Amnesty International accused the Saudi Arabian franchise of Carrefour, the French supermarket giant, of exploiting migrant workers in its stores. The report paints a disturbing picture of migrant workers who were lured into employment with false promises and ultimately subjected to inhumane treatment, including excessive working hours, unsanitary living conditions, and withheld wages. This revelation underscores the often-hidden human cost behind the operations of global retail giants and raises critical questions about corporate accountability and the responsibilities of multinational corporations toward workers across their entire supply chains.
The Amnesty Report
Amnesty International’s findings were based on interviews with 17 migrant workers from India, Nepal, and Pakistan, who were recruited to work in Carrefour stores in Saudi Arabia. According to Amnesty, these workers were deceived by recruitment agents, leading them to believe that they were embarking on a journey toward a better life. However, upon arrival, they were met with grueling working conditions, long hours without proper rest, and a general lack of dignity in their employment.
The report outlines a series of violations, including the denial of days off, inadequate accommodation, and systematic underpayment. Some workers reportedly worked for weeks without a break, living in cramped and unsanitary conditions, and many were subjected to physical and emotional strain that Amnesty argued could amount to forced labor. Marta Schaaf, head of Amnesty’s corporate accountability program, criticized Carrefour for its lack of action, saying, “Carrefour’s inaction meant it failed to prevent this suffering, which for some contracted workers likely amounts to forced labor including human trafficking.”
The Response from Carrefour and Majid Al Futtaim
Carrefour’s Saudi Arabian operations are managed by Majid Al Futtaim (MAF), a Dubai-based company that oversees nearly 500 Carrefour stores across 30 countries in the Middle East, Asia, and Africa. Carrefour, which had discussions with Amnesty International earlier this year, initially responded by launching an internal investigation. The preliminary probe, however, did not substantiate most of the allegations made by Amnesty, according to Carrefour’s statement to AFP. While the company acknowledged the existence of other issues, such as problems related to housing, training, and work-hour accounting, it maintained that corrective actions had already been taken to address these concerns.
Nonetheless, Carrefour has since taken further steps by appointing an independent expert to conduct a comprehensive review of the human rights situation in its Saudi Arabian franchise. The company also emphasized that it was in the process of determining the methodology for assessing labor conditions, indicating that it may still take some time before concrete conclusions are reached.
While this response might seem like a move in the right direction, Amnesty insists that Carrefour, as the principal brand, bears responsibility for ensuring that labor abuses do not occur anywhere in its operations, including in franchised outlets. Amnesty’s report highlights the need for a more robust corporate governance framework to prevent similar issues from occurring in the future.
Saudi Arabia’s Labour Market and Migrant Workers
Saudi Arabia has long relied on migrant workers to fill key roles in sectors like construction, retail, and domestic work. According to official statistics, millions of workers from countries such as India, Pakistan, Nepal, Bangladesh, and the Philippines are employed in the kingdom, where they form a significant part of the workforce. Despite their importance to the economy, migrant workers are often vulnerable to exploitation, particularly due to the country’s kafala (sponsorship) system, which ties workers’ residency status to their employers. This system has faced widespread criticism for enabling abusive labor practices by giving employers excessive control over workers’ movements and employment terms.
In response to the increasing global pressure on labor rights, Saudi Arabia’s human resources ministry has stated that it has a “zero-tolerance” policy toward worker abuse and is actively working to address issues related to labor exploitation. In a written response to AFP, the ministry emphasized that any allegations of worker abuse or exploitation are subject to comprehensive investigation. However, the statement stopped short of addressing Amnesty International’s specific allegations against Carrefour.
Saudi Arabia has taken steps to reform the kafala system, and in March 2021, the government introduced new regulations designed to improve conditions for migrant workers, such as allowing them to switch jobs without employer consent in certain circumstances. However, the effectiveness of these reforms remains a point of contention, with human rights organizations continuing to report cases of worker abuse.
A Broader Issue: Corporate Responsibility in Global Supply Chains
The accusations against Carrefour highlight a broader issue of corporate responsibility within global supply chains, particularly in industries where operations are often outsourced or franchised. Multinational corporations like Carrefour, which operate in numerous countries through franchise agreements, face the challenge of ensuring that labor rights are upheld consistently across all their locations, even when direct control over day-to-day operations is limited.
While Carrefour’s initial internal investigation may not have confirmed Amnesty’s findings in full, the revelation of other labor-related problems in its Saudi Arabian operations suggests that deeper structural issues may be at play. Amnesty’s call for both Carrefour and MAF to remedy the situation and ensure that workers in their operations are “never harmed again” reflects a growing expectation that multinational corporations take a more proactive stance in preventing labor abuses in their global supply chains.
The concept of corporate accountability is evolving, with stakeholders increasingly demanding transparency and ethical practices at all levels of a corporation’s operations. Brands that fail to address these concerns may face reputational damage, consumer boycotts, and legal consequences. In the era of social media and instant communication, such scandals can quickly gain global attention, pressuring companies to act swiftly or face backlash from the public.
The Way Forward
The allegations against Carrefour and MAF signal the need for stronger oversight mechanisms, both within corporations and in the countries where they operate. A comprehensive external review, as Carrefour has committed to, is a step in the right direction, but it must be accompanied by concrete measures to ensure that violations do not recur. This could include regular audits of labor practices, greater transparency in recruitment processes, and stricter enforcement of labor rights at all levels of operation.
Moreover, the Saudi government must continue to strengthen its labor laws and enforcement mechanisms to protect migrant workers from exploitation. While recent reforms to the kafala system are a positive development, their effectiveness will depend on consistent implementation and the ability of workers to access justice when their rights are violated.
The Carrefour case is a reminder of the globalized nature of labor exploitation, where workers in distant corners of the world are often subject to abuse under the operations of multinational companies. As consumers, governments, and human rights organizations continue to call for accountability, corporations must rise to the challenge by ensuring that their operations respect the dignity and rights of all workers, regardless of where they are located.
Conclusion
Amnesty International’s report on the exploitation of migrant workers at Carrefour stores in Saudi Arabia has shed light on the dark realities faced by many low-wage workers in the Gulf region. While Carrefour and its franchise partner MAF have taken some steps to address the issue, much more needs to be done to ensure that these workers receive the protection and dignity they deserve. The case also underscores the broader responsibility of multinational corporations to ensure that their operations, whether direct or franchised, do not contribute to human rights abuses. As the global spotlight on labor rights intensifies, companies like Carrefour must take meaningful action to safeguard the well-being of their workers.
