Investors write to Amazon over Coventry union response concerns

CCLA Investment Management has sent the letter as part of a group of 50 investors and advisors.

Henry Saker-Clark
Wednesday 05 June 2024 08:24 EDT
Members of the GMB union on the picket line stand in front of a freight lorry outside the Amazon fulfilment centre in Coventry (Jacob King/PA)
Members of the GMB union on the picket line stand in front of a freight lorry outside the Amazon fulfilment centre in Coventry (Jacob King/PA) (PA Archive)

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Dozens of investors have written to Amazon raising concerns over the retail giant’s alleged response to trade union membership at its Coventry warehouse.

CCLA Investment Management has sent the letter as part of a group of 50 investors and advisors, including Nest and Storebrand, in defence of worker bargaining rights.

The investors have urged Amazon to prove that they are implementing their Global Human Rights Principles in the letter.

It comes after the GMB union launched legal action against Amazon in April over its long-running battle for recognition at the Coventry site.

The union accused Amazon of posting anti-union messages on message boards and claimed that workers were called into lengthy meetings where managers were critical of unions.

Amazon said it does not believe “there is any merit” in the legal action.

The group of investors said in the letter they believe Amazon’s alleged actions are “misaligned” with the company’s stated approach to human rights.

The have also asked Amazon for an explanation on its approach for respecting the rights of freedom of association and collective bargaining.

It also comes after a number of shareholders also raised similar concerns at a vote at Amazon’s annual general meeting earlier this year.

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

Peter Hugh Smith, CCLA chief executive

Peter Hugh Smith, CCLA chief executive, 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.”

An Amazon spokesman 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 legal action.”

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