Fifty institutional investors have signed a letter expressing concerns over Amazon’s alleged response to trade union membership at its Coventry fulfilment centre, and urging the online retailer to prove it is adhering to its own human rights principles around freedom of association.
Sustainable investment firm CCLA Investment Management and 50 cosignatories sent the letter stating that they believe Amazon’s alleged actions in response to workers trying to organise at Coventry are misaligned with the company’s stated approach to human rights.
They are concerned that Amazon’s conduct towards employees seeking to unionise contradicts its stated commitment to respect employees’ fundamental rights to freedom of association and collective bargaining as articulated in the UN Global Principles for Business and Human Rights, and the International Labour Organisation’s Declaration and Core Conventions.
Amazon union membership
GMB launches legal action against Amazon ‘anti-union’ tactics
The letter asks Amazon for an explanation of the company’s approach, and how its policies and procedures are implemented in practice at Coventry.
In April, GMB lodged an employment tribunal claim over union membership on behalf of five workers at the fulfilment centre. The union said Amazon has “engaged in widespread attempts to coerce staff to cancel their trade union membership” using union-busting tactics imported from the US.
GMB alleges that anti-union messages have been displayed at the facility and managers have expressed anti-union sentiment in meetings during work time. Amazon managers have displayed QR codes which generate an email to the GMB requesting union membership to be cancelled.
Earlier in April, the Central Arbitration Committee ruled that the GMB can proceed with a vote to gauge worker support for a collective bargaining unit at its Coventry warehouse.
CCLA chief executive Peter Hugh Smith said: “As an investor in Amazon, we want to do the right thing – both by our clients who expect us to be good stewards of their capital and by Amazon’s employees.
“In light of the countless media reports and allegations, and given two major ESG data providers have expressed concerns, questions from investors need to be answered.
“We want to see Amazon appoint a reputable third party to assess how they implement their human rights policies in UK fulfilment centres and to commit to rectifying any areas of non-conformance identified. The clock is ticking and it is time for Amazon to set the record straight.”
Amazon has repeatedly faced “union-busting” criticisms across the world. Last month, 20 investors filed a shareholder resolution at Amazon’s AGM asking for independent scrutiny on the degree to which Amazon is aligned with its own policies on rights to freedom of association and collective bargaining.
There have been multiple adjudications in the US finding that Amazon has violated US law. Last year, a judge with the National Labour Relations Board ruled it had illegally threatened to withhold pay increases from workers at two New York City warehouses if they voted to unionise.
German union Verdi has alleged that Amazon has been interfering in works councils by terminating contracts with union members. In February, Germany’s federal labour minister wrote to Amazon asking it to reconsider its actions and engage constructively with the councils.
And in October 2023, a regional court in Poland ruled that Amazon illegally fired a union supporter. Amazon appealed but the court upheld the decision in April and in a final judgment ordered it to rehire the union supporter.
Kiran Aziz, head of responsible investments at KLP, said: “It is of great concern to see that despite the ongoing shareholder efforts to engage Amazon on the topic over the past years and most recently in relation to the AGM 2024, the company continues to face multiple allegations across the world regarding its commitment to respect worker’s freedom of association and collective bargaining rights, and does not show sufficient responsiveness to investor concerns.”
Asked on the BBC’s Today programme this morning whether CCLA could withdraw investment from Amazon, Hugh Smith responded: “That is a possibility. That’s not on the cards today. Obviously, over time, if we don’t see change – but change, as we all know, takes time – that is a potential consequence, absolutely.”
An Amazon spokesperson said: “We agree that everyone has the right to choose to join a union, and that everyone also has the right to leave a union if they choose.
“Our employees told us how difficult it was to cancel their union membership so we provided information to help, through signs that always state that it’s an employee’s personal choice.
“Additionally, it is made clear to employees that attendance at meetings is entirely their choice too. We do not believe there is any merit in the [GMB] legal action.”
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