22 April 2020

[220420.EN.BIZ] Amazon Shuts French Distribution Centres In Response to Court Ruling


AMAZON.COM is shutting down its distribution activity in France after a court ruled it had to stop all non-essential deliveries during the coronavirus pandemic, reports CNN Business.

The ruling followed the filing of a complaint by a French labor union which accused the online delivery giant of endangering the lives of workers.

Amazon said it was "perplexed" by the court ruling that ordered Amazon (AMZN) to restrict its local delivery operations to essential goods only, or face a penalty of EUR1 million (US$1.1 million) for each day it failed to comply.

Citing the high penalties imposed by the court and the "complexity inherent in our logistic activities," Amazon said it would temporarily suspend activities in their distribution centres "despite the huge investment that we have made to ensure and strengthen by additional measures the safety of our employees who remained mobilized during this crisis."

The company said it will ask employees of their distribution centres to stay at home, but "will continue to serve our customers in France through independent companies that sell on Amazon" through its global distribution network.

Source : HKSG.

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