Amazon’s $1.9 Million Settlement: Addressing Migrant Worker Violations in Saudi Warehouses
Watan-After media reports of violations against migrants who worked in Amazon warehouses in Saudi Arabia, the online retail company announced paying $1.9 million to hundreds of current and former workers.
The company issued a statement saying it had paid more than 700 migrant workers, who were asked to pay recruitment fees and other costs to secure employment at the company’s distribution centers in Saudi Arabia, according to the British newspaper The Guardian.
The company affirmed its commitment to “fundamental human rights and the dignity of individuals associated with its operations worldwide.”
It’s worth noting that Amazon has previously disclosed employing approximately 1,500 permanent and seasonal workers in Saudi Arabia.
Widespread Violations
The company’s move came following joint media investigations into violations against workers.
The Guardian quoted all 54 Nepalese workers interviewed in the investigations as saying that recruitment agencies in their homeland demanded hefty fees ranging from $830 to $2,300 as a condition for jobs at Amazon in Saudi Arabia.
These amounts far exceed what is permitted by the Nepalese government, the United States, or the United Nations.
According to the newspaper, Nepalese workers explained that they were misled about their work conditions and were told they would work directly for Amazon, but ended up working for Saudi labor supply companies that placed them in short-term contract roles at Amazon warehouses in the kingdom.
One of these workers is Bishnu Man Sherstha, a Nepalese worker who worked for Amazon in Saudi Arabia from 2021 until early 2024, who said, “I never expected to get the recruitment fees back. I never thought about it even in my dreams.”
He added that he received over $1,800, which covered the amount he paid as recruitment fees.
Confirming Violations
Amazon stated that it collaborated with a labor rights consulting firm to conduct an assessment of a worker center for foreign migrant labor issues at two Amazon facilities in Saudi Arabia, confirming multiple violations of labor standards.
In addition to recruitment fees, the violations included substandard living accommodations, wages, and delays in resolving workers’ complaints.
The company confirmed that it strengthened its internal controls related to its work with labor supply companies, explaining that it also improved communication mechanisms allowing workers to lodge complaints with Amazon management.