Alabama company allegedly paid Kenyan workers $2 an hour to build US consulate, threatened to deport them

A Montgomery-based construction firm is currently under intense scrutiny following allegations that it exploited foreign laborers during the construction of a major U.S. diplomatic project in Milan. Italian prosecutors have launched an investigation into Caddell Construction after reports surfaced that workers were paid as little as $2 an hour, despite being promised significantly higher wages.

Allegations of Labor Exploitation

The investigation, spearheaded by prosecutor Paolo Storari—who is known for uncovering sweatshop conditions in the luxury fashion industry—centers on the treatment of approximately 70 foreign workers, primarily from India and Kenya. Prosecutors claim the company forced employees into 10-hour workdays, six days a week, while illegally deducting room and board from their already meager earnings.

Employment letters reviewed by investigators suggested annual salaries reaching 25,000 euros (nearly $29,000). However, affected workers report that their actual take-home pay was far lower, sometimes dropping below $580 monthly after deductions. When workers attempted to challenge these practices, they were reportedly threatened with deportation.

Legal Fallout and Corporate Response

Two managers associated with Caddell Construction were arrested in Italy this month as they attempted to leave the country. While Caddell, a prominent builder of U.S. diplomatic missions, remains the focus of the probe, the company has publicly stated that it is fully cooperating with Italian authorities. In an official statement, the company emphasized its commitment to fair pay and noted that it is conducting its own comprehensive inquiry into the matter.

The U.S. State Department echoed these sentiments, asserting that it does not tolerate labor exploitation. The Milan consulate project, part of a massive construction boom that has modernized the skyline of the Italian city, is now operating under court supervision to ensure labor standards are met. New protections for the workers include a 45-hour work week limit and guaranteed rest days.

Impact on Workers

For many of the workers involved, the experience has been devastating. Several reported being fired without cause earlier this year, leaving some without housing or financial resources. As labor unions continue to organize support and provide legal assistance, the workers remain hopeful that justice will be served.

Caddell, which has been a primary contractor for embassy construction since the 1998 embassy bombings in Tanzania and Kenya, previously faced legal trouble over a decade ago regarding allegations of false claims for government incentives. The investigation into the Milan consulate site remains ongoing.