2024-10-21 09:48:00
Migrants employed at centers in Saudi Arabia operated under franchises by French retail giant Carrefour have been deceived by recruitment agencies, forced to work excessive hours, deprived of rest days and defrauded of their income.; Amnesty International says so.
In its new report “I would be afraid to go to work”: Labor exploitation at Carrefour sites in Saudi Arabia, the human rights organization also documents how workers were forced to live in precarious housing and their fear of being “fired ” if they complained or objected to working overtime.
The abuses suffered by some of the inductees likely constitute forced labor, including human trafficking for the purpose of labor exploitation; However, neither the Carrefour Group nor its partner, the Majid Al Futtaim Group, responsible for franchising in Saudi Arabia, have taken adequate measures to put an end to it, nor have they offered compensation to the affected staff..
“These people believed they were opening the door to a better life but instead many were subjected to appalling exploitation and abuse. By not acting, Carrefour has not prevented this suffering, which, in some cases, likely constitutes forced labor, including human trafficking,” said Marta Schaaf, Program Director on Climate, Economic and Social Justice and Corporate Responsibility by Amnesty International.
“Carrefour has, under international human rights standards, an unequivocal obligation to ensure that abuses do not occur in any of its operations, including its franchises. Carrefour and Majid Al Futtaim should act now to remedy the abuses, which means compensating those affected and ensuring their operational staff are not harmed again.”
This Amnesty International report is published just two weeks before the governing body of the International Labor Organization (ILO) considers a historic claim against the Saudi government in relation to wage theft, forced labor and the ban on forming trade unions. The claim was made in June 2024 by the International Construction and Woodworkers (BWI), an international trade union, with the support of Amnesty International and other organisations.
Cheated, overcharged and underpaid
Amnesty International’s investigation follows a report published by the organization in 2023 alleging abuses at Amazon centers in Saudi Arabia, in which one of the same labor supply companies was involved. The latest research is based on interviews and information provided by 17 men from Nepal, India and Pakistan. All worked at Carrefour facilities in Riyadh, Dammam and Jeddah between 2021 and 2024, and almost all had been hired by labor supply companies and sent to Majid Al Futtaim.
To get the work, workers paid an average fee of $1,200 to contractors in their home country – often taking on high-interest debt – even though Saudi law and Majid Al Futtaim’s own policies prohibit charging such fees.
The contractors lied or deceived virtually all of the workers interviewed – sometimes with the involvement of labor supply companies – about the nature and benefits of their positions in Saudi Arabia, or tricked them into believing they were hired directly by international companies. Many found they were working for Saudi labor suppliers – infamous among workers – after paying taxes, and since most could no longer get their money back, they could not go back.
In Saudi Arabia, men faced arduous work and repeated underpayment. They said they had to walk more than 20 kilometers a day and work 60 hours a week, sometimes up to 16 hours a day, especially during periods of increased business, such as sales and the month of Ramadan. In violation of Saudi laws and Majid Al Futtaim’s policies, workers said managers at the facilities – which included supermarkets and warehouses – sometimes canceled their weekly days off.
Anand*, who worked as a warehouse worker, told Amnesty: “In Carrefour warehouses they don’t treat the staff like human beings. They treat us like animals. They always say: ‘yalah, yalah’ [vamos, vamos]. “They stay with us to make us work faster.”
Many said the most difficult part of the experience was not properly charging overtime as required by national legislation and company policies. They were routinely denied monthly pay for dozens of hours of overtime, amounting to hundreds of dollars a year.
Furthermore, accommodation provided by labor supply companies was often dirty and overcrowded, in violation of Majid Al Futtaim requirements. The workers said they slept between six and eight in a room, which one described as “a stable”.
Hired staff described a fear-based culture. Those who made complaints directly to Carrefour factory managers were ignored or forced to report them to labor supply companies. Some workers who spoke out publicly faced retaliation from supplier companies or Carrefour factory managers, leading others to remain silent. Although Majid Al Futtaim told Amnesty International that his group prohibits retaliation against anyone who expresses “good faith concerns”, workers said that if they objected to overtime, they were threatened with not receiving pay or being fired. .
Baburam* told Amnesty International:
“It was difficult to work so many hours. But the director didn’t let me go. […] It said, “When you finish processing orders you can leave.” What could I do? If we didn’t work 15 hours, he would also say, ‘I’ll fire you. I’m not paying you overtime.’”
Being laid off from these facilities could mean that workers were “out of work” until the labor provider assigned them a new position, often weeks or months later. At the time, the worker received no remuneration from the supplier or support from the Saudi state.
Gopal* said: “If I had complained, I would have lost my job. That’s why I couldn’t complain. Once, 14 or 15 workers complained and were fired. When a worker loses his job, the provider does not reinstate him for four or five months.”
High risk of forced labor
The experience of workers interviewed by Amnesty International indicates that the two key elements of forced labor – involuntary labor and the threat of sanctions – are present in Carrefour Group’s franchising operations in Saudi Arabia.
Although Carrefour Group’s policies clearly highlight that it knows its responsibilities and is committed to respecting international human rights standards, including across all its franchises and suppliers, Amnesty International’s investigation shows that its due diligence measures are totally insufficient. And this is despite the fact that in Saudi Arabia the severity and frequency of labor abuses, including forced labor, are very high and well documented.
“It is known that, despite some reforms, migrants working in Saudi Arabia continue to be subject to the kafala sponsorship system, do not have a guaranteed minimum wage and cannot join or form trade unions. Carrefour has no justification for failing to protect its workers from exploitation and avoid paying them the compensation they deserve,” said Marta Schaaf.
“The high risk of exploitation in Saudi Arabia highlights the undeniable need to undertake a fundamental reform of the country’s labor system. “The ILO governing body must urgently open an investigation into violations of workers’ human rights and ensure that Saudi Arabia brings its labor laws and practices into full compliance with international standards.”
In response to Amnesty International’s findingsCarrefour Group and Majid Al Futtaim Group said they had opened an internal investigation into the treatment received by migrants working in Saudi facilities, and Carrefour Group also commissioned a third-party audit of its franchise partner’s operations. Majid Al Futtaim detailed measures taken to remedy abuses since Amnesty International raised the alarm, including moving some workers to new accommodation, overhauling overtime policies and banning hiring compensation, a better selection of new suppliers and better access to hotline staff.
“However, significant questions remain about why neither company acknowledged or addressed the ongoing abuses until Amnesty International raised the alarm about it in mid-2024, even when we published the investigation into one of their suppliers of manpower in 2023. The company has not yet committed to returning hiring benefits or compensating staff for damages suffered,” said Marta Schaaf.
*The names of the workers are fictitious.
Learn more
- The Carrefour group was a sponsor of the Paris 2024 Olympic Games and generates an annual turnover of over 94 billion euros.
- Carrefour centers and warehouses in Saudi Arabia are operated by the United Arab Emirates-based Majid Al Futtaim Group through a franchising agreement with the France-based Carrefour Group.
- The ILO governing body will meet on 7 November to discuss the issue complaint presented by ICM (International Building and Woodworkers).
- Following Amnesty International’s investigation into Amazon, Amazon paid more than $1.9 million in severance pay to more than 700 workers.
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