SAUDI ARABIA: MIGRANT WORKERS AT CARREFOUR SITES EXPLOITED, CHEATED AND FORCED TO LIVE IN SQUALOR

In the new report, “I would fear going to work”: Labour exploitation at Carrefour sites in Saudi Arabia, the human rights organization also documents how workers were made to live in squalid accommodation and feared being ‘fired’ if they complained or resisted working additional overtime

Migrant workers contracted to sites in Saudi Arabia franchised by French retail giant Carrefour were deceived by recruitment agents, made to work excessive hours, denied days off and cheated of their earnings, said Amnesty International.

In the new report, “I would fear going to work”: Labour exploitation at Carrefour sites in Saudi Arabia, the human rights organization also documents how workers were made to live in squalid accommodation and feared being ‘fired’ if they complained or resisted working additional overtime.

The abuses suffered by some of the contracted workers likely amount to forced labour including human trafficking for the purpose of labour exploitation, yet neither Carrefour Group nor its partner Majid Al Futtaim, which operates the franchise in Saudi Arabia, took adequate action to stop them or offer redress to workers.

“Workers thought they were opening the door to a better life but instead many were subjected to appalling exploitation and abuse. Carrefour’s inaction meant it failed to prevent this suffering, which for some contracted workers likely amounts to forced labour including human trafficking,” said Marta Schaaf, Amnesty International’s Director of Climate, Economic and Social Justice, and Corporate Accountability Programme.

“Carrefour has a clear responsibility under international human rights standards to ensure abuses do not occur throughout its operations, including its franchises. Now Carrefour and Majid Al Futtaim should act to remedy the abuses – including urgently compensating those affected – and ensure that workers in their operations are never harmed again.”

Carrefour has a clear responsibility under international human rights standards to ensure abuses do not occur throughout its operations, including its franchises.

Marta Schaaf, Amnesty International

Amnesty International’s report comes just two weeks before the International Labour Organization (ILO) Governing Body will consider a landmark complaint against the Saudi Arabian government regarding wage theft, forced labour and the prohibition of trade unions. The complaint was submitted by global trade union Building and Wood Workers’ International (BWI) in June 2024, supported by Amnesty International and other organisations.

Deceived, overworked and underpaid

Amnesty International’s investigation follows a 2023 report published by the organization exposing abuses at Amazon facilities in Saudia Arabia, involving one of the same labour supply companies. The latest research was based on interviews and information provided by 17 men from Nepal, India and Pakistan. They all worked in various Carrefour facilities in Riyadh, Dammam and Jeddah between 2021 to 2024 and nearly all are or were employed by labour supply companies and contracted out to Majid Al Futtaim.

To secure jobs the workers paid recruitment agents in their home countries an average fee of $1,200, and often took on high-interest debt to do so, despite such charges being outlawed by Saudi legislation and prohibited by Majid Al Futtaim’s own policies.

Almost all the workers interviewed were lied to or misled by the agents, sometimes with the involvement of labour supply companies, about the nature and benefits of the jobs in Saudi Arabia or tricked into believing they were being hired directly by international companies. Many only found out they would be employed by Saudi Arabian supply companies – which are notorious amongst workers – after paying the fees, by which time most could not recoup the money paid and therefore felt unable to backout.

In Saudi Arabia the men were met with arduous work and repeated underpayment. They described regularly walking more than 20km per day and working 60-hour weeks, sometimes up to 16 hours a day, especially when business was booming in periods such as ‘salary weeks’ and the month of Ramadan. In breach of both Saudi Arabia’s laws and Majid Al Futtaim’s policies, workers said managers at the facilities – which included supermarkets and warehouses, or ‘dark stores’ – would sometimes cancel their weekly rest days. 

Anand*, a former warehouse ‘picker’, told Amnesty: “Inside Carrefour stores, workers are not treated as humans. They treat workers as animals. They keep on saying, ‘yallah, yallah’ [‘let’s go’, ‘let’s go’]. They cling to our T-shirt to make us work fast.”

Many of the workers said the hardest part of the experience was not being paid properly for these overtime hours as required by national law and company policies. As a result, they were often denied dozens of additional hours’ pay a month, amounting to hundreds of dollars each year.

Accommodation provided by the labour supply companies was often dirty and overcrowded, contrary to Majid Al Futtaim’s requirements. Workers said they slept six or eight to a room, with one describing it as “like a cowshed”.

Contracted workers described a culture of fear. Workers who raised complaints directly with managers at the Carrefour facilities said they were ignored or told to take up the matter with the labour supply companies instead. Some workers who did speak out experienced retaliation from the supply companies or Carrefour facility managers, intimidating others into silence. Although Majid Al Futtaim told Amnesty International that it prohibits retaliation against anyone sharing a “good-faith concern”, workers reported that if they resisted working extra hours, they would be threatened with not being paid or facing dismissal.

Baburam* told Amnesty International:

“It was tough to work that long. But the manager wouldn’t let me go… He would say, ‘You must complete the order process, then you can go.’ What could I do? If we didn’t work 15 hours, he would also say, ‘I will terminate you. I won’t pay for your overtime’.”

Being ‘terminated’ from these facilities could result in workers being made ‘jobless’ until their labour supply company found them a new role – often weeks or months later. During this time, the worker would be left with no income from the supply company or support from the Saudi Arabian state.

Gopal* said: “Had I complained, I could have lost my job. That’s why I couldn’t complain. Once, 14 or 15 workers complained about it, and they were expelled from the job. When a worker loses his job, the supply company makes him jobless for four to five months.”

Had I complained, I could have lost my job. That’s why I couldn’t complain.

Gopal*, contracted worker

High risks of forced labour        

The experiences of workers interviewed by Amnesty International indicates that the two key elements of forced labour – involuntary work and threat of penalty – are present in Carrefour Group’s franchise operations in Saudi Arabia.

While Carrefour Group’s policies make clear it is aware of its responsibilities and has committed to upholding international human rights standards, including throughout its franchises and suppliers, Amnesty International’s research demonstrates that its due diligence processes are wholly inadequate. This is despite the fact that in Saudi Arabia, the severity and frequency of labour abuses – including forced labour – are acute and well-documented.

“It is well known that despite some reforms, migrant workers in Saudi Arabia continue to be subjected to the country’s Kafala sponsorship system, have no guaranteed minimum wage and are prohibited from joining or forming trade unions. Carrefour has no excuse for failing to protect its workers from exploitation, and no justification to avoid paying them the compensation they deserve,” said Marta Schaaf.

“The high risk of exploitation in Saudi Arabia highlights an undeniable need for fundamental reform of the country’s labour system. The ILO Governing Body should urgently open an investigation into violations of workers’ rights and ensure Saudi Arabia brings its labour laws and practices fully in line with international standards.”

In response to Amnesty International’s findings, Carrefour Group and Majid Al Futtaim said they have launched an internal investigation into the treatment of migrant workers in their Saudi Arabia facilities, while Carrefour Group has also instructed a third-party audit of its franchise partner’s operations. Majid Al Futtaim detailed steps it has taken to remediate abuses since Amnesty International first alerted it, including moving some workers to new housing; reviewing policies on overtime and the ban on recruitment fees; increasing screening of new suppliers and improving access to its employee hotline.

“Serious questions remain, however, as to why neither company identified or addressed long-standing abuses prior to being alerted by Amnesty International in mid-2024, including after we published our investigation into one of their suppliers last year.Neither company has yet committed to reimburse recruitment fees or compensate workers for harms suffered,” said Marta Schaaf.

*Names of workers have been changed.

Background information

• Carrefour Group was a sponsor of the 2024 Paris Olympics and has an annual turnover of more than €94 billion.
• Carrefour facilities and stores in Saudi Arabia are operated by UAE-based Majid Al Futtaim via a franchise agreement with Carrefour Group, headquartered in France.
• The ILO Governing Body is due to discuss BWI’s complaint on 7 November.
• Following Amnesty International’s Amazon investigation, Amazon eventually paid over $1.9 million to reimburse recruitment fees to over 700 workers.