Carrefour’s Saudi Franchise Exposed: Migrant Workers Trapped in Forced Labor Under the Kafala System

A recent report from Amnesty has shed light on the harsh realities faced by migrant workers employed at Carrefour franchise sites in Saudi Arabia, managed by Majid Al Futtaim (MAF). The findings, based on interviews with workers from Nepal, India, and Pakistan, reveal a disturbing pattern of exploitation, including underpayment, excessive working hours, and degrading living conditions. Despite Saudi Arabia’s claims of modernizing its labor laws, the treatment of these workers highlights the persistent abuse enabled by the kingdom’s notorious kafala system.

Exploitation Under the Kafala System: A Breeding Ground for Forced Labor
The exploitation of migrant workers in Saudi Arabia is not a new issue. However, the scale of abuses documented in the Amnesty report raises serious concerns about the commitment of multinational corporations like Carrefour and their partners to protecting basic human rights. Workers employed through labor supply companies in Carrefour’s Saudi franchise reported being forced to work up to 60 hours a week, often without proper compensation for overtime, and were subjected to intimidation and threats of dismissal if they refused to comply with excessive demands. These conditions are a violation of Saudi labor law, yet they persist in an environment where enforcement is weak and workers have little recourse.

The reliance on the kafala sponsorship system exacerbates these abuses, as migrant workers are tied to their employers, making it nearly impossible for them to leave abusive conditions without risking deportation or unemployment. Many of these workers took on significant debt, paying exorbitant recruitment fees to secure jobs in Saudi Arabia, only to find themselves trapped in exploitative work environments. This debt bondage, combined with threats of retaliation, creates conditions that closely resemble forced labor.

Carrefour and Majid Al Futtaim: Turning a Blind Eye?
Despite the significant revenue generated by Carrefour’s operations in Saudi Arabia, the company has thus far failed to take meaningful action to address the systematic abuse of workers within its franchise. Carrefour’s recent statement, claiming that it has launched an internal investigation and engaged third-party auditors, rings hollow without concrete steps toward accountability and remediation. While Majid Al Futtaim has promised to review housing conditions and improve oversight of its suppliers, these promises are long overdue, and the lack of prior intervention raises serious questions about the company’s commitment to human rights.

It is crucial to note that this is not an isolated case. Similar abuses have been reported in other sectors across Saudi Arabia, where migrant workers remain vulnerable to exploitation despite supposed labor reforms. The fact that Carrefour continues to profit from these conditions, without adequately addressing the root causes of the abuse, points to a failure of corporate responsibility.

Urgent Need for Accountability and Reform
Together for Justice strongly condemns the exploitation of migrant workers at Carrefour sites in Saudi Arabia. We call on Carrefour and Majid Al Futtaim to take immediate and transparent action to compensate the workers affected by these abuses and ensure that similar violations do not continue. This must include the elimination of recruitment fees, the enforcement of fair working hours, and the provision of safe and adequate housing.

Furthermore, we urge the Saudi authorities to address the systemic issues that allow these abuses to persist. While the government has introduced some labor reforms, the reality on the ground shows that enforcement is severely lacking. Migrant workers continue to face wage theft, dangerous working conditions, and the constant threat of being penalized for speaking out.

A Call to the International Community
As global attention turns to Saudi Arabia’s growing economic partnerships, it is imperative that the international community holds corporations like Carrefour accountable for the treatment of workers in their supply chains. Multinational companies must not be allowed to hide behind franchise agreements or local labor practices to justify the exploitation of vulnerable workers. Investors, consumers, and governments alike must demand that Carrefour, Majid Al Futtaim, and other companies operating in Saudi Arabia comply with international labor standards and take immediate steps to rectify the abuses taking place under their watch.