Italian Court Places Caddell Construction Unit Under Judicial Oversight Over Worker Abuse Probe

A Milan court has upheld a decision to place the Italian subsidiary of U.S.-based Caddell Construction under judicial administration amid an investigation into alleged labour exploitation at the construction site of the new U.S. consulate in Milan. The ruling follows an emergency measure imposed by Milan prosecutors on May 29 as part of Italy’s broader crackdown on worker abuse and illegal labour practices.

According to a 38-page court ruling, the company allegedly recruited workers from India through an intermediary and subjected them to exhausting work schedules, inadequate pay, unsafe working conditions, and constant threats of dismissal. The judge stated that the alleged mistreatment appeared to be part of an established corporate practice rather than isolated incidents. A judicial administrator has been appointed to work alongside the company’s management and ensure compliance with labour regulations while reporting regularly to the court.

Caddell Construction said it is fully cooperating with Italian authorities and has launched its own internal inquiry to ensure compliance with labour standards. The company reiterated its commitment to treating and compensating workers fairly. Meanwhile, the U.S. State Department stated that American law enforcement agencies are cooperating with Italian investigators and emphasized that the U.S. government does not tolerate labour exploitation. Days after the judicial measure was imposed, prosecutors arrested the head of Caddell’s Italian branch and a supervisor of the Indian workers as investigations continued.