UK activist retail investors are seeking to have a workers’ rights proposal included on the ballot of Amazon.com Inc’s (NASDAQ:AMZN) next annual general meeting under new guidance introduced by the US financial regulator.
The proposal, which has been submitted by activist investing platform Tulipshare, requests that the ecommerce giant commission an independent audit of the working conditions and treatment of its warehouse workers.
But Amazon believes workers’ rights are related to its ordinary business operations and has therefore made a request to the Securities and Exchange Commission that the proposal be excluded from the AGM.
However, under the SEC’s new guidance, which came into effect in November last year, shareholder proposals raising significant social policy issues can no longer be excluded under the "ordinary business exception", Tulipshare said in a statement.
It said the unsafe working conditions faced by Amazon’s warehouse workers qualify as “a significant social policy that transcends the ordinary business of the company”.
Tulipshare cited a recent report published by Strategic Organizing Centre which indicated that Amazon warehouse employees suffer serious injuries at a rate which is 80% higher than those who work at non-Amazon warehouses.
Antoine Argouges, chief executive and founder of Tulipshare, said there is widespread demand for Amazon to improve the treatment of its workers.
“In 2020, over 400 legislators from 34 countries signed a letter addressed to [Amazon executive chairman] Jeff Bezos demanding that Amazon better protect its workers. Despite this, there were no proposals relating to workers’ conditions included at Amazon’s 2021 AGM,” Argouges said.
“In response, thousands of retail investors backed our campaign to ensure this issue is discussed in 2022. We are confident Amazon will listen to shareholders this year and work collaboratively with us to ensure the safety of all workers.”