Amazon Updates Supply Chain Standards, Calls for Protection of Dignity of Workers

Amazon has updated its Supply Chain Standards according to which all products sold in the Amazon Stores or products or services provided to Amazon must be manufactured, produced, or provided in accordance with the Standards and all applicable laws. 

Long Story, Cut Short
  • Suppliers would be required to conform to the company's Supply Chain Standards, even when those Standards exceed the requirements of applicable law.
  • Suppliers would be required to hold their own suppliers, subcontractors, recruitment agents, and labour agents to applicable laws and these Standards, and to work with them to adopt and raise awareness of these Standards.
The Supply Chain Standards detail the requirements and expectations for Amazon's suppliers, their supply chains, and selling partners who list products in Amazon stores.
Setting Own Standards The Supply Chain Standards detail the requirements and expectations for Amazon's suppliers, their supply chains, and selling partners who list products in Amazon stores. Daniel Holland / Unsplash

Amazon has revamped its Supply Chain Standards for all selling partners and suppliers. Products sold in Amazon stores must comply with these standards and be produced in a way that respects human rights and the environment and protects the fundamental dignity of workers.

  • The Standards, which were published on 30 December 2022, will come into effect from 19 January this year.

The updates include additional requirements, expectations, and clarifications, such as:

  • Additional requirements to protect workers from harmful recruitment and engagement practices, which include providing workers with clear, understandable documentation of the employment terms and conditions before the start of their employment.
  • Further clarification that suppliers must have effective grievance mechanisms that workers can use to raise concerns without retaliation.
  • Mandatory remediation if any cases of child labour are identified.
  • Further clarification that suppliers must provide workers with a safe and healthy work environment that avoids harm to workers' health.
  • The prohibition of land-grabbing and any illegal use of natural resources.
  • Clearer specifications that suppliers must comply with applicable privacy and information security laws and regulations.

Some Highlights:

  • Upon request, suppliers would be required to disclose indirect hiring practices and any of their own suppliers, contractors, subcontractors, recruitment agents, or labour agents connected to the provision of goods or services to Amazon.
  • Suppliers would be required to carefully manage student worker programmes through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations.
  • Suppliers would be required to analyse and monitor the practices of recruitment agencies and labour brokers and employ agencies that act ethically and in the best interests of workers when contracting labour.
  • Suppliers would be required to pay their workers, including contract workers and those paid by piece rate, in a timely manner and provide compensation (including minimum wages and allowances, overtime pay, benefits, and paid leave) in a manner that satisfies or exceeds applicable laws.
 
 
  • Dated posted: 5 January 2023
  • Last modified: 5 January 2023