Amnesty Censures Labor Practices at Saudi Arabian Carrefour Franchise

Amnesty International’s report highlights severe labor violations at Carrefour stores and warehouses in Saudi Arabia, including excessive working hours, unpaid overtime, and allegations of forced labor involving migrant workers from Nepal, India, and Pakistan. Former employees report dehumanizing treatment and a lack of proper oversight by Carrefour and its franchisee, Majid Al Futtaim. Both companies are urged to improve their internal procedures to address these human rights abuses, which threaten their reputations and the welfare of their workers.

Amnesty International has raised serious concerns regarding labor practices in Carrefour stores and warehouses in Saudi Arabia, highlighting instances of excessive working hours, unpaid overtime, and allegations of forced labor affecting migrant workers. This investigation follows their previous report on working conditions at Amazon facilities in the kingdom.

The NGO’s recent report, released on Monday, details the challenges faced by migrant employees at various Carrefour franchised locations across Saudi Arabia. A former warehouse worker, Anand, described the harsh treatment of staff, stating that “in Carrefour stores, workers are not treated as human beings.” He emphasized the pressure to work faster, sharing that managers often resort to physical intimidation, such as grabbing workers’ shirts to push them to meet demanding targets.

In-Depth Examination

Amnesty conducted interviews with 17 workers from Nepal, India, and Pakistan employed by subcontractors such as Al-Mutairi and Basmah across locations in Riyadh, Jeddah, and Dammam. These establishments are overseen by Majid Al Futtaim (MAF), Carrefour’s longstanding franchisee since 1995.

The report accuses both Carrefour and MAF of significantly contributing to human rights violations by outsourcing labor without proper oversight, compromising the treatment of workers. Amnesty asserts that the two companies have failed to ensure their subcontractors maintain basic human rights standards.

In response, Carrefour indicated that it has engaged with MAF, requesting internal investigations into the allegations following discussions with Amnesty in mid-2024. Carrefour stated that initial investigations did not corroborate Amnesty’s findings but did highlight additional issues related to worker housing and monitoring of hours, for which corrective actions have reportedly been taken. An independent expert has been brought in to review the company’s compliance with human rights requirements, with audit modalities currently being established.

Commitment to Human Rights

Both Carrefour and MAF have made public commitments to uphold human rights across their operations. In its financial filings, Carrefour expressed its commitment to respecting human rights throughout its value chain, warning that any shortcomings could adversely affect the company’s reputation. Similarly, MAF emphasized its dedication to adhering to the highest standards of human rights and working conditions in its corporate social responsibility report.

Operating nearly 500 Carrefour stores across 30 countries, MAF reported significant financial results for 2023, with sales amounting to 34.5 billion dirhams (approximately 8.6 billion euros) and a net profit of 2.7 billion dirhams (around 674 million euros). Saudi Arabia remains a pivotal market for the company, generating substantial sales outside its home base in the UAE.

Amnesty International advocates for a critical reassessment of internal procedures relating to migrant workers, urging both companies to respond effectively and swiftly to any reports of abuse. Mathias Bolton, head of the commerce section of the international trade union federation UNI Global Union, expressed alarm over the identified violations, highlighting significant deficiencies in the oversight and enforcement of fundamental human rights standards within Carrefour’s franchised operations in Saudi Arabia.

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