E-commerce giant to pay migrant workers after reports of exploitation in warehouses.
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| critics question Amazon's commitment to ethical labor practices after Saudi Arabia abuse claims. Image: Collected from Amazon |
Amazon will pay $1.9 million to settle claims of human rights abuses against migrant workers in two of its Saudi Arabian warehouses, the company confirmed in a blog post.
The move follows reports by Amnesty International and investigative journalists alleging that workers faced excessive recruitment fees, poor living conditions, and potential trafficking.
Substandard living conditions and recruitment fees
An independent investigation commissioned by Amazon found violations of its own supply chain standards, including "substandard living accommodations, contract and wage irregularities and delays in the resolution of worker complaints".
Amnesty International, in a report published last year, said the workers were "highly likely to be victims of human trafficking" and that Amazon was aware of the high risk for labour abuse in Saudi Arabia but failed to take sufficient action.
The investigation also found that workers were forced to pay illegal recruitment fees of up to $2,040, leading many – primarily from Nepal – to take on high-interest loans.
Amazon's response and ongoing concerns
While acknowledging the settlement, Amazon stated it has "remediated the most serious concerns" and upgraded worker housing.
The company reiterated its commitment to "safe and healthy working conditions" throughout its supply chain.
However, critics point to the relatively small settlement amount compared to Amazon's vast profits and the company's history of labour rights violations and anti-union practices.
Additionally, Amazon recently joined legal challenges against the National Labor Relations Board, the federal agency enforcing US labour law.
The case underscores the ongoing challenges of ensuring ethical labour practices in global supply chains and the need for robust oversight mechanisms.