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Italy Labor Probe Hits US Consulate Builder

Financial Times Companies •
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Italian authorities have detained a Turkish executive from Caddell Construction, who was attempting to flee the country amid a labor abuse investigation. The probe centers on a $350 million US consulate project in Milan, where prosecutors allege workers were subjected to "quasi-slavery" conditions, earning just €3 per hour after deductions.

The investigation represents the latest in prosecutor Paolo Storari's three-year crackdown on labor exploitation across Italy's supply chains. His office has targeted major companies including Foodinho, Deliveroo, Amazon Italia Transport, and luxury fashion brands like Armani and Dior, which failed to properly oversee contractors.

These cases have forced corporations to take greater responsibility for monitoring suppliers. While some companies resolved issues by strengthening oversight, others faced significant financial consequences. Amazon Italia Transport, for example, paid more than €180 million to tax authorities to avoid an advertising ban, demonstrating the real costs of inadequate supply chain monitoring.