Amazon Halts Activity at  French Warehouses After Court Order

(Bloomberg) --

Amazon.com Inc. said it will stop activity at its fulfillment centers in France for five days after a court order banned the sale of non-essential goods.

The world’s largest online retailer is “temporarily” suspending sales from April 16 through April 20, a spokeswoman for the company said. The court concluded the retailer isn’t doing enough to protect staff from the Covid-19 pandemic.

The $1.1 trillion company was given 24 hours on Tuesday to comply with the ruling to sell only essential items such as food and hygiene products, and to upgrade its health-security procedures. The company faces fines of 1 million euros ($1.1 million) for each day’s delay.

Amazon said the ruling left it “perplexed,” and noted it has already taken extra steps to protect employee health.

“The court gave categories that are very general and create ambiguity that would be too hard to implement,” a spokeswoman for Amazon told Bloomberg News. “This is a complex business to run.”

Amazon must shut down “because of the terms and conditions of the court order, especially because of their ambiguity and the absence of definition,” the e-commerce giant said in an internal memo that was seen by Bloomberg.

Representatives from the CFDT and CGT labor unions said the company informed employees at the six French fulfillment centers that they’ll be on a partial unemployment program with full pay.

A representative for Amazon didn’t immediately respond to a request for comment on the document or the employment details.

“The government is specifically paying attention to our citizens working during the current health emergency, and whether their employers put in place all sanitary measures -- because it is their responsibility,” government spokeswoman Sibeth Ndiaye said Wednesday after the weekly cabinet meeting. Ndiaye declined to comment on Amazon’s plans.

Pressure on the Seattle-based giant to upgrade its health security plans has increased across its fulfillment centers. In France, several workers have been tested positive for Covid-19. 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.”

“We believe it’s good news. It will give us time to negotiate more seriously and upgrade health safety measures,” said CFDT labor union representative Julien Vincent.

Amazon “evidently failed to comply with obligations to protect the health of employees,” judges said in their Tuesday ruling. The court also said the online retailer should carry out a more thorough evaluation of coronavirus risks in its warehouses.

The U.S. giant’s share price 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. The company already filled 100,000 previously announced temporary and full-time positions.

“The court’s extensive ruling on sanitary measures and on mental-health impact and Amazon’s reaction will be closely watched by other companies that make deliveries, and by labor unions,” said Lionel Vuidard, a partner at the Paris office of law firm Linklaters. “This could have a ripple effect -- it could force companies to increase their sanitary measures to avoid the same kind of troubles.”

©2020 Bloomberg L.P.