Union Solidarity said it would investigate reports that Amazon Web Services' business development programme applied race-based barriers.
Image for illustrative purposes. Picture: iStock
Amazon Web Services (AWS) insists that the company’s ownership requirements for its business development programme are not exclusionary.
Labour union Solidarity on Wednesday said it would investigate the ownership requirements for businesses participating in AWS’ Equity Equivalent Investment Programme (EEIP).
The union argued that the 100% black-owned eligibility criterion for the programme was divisive and applied race-based limitations on economic opportunity.
The tech giant disagreed, saying it was simply following the rules set out by domestic legislation.
AWS is a subsidiary of Amazon, with the former focusing on cloud computing products and services such as servers, storage, mobile development and security.
‘A compliance mechanism’
AWS explained that the EEIP was a legal requirement for multinational companies whose global policies do not allow them to sell equity to local interests.
The EEIP provides operational funding, market access, training, certification and technical enablement support to qualifying businesses for 18 to 24 months.
“The EEIP is one of the ways we meet our legal obligations under South Africa’s B-BBEE Act; legislation every company operating in the country must comply with.
“The EEIP does not limit who we can engage with, and any business in South Africa can work with AWS,” an AWS spokesperson told The Citizen.
The company cited the Department of Trade, Industry and Competition’s policies on B-BBEE, stressing it was not unique to AWS.
“Characterising this as exclusion is factually wrong. This is a compliance mechanism that is required by South African law for companies operating in the country,” the company explained.
AWS added that while it had accelerated 47 black-owned small and medium-sized enterprises in South Africa since its launch in 2020, programmes such as AWS Activate and AI for Good were “open to all”.
‘Applying a different standard’
Solidarity relayed that it had received reports alleging that AWS’ EEPI eligibility criterion was akin to the “100% exclusion of white people”.
The union said it would be investigating the reports, as well as potential remedies.
“Should it emerge that the programme does indeed amount to absolute racial exclusion, Solidarity will take decisive action,” the union confirmed.
Solidarity said it believes global entities such as AWS and its parent company should apply consistent ethical standards across all territories.
“Solidarity emphasises the principle that race should not be a ticket to economic opportunity.
“Absolute exclusion based solely on race is precisely the kind of practice that Solidarity opposes both locally and internationally.
“Multinational companies cannot promote one set of values on equality and non-discrimination to the world, while applying a different standard in South Africa,” Solidarity concluded.
