Amazon’s rapid expansion in Mexico, fueled by a reliance on subcontracted warehouse workers, has drawn scrutiny regarding its labor practices. Former employees allege mistreatment, unfair dismissals, and excessive overtime, raising questions about worker rights and the role of staffing agencies.
altAmazon Fulfillment Center in Mexico City (September 12, 2017)
The Shadow Workforce: Subcontracting and Allegations of Mistreatment
Fifteen former Amazon warehouse workers in Mexico shared accounts of alleged mistreatment and unfair dismissal after being recruited through labor agencies. These accounts detail mandatory overtime exceeding legal limits, dismissals without severance pay, forced resignations, and layoffs following COVID-19 illnesses.
While Amazon maintains compliance with labor laws and prioritizes employee well-being, legal experts contend that several practices described by workers violate Mexican labor law. These include excessive forced overtime and the use of contractors for non-specialized work.
altAmazon Warehouse Opening Near Mexico City (July 30, 2019)
The Promise of a “Blue Badge”: A Reality Check
Workers reported being lured by the prospect of a coveted “blue badge,” signifying full-time Amazon employment with benefits. However, few achieved this status. The majority remained trapped in a cycle of precarious employment with staffing agencies, enduring harsh conditions and long hours with the hope of eventual direct employment.
altInside an Amazon Warehouse near Mexico City (July 30, 2019)
Mandatory Overtime and the Toll on Workers
Workers described regular 60-hour workweeks with mandatory overtime, often exceeding legal limits. Failure to comply resulted in lost bonuses and allowances. WhatsApp messages from Amazon HR confirmed the mandatory nature of overtime and the penalties for non-compliance. Legal experts assert that these practices likely violate Mexican labor laws governing overtime.
altAmazon Packages at a Mexico City Warehouse Opening (July 30, 2019)
COVID-19, Layoffs, and Lack of Severance Pay
Several workers reported being laid off after contracting COVID-19 or soon after returning to work. Additionally, numerous workers described mass layoffs and a lack of severance pay, raising concerns about job security and worker protections.
altFormer Amazon worker Nayeli Contreras in Mexico State (February 3, 2021)
Mexico’s Subcontracting Law and the Future of Amazon’s Labor Model
Mexico’s new subcontracting law, which largely prohibits the practice, poses significant challenges to Amazon’s current labor model. The law aims to improve labor rights and may force companies like Amazon to hire more workers directly. The long-term impact of this legislation on Amazon’s operations in Mexico remains to be seen.
altWorker Packing Boxes at a Mexico City Warehouse (July 30, 2019)
altEmployee Searching for Items in Amazon Warehouse (July 30, 2019)
While Amazon has acknowledged the need to improve its treatment of employees globally, the experiences of these former workers in Mexico highlight ongoing concerns about labor practices and the challenges of balancing rapid growth with worker rights. The implementation of Mexico’s new subcontracting law and Amazon’s response will be crucial in shaping the future of work for thousands of employees in the country.
