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Amazon details improvements for temps in Saudi Arabia

23 February 2024

Amazon.com said it’s taken steps to improve the treatment of contingent workers in Saudi Arabia after concerns have been raised and an audit found a staffing firm violated Amazon’s supply chain standards.

The company said in a statement on 22 February that it found the violations at temporary staffing firm Abdullah Fahad Al-Mutairi, or AFMCO, through an independent audit. They included violations of supply chain standards such as worker-paid recruitment fees to obtain employment, substandard living accommodations, contract and wage irregularities and delays in the resolution of worker complaints.

Amazon said it has since worked with the firm and others to bring them into compliance. Further audits have since shown that AFMCO has remediated the most serious concerns. Those efforts included upgrades in living accommodations, providing lockers for personal belongings, limiting the number of occupants per room, upgrading fire safety systems and ensuring living conditions meet Amazon’s standards.

Amazon also said it conducted a deeper dive into its supplier ecosystem and found other instances of temporary workers being required to pay recruitment fees and other costs. Amazon has since worked to reimburse temps, paying USD 1.9 million to more than 700 workers. Amazon said that while it requires vendors to pay back worker-paid recruitment fees, in this case, Amazon provided the reimbursement directly in order to expedite repayment.

“Amazon remains dedicated to continuously strengthening and improving protections for all contracted workers who support our business,” the company said in its statement. “We remain grateful to those who brought attention to this issue, and above all, appreciate the willingness of all the workers who participated throughout this process and shared their experiences.”

The company also said it has taken several steps to enhance controls:

  • Strengthened third-party vendor contracts to clarify expectations regarding compliance with its supply chain standards.
  • Reviewed vendors’ wage policies, including clarification that illegal wage deductions are prohibited.
  • Provided additional training to vendors in the region on how to implement its supply chain standards, including responsible recruitment practices.
  • Improved its communication mechanism that enables contracted workers to share concerns directly with Amazon’s management.