Amazon exits operations in Quebec, cuts around 1,700 jobs; Ottawa is dissatisfied, writes Reuters
(Reuters) – E-commerce giant Amazon.com (NASDAQ: ) is exiting operations in the Canadian province of Quebec, leading to the loss of about 1,700 full-time jobs, the company said on Wednesday, prompting Ottawa to voice its displeasure .
The online retailer will phase out operations at seven locations in the province over the next two months — the only locations in Canada with unionized Amazon employees.
It will return to a third-party delivery model, relying on local small businesses, similar to its pre-2020 approach.
“After a recent review of our operations in Quebec, we saw that returning to a third-party delivery model … would allow us to provide even more savings to our customers,” Amazon spokeswoman Barbara Agrait said.
In May, Amazon warehouse workers represented by the Canadian labor union Confédération des syndicats nationaux (CSN) unionized, citing dissatisfaction with wages and inadequate health and safety measures at the facilities.
Federal Innovation Minister Francois-Philippe Champagne said he spoke with the head of Amazon in Canada and expressed the government’s dismay and frustration.
“This is not the way to do business in Canada,” he said in a post on X.
CSN, which represents 300 workers at the site north of Montreal, said the decision makes no business sense and directly targets the company’s only unionized warehouse in Canada.
The workers were in the process of negotiating their first collective agreement.
“There is no doubt that the closings announced today are part of an anti-union campaign against CSN and Amazon employees,” CSN President Caroline Senneville said in a French-language statement.
“This move is against the provisions of the Quebec Labor Code, which we will strongly oppose,” Senneville added, without providing immediate details.
The move will also affect around 250 seasonal workers. Amazon will offer affected employees a package that includes up to 14 weeks’ pay and “transitional benefits such as employment funds,” Agrait added.
