UK retail investors fight to have workers’ rights proposal included at Amazon AGM
You might have seen by now that Tulipshare submitted a shareholder proposal to Amazon this year. Here’s why Amazon is trying to exclude it, and why we remain hopeful that it will be on this year’s shareholder ballot.
What is it about?
We are fighting to end the unsafe working conditions and unfair treatment that Amazon warehouse employees have been subjected to through a workers’ rights targeted shareholder proposal. The proposal requests Amazon commission an independent audit of the working conditions and treatment that Amazon warehouse workers face.
While Amazon strives to be the “Earth’s Best Employer” and “Earth’s Safest Place to Work”, a recent report indicated that Amazon warehouse employees suffer serious injuries at a rate which is 80% higher than those who work at non-Amazon warehouses.
Why are Amazon trying to exclude it?
In response, Amazon has written to the Securities and Exchange Commission (SEC) requesting that the workers’ rights proposal be excluded from the company’s 2022 proxy statement. Amazon claims that workplace safety concerns and workers’ rights relate to the company’s “ordinary business operations”, and should therefore be excluded from the shareholder vote at the upcoming AGM.
Why our proposal could still go through
However, Tulipshare hopes to leverage recent changes to the SEC’s new guidance, which came into force on 3 November 2021, to engage with the company. These new rule interpretations state that shareholder proposals raising significant social policy issues may no longer be excluded under the “ordinary business exception”. They will argue that the unsafe working conditions faced by Amazon’s warehouse workers qualifies as a significant social policy that transcends the ordinary business of the company.
If the shareholders are successful, it would be the first time a proposal submitted on behalf of retail investors would make it onto the proxy ballot at Amazon’s AGM. This would be a major win for retail investors who want to have a greater say on how companies operate by using activist investment platforms. Tulipshare is the lead sponsor to submit a proposal on workers rights at Amazon, after Domini Investments submitted an almost identical proposal to ours.