Amazon Agrees to Pay $1.9 Million in Compensation to Foreign Workers at Saudi Warehouse to Settle Labor Rights Violation Allegations

In a recent development, Amazon has agreed to provide roughly $1.9 million in compensation for more than 700 foreign workers in its Saudi Arabian warehouses. The compensation program is intended to address a series of human rights abuse allegations against the company, which centered on forcing employees to sign exploitative contracts.

Last year, an independent third-party labor organization called Verite conducted a thorough investigation of two Amazon logistics centers in Saudi Arabia. The investigation uncovered a series of violations of the company's supply chain principles. These behaviors included the provision of substandard accommodations, the existence of contract and payroll irregularities, and delays in addressing worker complaints.

In a report released in October 2023, Verite detailed the harsh working conditions faced by Amazon's Saudi Arabian employees. The report noted that many employees were misled by third-party recruitment agencies into believing that they would be working directly for Amazon, and as a result were forced to pay illegal fees in exchange for job offers.

Verite's report also revealed poor conditions in workers' accommodation, which included overcrowding, unhygienic conditions, infestation and even a lack of basic amenities. In some cases, employees were barred from leaving by third-party recruitment agencies unless they paid a fine. The report also emphasized that many abused employees are likely to be victims of human trafficking.

The report further states that even though Amazon was aware of the high risk of labor abuses associated with operating in Saudi Arabia, the company still failed to take adequate measures to prevent such abuses from occurring.

Amazon responded to the allegations by stating that it had taken action in response to a number of serious issues identified in two Saudi warehouses, including improving accommodation. Amazon emphasized that the company's goal is to ensure that all suppliers have appropriate management systems in place to ensure a safe and healthy work environment, which includes implementing responsible hiring practices.

Notably, in recent years, Amazon has been the subject of controversy over its labor practices. Lawmakers, politicians, and human rights organizations from all walks of life have criticized the working conditions inside Amazon's warehouses, claiming that they are harsh and often force delivery workers to perform strenuous work. In the U.S., the company is facing several investigations into warehouse safety standards. In addition, Amazon has been fined for forcing employees to work in conditions that violate ergonomic principles or use dangerous equipment.

With this incident, Amazon faces a deeper look at its global supply chain management and labor policies. This compensation agreement is not only a reimbursement to affected employees, but also an important reminder of global corporate labor and human rights standards. Amazon and other global companies need to continually assess and improve their work environments to ensure compliance with international labor and human rights standards and prevent similar incidents from occurring in the future.