In a significant development, Amazon has agreed to pay $1.9 million in a settlement to over 700 migrant workers, addressing claims of human rights abuses arising from exploitative labor contracts at two of the company’s warehouses in Saudi Arabia, as reported by CNBC.
Amazon publicly acknowledged the issue in a blog post, revealing that it had enlisted the services of a third-party labor rights expert to investigate the conditions within the warehouses. The investigation revealed multiple violations of Amazon’s supply chain standards, encompassing “substandard living accommodations, contract and wage irregularities, and delays in the resolution of worker complaints.”
This settlement follows a report by Amnesty International in October, detailing alleged human rights abuses experienced by those contracted to work in Amazon facilities in the region. The report suggested that many impacted laborers were “highly likely to be victims of human trafficking.” It further claimed that Amazon was aware of the elevated risk for labor abuse in Saudi Arabia but failed to take adequate action to prevent such abuses.
Simultaneous investigations by the International Consortium of Investigative Journalists and the Arab Reporters for Investigative Journalism revealed squalid living conditions for these workers, who had to pay illegal recruitment fees of up to $2,040 to secure employment. The exploitative hiring fees, coupled with associated loans, were deemed by Amnesty International as “human trafficking for the purpose of labor exploitation as defined by international law and standards.”
Amazon, in response, asserted that it has addressed the most serious concerns at the two Saudi warehouses, including improvements to housing accommodations. The company emphasized its commitment to ensuring safe and healthy working conditions for all vendors, including responsible recruitment practices.
Despite the $1.9 million settlement figure, which may seem substantial, it amounts to approximately $2,700 per affected employee. To put this in perspective, Amazon’s 2023 revenue totaled $576 billion, averaging more than $1.5 billion each day.
Amazon’s labor practices have frequently come under scrutiny, with accusations of violating labor laws and hindering unionization efforts. The company is currently facing multiple ongoing federal probes into its safety practices and has been fined by federal safety regulators for exposing warehouse workers to unnecessary risks. Amazon’s recent legal filing challenging the constitutionality of the National Labor Relations Board (NLRB) adds another layer to the ongoing debate about workers’ rights within the company.
