Amazon, a massive online retailer, will provide over 700 migrant workers in Saudi Arabia with $1.9 million to address concerns related to their human rights and safety, including inadequate living circumstances and irregular wages. After hiring Verité, Amazon discovered infractions such as poor living conditions and safety concerns at Saudi warehouses. Problems included inconsistent wages, workers paying recruiting fees, and a delayed complaint resolution process. As part of the settlement, AFMCO, a third-party labor organization, will resolve issues and enhance working conditions.
Background of the dispute
In order to resolve allegations of workplace health and safety issues as well as violations of human rights, Amazon has announced that it will pay $1.9 million to over 700 migrant workers in Saudi Arabia. In a blog post, the firm said that it has hired Verité, a third-party labor rights auditor, to look into the working conditions at two warehouses run by outside suppliers in the kingdom. Verité reported finding many infractions of Amazon’s supply chain policies. The company’s supply chain standards were broken by giving workers inadequate housing and by having issues with health and safety in both the housing and the warehouses.
They also included things like inconsistent wages, worker complaints being resolved slowly, and workers having to pay recruiting fees in order to acquire employment contracts. Amazon claimed to have confirmed that AFMCO, the third-party labor provider it employed in Saudi Arabia, has addressed the most pressing issues. “This involved limiting the number of people per room, upgrading fire safety systems, improving living conditions, offering lockers for personal belongings, improving worker housing, and ensuring living conditions meet our standards,” stated Amazon.
Investigation and findings
Workers at Amazon warehouses in Saudi Arabia were allegedly kept in “appalling conditions,” according to a study published by Amnesty International in October 2023. According to the research, Amazon was unable to stop Saudi Arabian contract workers from being subjected to violations of human rights on a regular basis.
This was the case even though the company was for a long while getting direct complaints from employees over their treatment. The majority of the laborers in Saudi Arabia were Nepalis, and they frequently spent months living in filthy, cramped quarters that occasionally had bedbug infestations. Employees at the warehouses claimed they frequently had to move extremely heavy objects. raced to reach demanding performance goals, were closely watched, and in certain situations, were denied enough rest, which led to illnesses and injuries, according to the NGO.
Terms of the settlement
According to the report, a worker who had a suspected fractured arm was approved off from work by a doctor for a month, but he returned to work after two weeks after being refused sick leave. Even though it got as high as 50 degrees, another employee called the accommodations “very dirty” and said there was no air conditioning or fan in the room. “There are a ton of workers but no beds, cooking gas, or water to drink. One person added, “We couldn’t contact our family because there was no internet. The study also stated that because working conditions for Amazon contractors were so bad, some employees even stated they had considered suicide.
Implications for amazon and workers
In a statement, Amazon said that it “is still appreciative of everyone who shared their experiences and worked throughout this process, and especially to those who brought attention to this issue.” The corporation declared, “The safety and well-being of workers throughout our supply chain is our priority at all times.” In a statement, Amazon said that the AFMCO had promised to compensate its employees as per their contracts and to keep them from being relocated to unsatisfactory housing facilities after they stopped working for the company. Additionally, FMCO has committed to putting in place a more reliable mechanism that would allow employees to file complaints with confidence. Through frequent site inspections, we’ll keep an eye on advancements and upgrades,” stated Amazon.
Future of worker rights in Saudi Arabia
In recent years, Amazon’s labor record has been under intense scrutiny. Politicians, lawmakers, and advocacy organizations have focused on how it treats delivery and warehouse employees, claiming that they are subjected to hazardous working conditions. Federal safety officials have punished it for exposing employees to ergonomic dangers in its warehouses, and it is now the subject of many ongoing federal investigations into its safety procedures. Amazon has refuted the claims made by regulators and stated that it is still making investments to ensure worker safety. Additionally, it has stated that it has made strides toward reducing the number of injuries, notably by increasing automation throughout its facilities.