 60-70% of the overtime amount, significantly higher than the 10-30% he said is more customary in such cases.For Dilip Ram, a 43-year-old mason from Bihar who has worked at the Milan consulate site for more than two years, the settlement could make a significant difference to his family back home.“Things are better now than before … we get more rest now,” Ram said after signing the agreement, as quoted by AP, adding, “This has led to a lot of change. This settlement will be good. Because the workers had troubles, that’s why this settlement has been applied.”What prosecutors allegedItalian prosecutors allege that workers at the project were paid less than $2 an hour, had money illegally deducted from their wages for accommodation and were denied overtime despite working up to 10 hours a day, six days a week.The workers were also allegedly subjected to threats and did not receive proper medical care after workplace injuries, prosecutors said.Most of the workers were from India, while others came from Nigeria, Kenya and Bangladesh. Indian workers told authorities they had paid recruiters around 5,000 euros (about $5,600) to secure the jobs. However, the settlement does not directly cover alleged abuses in India because Italian prosecutors could not investigate those claims.Each worker signed a document agreeing not to discredit Caddell and not to disclose the amount of their individual payment. Caddell said in the agreement that the settlement did not constitute an admission of liability. Payments are expected to be made within 30 days of each worker signing the agreement.The investigation into Caddell remains open pending completion of the payouts, which are expected to be completed by February. Two managers under investigation for alleged extortion and facilitating illegal immigration remain under house arrest.Workers to get Italian work permitsThe settlement also includes about 11.2 million euros $12.5 million) for Italy’s social security system and workplace injury insurance.As part of the arrangement, workers will also receive permits allowing them to work in Italy outside the Caddell project.“We have asked the Indian consulate to help,” said Adelio Riva, a labour lawyer working as a consultant for the prosecutor’s office. “We are relying heavily on word-of-mouth because, as they say, follow the money.”The three construction-worker trade unions involved in assisting the workers are also monitoring the settlement process.Union organiser Trifone Radogna of Feneal Uil said workers had initially been denied union access at the consulate construction site, with diplomatic status cited as the reason. He said unions had never previously been barred from informing workers of their rights at construction sites in Milan.“We have never encountered a labour-exploitation system on this scale,” Radogna said.“Here workers’ dignity was lost: they found themselves without accommodation, without meals, and they were already starting at a disadvantage because they had to pay 5,000 euros before leaving.”Caddell, US government responseCaddell, a major contractor for US embassies and consulates worldwide, said it was cooperating with Italian authorities and reviewing its global subcontractors and consultancies for compliance with labour laws.“Caddell continues to cooperate in good faith with the appropriate authorities throughout this process, and we remain focused on the care and well-being of the people working on an important project,” the company said on Wednesday.The US State Department has said it is investigating the allegations and that US law enforcement agencies are working with Italian authorities. Last week, it said it was following the case closely.“The US government has zero tolerance for illegal activity,” the State Department said.
