Amazon Vows to Fight French Court Ban on Non-Essential Sales
Amazon Told to Sell Only Food, Health Items in France
(Bloomberg) --
Amazon.com Inc. was handed a French ban on sales of non-essential items after losing the first round of a court fight with labor unions who said the company wasn’t doing enough to protect staff from the Covid-19 pandemic.
Amazon said in a statement it’s appealing the ruling, a move that suspends the court’s decision.
The world’s biggest online retailer was initially given 24 hours to comply with the ruling by the court in Nanterre, close to Paris, or risk symbolic fines of 1 million euros ($1.1 million) for each day’s delay.
“We disagree with today’s decision by the Nanterre court and are currently assessing its implications for our French logistics sites,” Amazon said. “We will also continue to work with all stakeholders and provide the necessary clarifications as we have done since the beginning of this unprecedented crisis.”
Despite the appeal, the ruling is a signal that French authorities are paying close attention to workers’ security. Unions in the nation echoed concerns in Spain and the U.S. where employees demanded facilities be brought in line with stricter health security standards.
Amazon “evidently failed to comply with obligations to protect the health of employees,” judges said in their Tuesday ruling. The court also said the retail platform should carry out a more thorough evaluation of the coronavirus risks in its warehouses.
In France, where several workers have been tested positive for Covid-19, pressure also came from the government. Labor minister Muriel Penicaud demanded late last month an improvement to the working environment for the firm’s employees, saying that “protection conditions are insufficient.”
The U.S. giant has been one of the standout performers as the pandemic forces store closures, amplifying e-commerce demand. Earlier this week, Amazon said it would hire an additional 75,000 workers in the U.S. to meet the spike in demand. The company already filled 100,000 previously announced temporary and full-time positions.
A request for an urgent ruling was lodged by a labor union last week asking to ban Amazon from continuing to employ staff on its six French sites or, alternatively, reduce the company’s activity to essential goods. The Nanterre court ruling said Amazon would be allowed to return to a “normal” activity once its has properly evaluated the risks linked to Covid-19 with staff representatives and put in place appropriate safety measures.
©2020 Bloomberg L.P.