Exploited Amazon workers in Saudi Arabia received more than $1 million in reimbursements after a third-party licensed labor agency violated the e-commerce giant's Supply Chain Standards.
This was confirmed by the American retailer on Friday, Feb. 23, saying that Abdullah Fahad Al-Mutairi Co. (AFMCO)-a third-party vendor in KSA (Kingdom of Saudi Arabia)-required unfair recruitment fees from applicants.
Amazon said that AFMCO implemented these recruitment fees and other job application costs so that applicants in Saudi Arabia can secure their preferred jobs.
Exploited Amazon Workers in Saudi Arabia Receive Reimbursements
The Guardian reported that Amazon's reimbursement announcement came after a joint media investigation was conducted to expose unfair recruitment practices.
The investigation revealed that more than 50 workers from Nepal were asked to pay stiff recruitment fees, which range from $830 to $2,300, just for them to secure jobs at Amazon warehouses in Saudi Arabia.
Aside from these illegal recruitment fees, Nepali workers who were interviewed also shared that they were misled by the recruiters. Initially, they were promised that Amazon would directly hire them.
But, they ended up working for Saudi labor supply companies instead. They were even placed in short-term contract jobs, which led to their salaries getting siphoned.
To make matters worse, these exploited Amazon workers were required to place thousands of dollars in exit fees just for them to be allowed into their home country.
Because of these revelations, Amazon confirmed that it is giving affected workers $1.9 million in reimbursements.
"As a result of this work, Amazon paid $1.9 million (USD) in reimbursements to over 700 contracted workers," said Amazon via its official press release.
"While we require our vendors to bear the cost of worker-paid recruitment fees, in this case, Amazon provided the reimbursement to expedite repayment to workers impacted," added the American e-commerce giant.
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Amazon's Preventive Efforts
Amazon said that it is making efforts to ensure contractor workers' safety and prevent recruitment risks by insisting third-party vendors uphold its Supply Chain Standards. The retailer's efforts include the following:
- Allowing contracted workers to share concerns directly with Amazon's management by establishing an effective communication mechanism.
- Launching training programs for vendors in KSA so they'll know how to implement Amazon's Supply Chain Standards and how to maintain responsible recruitment practices.
- Amazon reviews third-party vendors' wage policies.
- The retailer enhanced its contracts with third-party vendors to clarify expectations regarding compliance with its Supply Chain Standards.
