By Simon Nare
Trade union Solidarity has taken Amazon Web Services to task over its “discriminatory” development programme that excludes businesses with any white ownership.
The union said on Tuesday it had lodged a complaint with the US National Contact Point for the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct in Washington, DC, contending that Amazon’s 100% black-ownership requirement violates the guidelines.
The US National Contact Point, which operates under the OECD framework, deals with complaints involving alleged failures by multinational companies to comply with the OECD Guidelines.
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Solidarity chief executive Dr Dirk Hermann said the 100% black-ownership requirement went further than South African law requires and that the programme also violated United Nations conventions.
“The US government is right to put pressure on South Africa to scrap race laws that impose trade restrictions on American businesses, yet an American giant is using race-based requirements to enforce trade restrictions in South Africa. If Amazon is found guilty, Solidarity will also call on the US government to take further action,” said Hermann.
The OECD complaints process is non-judicial and does not make findings of criminal guilt. National Contact Points can assess complaints, facilitate mediation between parties and make recommendations.
Hermann said Solidarity would also inform the US government of the complaint and the alleged violation.
There are 52 governments that adhere to the OECD Guidelines, including the United States.
“The OECD sets standards for how multinational enterprises should conduct themselves, including with regard to human rights, labour relations and discrimination.
“The complaint against Amazon Web Services South Africa (AWS) was submitted to the US National Contact Point for the OECD in Washington, DC, as Amazon’s headquarters are based in the US,” he said.
Hermann said the AWS programme at the centre of the complaint was described as a development and acceleration programme for businesses looking to grow their AWS operations and develop as partners in the Amazon Partner Network.
AWS’s published eligibility criteria for its Equity Equivalent Investment Programme state that applicants must be 100% black-owned, have a valid Level 1 B-BBEE certificate or affidavit and fall within specified small-business turnover thresholds.
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Solidarity said businesses with even partial white ownership were therefore automatically excluded from the programme, regardless of their size, needs, potential or the composition of their workforce.
Hermann said this was particularly “absurd” given that Amazon presents the programme as promoting inclusivity, arguing that the requirement prevented white and black entrepreneurs from jointly owning businesses that qualify for the programme.
He disputed AWS’s reliance on South Africa’s black economic empowerment framework, arguing that the 100% requirement created what Solidarity described as an impenetrable racial barrier.
Solidarity said South African law did not require businesses participating in such programmes to be 100% black-owned and argued that the AWS requirement went beyond what was required under the country’s B-BBEE framework.
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The union also argues that the programme does not meet South Africa’s constitutional requirements for race-based remedial measures.
“Solidarity is therefore asking the US National Contact Point to facilitate mediation between the parties. If no agreement can be reached, the OECD is asked to recommend that Amazon remove the race-based requirements for participation in the programme,” Hermann said.
AWS has previously defended the Equity Equivalent Investment Programme as a mechanism through which it meets requirements under South Africa’s Broad-Based Black Economic Empowerment framework.
The tech giant has also said that the programme does not prevent other businesses from working with AWS and that businesses which do not qualify for the development programme can still engage with the company through its other operations and partner network.
