13 May 2024
CCLA has joined global institutional investors in filing a shareholder resolution at Amazon’s 2024 AGM. This calls for Amazon to appoint a reputable third-party to produce a gap analysis of their practice versus their labour standards policy.
We are concerned that Amazon’s reported conduct towards employees seeking to unionise contradicts its stated commitment to respect its employees’ fundamental rights to freedom of association and collective bargaining as articulated in the UN Global Principles for Business and Human Rights (UNGPs) and the ILO Declaration and Core Conventions.
Despite Amazon’s public commitment to respect international labour rights standards, Amazon workers have accused the company of conduct that violates both international standards and national laws protecting freedom of association and collective bargaining. Over the past year, these allegations have been made by direct and contracted employees in the US, the UK, Germany and Poland.
- Since January 2023, there have been multiple adjudications and determinations by regulators in the US finding that Amazon has violated US law (and thus, by the company’s own argument, its own human rights policy).1,2,3
- Over the past two years, workers at Amazon’s Coventry warehouse, in the UK, have sought to organise with the union GMB. After further organising, the GMB again petitioned for recognition in March 2024, while reporting extensive anti-union activity by Amazon.4,5,6,7,8
- The union Ver.di in Germany has alleged that Amazon has been interfering in the works councils set up at its facilities (workers in Germany have the right to feed into boards via work councils) by terminating or denying contract renewals to union members active on these councils. In February 2024, Federal Labor Minister Hubertus Heil wrote to Amazon calling on the company to reconsider its actions and engage constructively with these works councils.9
- A regional court in Poland, ruled in October 2023 that Amazon illegally fired a union supporter. Amazon appealed the ruling, but the court denied the appeal in April 2024 and in a final judgement ordered Amazon to rehire the union supporter.10
What does this mean for investors?
Misalignment poses material reputational and operational risks to the company, which, if left unaddressed, may threaten long-term shareholder value.
What is our ask?
- Appoint a reputable and independent third party to assess their implementation of the policy in fulfilment centres located in the UK and to commit to rectifying any areas of non-conformance that are identified.
- To confirm that they have not undertaken the alleged anti-union activities at their Coventry fulfilment centres.
In summary
We believe an independent and credible report on the degree to which Amazon is aligned with its policies with regards to fundamental rights to freedom of association and collective bargaining as articulated in the UNGPs and the ILO Declaration and Core Conventions, would give investors clarity on the material risks which could negatively impact long-term value if left unaddressed.