MILAN – A Turkish executive at the centre of an investigation into the alleged exploitation of migrant workers on the construction site of the new US Consulate in Milan has been arrested while attempting to leave Italy.
Ulas Demir, manager of the Italian branch of US construction company Caddell Construction Co., was stopped at Bergamo’s Orio al Serio Airport on Sunday as he prepared to board a flight to Istanbul with his family. Prosecutors say intercepted communications suggested he was planning to flee the country after learning he was under investigation.
Demir is being investigated for alleged labour exploitation and illegal labour intermediation, known in Italy as caporalato, in connection with the construction of the new US Consulate complex in Milan’s Piazzale Accursio district. Milan prosecutors have already placed the Italian branch of Caddell Construction under judicial supervision while investigations continue.
The case has attracted international attention because it involves a major diplomatic project commissioned by the US government. The new US consulate complex, valued at hundreds of millions of dollars, is intended to become Washington’s main diplomatic hub in northern Italy. Construction began in 2022 and is expected to continue until 2028.
Indian workers working under exploitative conditions allegedly
According to investigators, the alleged victims are primarily Indian workers recruited through an agency based in New Delhi. Judicial documents claim that workers were required to pay around 500,000 Indian rupees – equivalent to several thousand euros – in order to secure employment and obtain the opportunity to work in Italy.
Once in Italy, prosecutors allege that many of the workers found themselves in conditions far removed from what they had been promised. A judicial decree described “repeated violations of the regulations regarding working hours, rest periods and days off” and alleged that workers were subjected to constant pressure to accept the conditions offered.
Investigators say labourers regularly worked 10 to 12-hour shifts, six days a week, significantly exceeding Italy’s standard 40-hour working week. Although workers formally earned monthly salaries of between €1,300 and €1,500, court documents allege that substantial deductions for accommodation and food reduced their actual earnings dramatically. Prosecutors estimate that some workers effectively received between €2 and €4 per hour.
The investigation includes testimony from dozens of workers. According to court documents, many signed contracts written in English before leaving India despite not being able to read the language. Prosecutors also allege that a second contract complying with Italian labour regulations was signed after arrival in Italy but was never provided to the workers.
Authorities further claim that workers were threatened with dismissal and repatriation if they complained about conditions or refused to comply with management demands. The prosecutor’s office argues that the company took advantage of the workers’ vulnerable position and their dependence on employment in Italy.
Deductions leave workers with less than €2 an hour pay
One Kenyan worker employed at the site told Italian media that deductions for accommodation and meals left workers earning less than €2 an hour. “Part of our pay is deducted for room and board, we earn less than €2 an hour, and it’s 2026,” he said. He added that workers felt they had little choice but to continue because economic conditions in their home countries were even worse.
The arrest of Demir came after investigators reportedly intercepted a telephone conversation that prosecutors said demonstrated “a clear desire to flee”. According to court filings, an unidentified caller suggested that returning to Turkey “for a holiday” would be advisable shortly after Demir learned of the investigation. Prosecutors cited the conversation as evidence of a real and immediate flight risk.
Milan chief prosecutor Paolo Storari has become known for a series of high-profile investigations into labour exploitation across Italy’s supply chains, targeting sectors ranging from logistics and food delivery to luxury fashion. The Caddell case represents one of the most prominent investigations to date because of its connection to a major US government project.
US State Department cooperating in investigation
The US State Department has said it is cooperating with Italian authorities and has stated that it maintains a zero-tolerance approach to labour exploitation. American officials are reviewing the allegations while the construction project continues under judicial oversight.
A judge is expected to decide in the coming days whether Demir will remain in preventive detention while prosecutors continue their investigation into the alleged exploitation scheme. Caddell Construction has not publicly responded in detail to the allegations.
