Federal review and lawsuits follow Amazon's sudden shift to third-party delivery in Quebec
A group of 68 investors have urged Amazon.com Inc. to account for its sudden decision to shut all seven warehouses in Quebec amid ongoing unionisation and collective bargaining efforts, citing operational, reputational and legal risks.
The letter, addressed to two members of Amazon’s board, was obtained by BNN Bloomberg.
On January 22, Financial Post reported that Amazon announced it would close all its Quebec warehouses and lay off about 1,700 full-time employees.
These included one fulfilment centre, two sorting centres, three delivery centres, and one AMXL facility that handled large items. The closures also impacted 250 temporary seasonal employees.
According to Amazon, seasonal workers would be compensated until the end of their contracts.
CSN, the Confédération des syndicats nationaux, represents the only unionised Amazon facility in Canada—DXT4 in Laval—which was accredited in May 2023 after a two-year organising effort.
CSN said it learned of the closure via email and called the decision part of “an anti-union campaign against the CSN and against Amazon employees.”
CSN president Caroline Senneville said the closures aim to “intimidate” workers and pledged legal support: “Our legal department is on it to see what can be done.”
Bloomberg News reported that the Federation of National Trade Unions has moved to petition a court to annul the layoffs and demand the warehouses be reopened.
Then-industry minister François-Philippe Champagne said in a letter published on X that the federal government would review its business relationship with Amazon following the closures.
My letter to the CEO of Amazon.
— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) January 24, 2025
This is not the way business is done in Canada. pic.twitter.com/ntCOVwlYmw
According to BNN Bloomberg, the investors—including unions, foundations, asset managers, and pension funds—expressed concern over Amazon’s timing and handling of the closures.
The letter stated:
“As investors, we would like to reiterate that we consider freedom of association and collective bargaining rights as fundamental rights that all companies have an obligation to respect, and crucial to long-term value creation.”
The signatories warned that not upholding those rights “can expose shareholders to significant operational, reputational, legal and regulatory risks.”
The closures, announced soon after Amazon’s expansion in Quebec, raised additional concern.
The group also referenced the possible consequences of the federal government reviewing its contractual relations with Amazon.
The letter stated that another 2,765 jobs—mostly through delivery partner companies—are likely to be impacted. The investors criticised the layoffs for being announced “without apparent consultation with affected stakeholders including the relevant trade unions.”
Amazon spokespersons provided statements to both BNN Bloomberg and Financial Post, saying the closures followed a review of Quebec operations.
The company will shift back to a third-party delivery model supported by local businesses, similar to its pre-2020 structure.
Steve Kelly told BNN Bloomberg, “Following a review of our Quebec operations, we saw that returning to a third-party delivery model supported by local small businesses… would allow us to provide the same great service and even more savings to our customers over the long run.”
Barbara Agrait stated to Financial Post, “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.”
Amazon said the third-party model only affects delivery operations, and that Quebec orders will still be fulfilled by warehouses in Canada and the US.
The company said it is complying with all applicable federal and provincial laws.
Sarah Couturier-Tanoh of SHARE, one of the signatories, said Amazon’s “interference with efforts toward unionisation are well documented,” and shareholders “deserve a full account of the key drivers of this decision and how it will serve shareholder value in the long term.”
Kiran Aziz of KLP said companies should “respect their communities freedom of association regardless of where they operate and strive to always adhere to stricter standards.”
Labour expert Adam King, assistant professor at the University of Manitoba, told Financial Post that provincial labour laws in Quebec and British Columbia are stronger than US labour protections.
He noted that certain practices Amazon uses in the US—such as captive audience meetings—are not permitted in Canada.
King added that describing the shift as a closure mischaracterises the situation, “They’re not closing their businesses in Quebec and foregoing all of that revenue and profit. They still want those Canadian dollars.”
As reported by Financial Post, warehouse workers in Delta, British Columbia, voted to unionise in May 2023. Unifor continues case management meetings with the BC Labour Relations Board.
Unifor’s Justin Gniposky said workers are seeking fair wages and work-life balance, “They’re asking for a reasonable wage increase that they can rely on year over year… and for things like work-life balance and scheduling that can meet their needs.”
BNN Bloomberg revealed a list of some of the 68 investor signatories:
- SOC Investment Group
- Achmea Investment Management
- Storebrand
- SHARE
- KLP
- Illinois Treasurer
- Folksam
- AkademikerPension
- CCLA
- Ircantec
- NEI Investments
- Church of England Pensions Board
- Vancity
- Mercy Investment Services
- Trade Union Share Owners
- B.C. General Employees’ Union (BCGEU)
- Real Estate Foundation of British Columbia
- NYC Comptroller Brad Lander
- Sarah Couturier-Tanoh (SHARE)
- Kiran Aziz (KLP)
- and others
