AMAZON.COM, INC. | Workplace Health and Safety Audit at AMAZON.COM, INC.

Status
35.43% votes in favour
AGM date
Previous AGM date
Proposal number
21
Resolution details
Company ticker
AMZN
Lead filer
Tulipshare
Resolution ask
Conduct due diligence, audit or risk/impact assessment
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that the Board of Directors commission an independent audit and report of the working conditions and treatment that Amazon warehouse workers face, including the impact of its policies, management, performance metrics, and targets. This audit and report should be prepared at reasonable cost and omit proprietary information.
Supporting statement
Whereas: Investigative reports suggest a “mounting injury crisis at Amazon warehouses,” with Amazon employees getting injured more frequently and severely than elsewhere in the industry.1 In 2020, Amazon’s self-reported injury rate was more than double the rate of Walmart warehouse workers and Amazon’s serious injury rate was nearly 80 percent higher than the wider warehouse industry.2 CEO Jassy’s claim that Amazon’s injury rates are “about average” relative to industry peers is misleading since Amazon is included in the warehouse industry average, driving that figure up.3 Amazon’s injury rate rose 20 percent from 2020 to 2021, and while Amazon employed 33 percent of all U.S. warehouse workers, Amazon was responsible for 49 percent of all injuries.4 Thus Amazon’s own reporting downplays the Company’s significant problems, which underscores the need for an independent report.
In May 2021, the Division of Occupational Safety and Health of the State of Washington Department of Labor and Industries (the “Division”) found that Amazon “did not provide employees with a workplace free from recognized hazards that are causing or likely to cause serious injury.”5 The Division reported employees were required to perform manual tasks which caused, and are likely to continue to cause, musculoskeletal disorders. The Division found that Amazon pressures its workers to maintain a very high pace of work without adequate recovery time to reduce injury risks. Further, the Division found “a direct connection between Amazon’s employee monitoring and discipline systems and workplace [musculoskeletal disorders].”
In 2021 and 2022, the Division issued four safety citations regarding Amazon’s dangerous workplaces, including a citation for 10 separate violations classified as “Willful,” the most serious finding that the Division can issue; only 0.4 percent of citations in the Division’s 50-year history have been classified as willful.6 New laws in California7 and New York target Amazon’s use of productivity quotas that can prevent workers from complying with safety guidelines or to recover from strenuous activity leaving them at high risk of injury and illness.8 Indeed, warehouse workers acknowledge Amazon instructs workers on safety, but they had to break safety rules to keep up with their mandated quotas and pace of work out of fear of losing their jobs.9
In response to warehouse workers’ organization efforts and unionization votes, Jeff Bezos admitted Amazon needs “to do a better job” for its employees.10 Shareholders agree, which is why we are calling for an independent audit and report of the working conditions and treatment that Amazon warehouse workers face.
1 https://www.seattletimes.com/business/amazons-dupont-washington-warehouse-has-highest-injury-rates-of-any- fulfillment-center-in-the-u-s-report-shows/
2 https://www.forbes.com/sites/niallmccarthy/2021/06/08/amazon-warehouse-injuries-significantly-higher-than- competitors-infographic/?sh=45fc34436854
3 https://www.businessinsider.com/amazon-jassy-injury-claims-shareolder-letter-2022-4
4 https://thesoc.org/wp-content/uploads/2022/04/The-Injury-Machine_How-Amazons-Production-System-Hurts- Workers.pdf
5 https://s3.documentcloud.org/documents/20787752/amazon-dupont-citation-and-notice-may-2021.pdf
6 https://thesoc.org/wp-content/uploads/2022/04/The-Injury-Machine_How-Amazons-Production-System-Hurts- Workers.pdf
7 https://www.huffpost.com/entry/california-law-ab-701-targets-amazon-warehouse-production- quotas_n_614c5a0fe4b06beda46bc490
8 https://www.cnbc.com/2022/06/03/new-york-passes-bill-targeting-amazon-warehouse-productivity-quotas.html
9 https://www.theatlantic.com/technology/archive/2019/11/amazon-warehouse-reports-show-worker- injuries/602530/
10 https://www.aboutamazon.com/news/company-news/2020-letter-to- shareholders?utm_source=social&utm_medium=tw&utm_term=amznnews&utm_content=2020shareholderletter&li nkId=116261313

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
EFG Asset Management For A vote FOR this proposal is warranted. Shareholders would benefit from increased disclosure through third-party
auditing on warehouse working conditions.
Kutxabank Gestion SGIIC SAU. For
Anima Sgr For As the company has recently been charged with multiple workplace safety violations. Additionally, negative media attention stemming from these violations exposes the company to severe reputational risk. Shareholders would benefit from a third-party review of the company’s working conditions within its facilities.
VidaCaixa For
Rothschild & co Asset Management For

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