Amazon Settles $1.9 Mn Human Rights Abuse Claims In Saudi Warehouses
Amazon has agreed to a USD 1.9 million settlement to resolve allegations of human rights abuses concerning migrant workers at two of its warehouses in Saudi Arabia. The settlement affects over 700 workers and comes after reports of exploitative labour contracts and substandard living conditions surfaced.
Acknowledging the issue, Amazon released a statement confirming the engagement of a third-party labor rights expert to investigate warehouse conditions. The investigation uncovered numerous violations of Amazon's supply chain standards, including issues related to living accommodations, contract irregularities and delays in addressing worker grievances.
The settlement follows reports from various human rights organisations, including Amnesty International, which detailed alleged abuses experienced by laborers contracted to work in Amazon facilities in the region. These reports highlighted concerns of human trafficking and underlined Amazon's purported awareness of the risks associated with operating in Saudi Arabia.
According to investigations conducted by independent bodies, workers were subjected to exorbitant recruitment fees and were often forced to take out loans with high interest rates to secure employment. Additionally, workers endured squalid living conditions, including overcrowded rooms infested with bed bugs and undrinkable water.
Amnesty International labeled the combination of recruitment fees and associated loans as "human trafficking for the purpose of labor exploitation," in accordance with international standards. Despite Amazon's assertions of remedial action, concerns persist regarding the company's labour practices both in Saudi Arabia and globally.
Amazon's history of labour disputes and anti-union practices has drawn scrutiny from regulators and advocacy groups. The company's recent legal challenge to the constitutionality of the National Labor Relations Board (NLRB) further stresses its contentious stance on workers' rights.
While the settlement amount may seem substantial, critics point out that it translates to just over USD 2,700 per affected employee, a fraction of Amazon's revenues.
