Amazon, the prominent online retail giant, announced on Wednesday its decision to shut down all seven of its warehouses located in Quebec within the forthcoming two months.
The company stated that this strategy aims to offer “even more savings to our customers over the long run.” Nevertheless, a local union that successfully managed to unionize one of the warehouses has criticized Amazon, suggesting that this closure is a tactic to thwart unionization efforts in the province.
The impending closures will result in the loss of approximately 1,700 permanent full-time jobs in the greater Montreal region, according to Amazon. An additional 250 temporary jobs will also be affected by this decision.
To adapt to the changes, Amazon indicated that it would revert to working with local third-party delivery companies for package distribution, which reflects the business model the company had in Quebec prior to 2020.
Barbara Agrait, an Amazon spokesperson, stated, “This decision wasn’t made lightly, and we’re offering impacted employees a package that includes up to 14 weeks’ pay after facilities close and transitional benefits, like job placement resources.” Agrait emphasized that the decision followed a “recent review” of Amazon’s operations in province. The facilities earmarked for closure include one fulfillment center, two sorting facilities, three delivery stations, and an additional site known as AMXL, responsible for shipping larger items like televisions and furniture.
Responding to the announcement, François-Philippe Champagne, the Canadian Minister of Innovation, Science and Industry, expressed his concerns through a post on the social media platform X. He reached out to Amazon’s Canadian operations head, voicing his disappointment.
“I expressed our dismay and frustration after learning in the news that they intend to let go of 1,700 employees and close all seven of their warehouses in Quebec,” he stated. “This is not the way business is done in Canada.”
In May, around 240 Amazon employees at a warehouse in Laval, near Montreal, successfully unionized, marking a significant milestone as the first of the tech giant’s Canadian warehouses to achieve union status. Although Amazon challenged the union’s representation rights, it ultimately lost the case at a provincial labor tribunal in October.
Caroline Senneville, the president of the union linked to the Laval organizing, firmly asserted that Wednesday’s announcement was an affront to workers in Quebec and characterized it as part of an anti-union strategy.
“It’s a move that runs counter to the provisions of the Labour Code, and one we’ll be taking a firm stand against,” she stated in a press release.
Michael Lynk, a retired law professor from Western University, commented on the situation and likened Amazon’s recent actions to a “labor relations ‘Groundhog Day'” in Quebec, referencing a similar scenario that unfolded two decades earlier involving Walmart Canada.
Walmart had closed a store in Jonquière, Quebec, citing issues related to profitability shortly after the employees received their union certification. The United Food and Commercial Workers Union contested Walmart’s decision, and in a 2014 ruling, the Supreme Court of Canada found that Walmart had breached Quebec labor regulations.
