Amazon confirms 1,700 layoffs following Quebec warehouse closures

In a move that has sent shockwaves through the Canadian labor market, Amazon has announced the closure of its seven warehouses in Quebec, resulting in the layoff of 1,700 employees. The decision, which comes less than a year after employees at one of the facilities unionized, has sparked a wave of criticism from labor unions, local government officials, and worker advocates. The closures mark a significant chapter in Amazon's operational history in Canada, raising questions about the tech giant’s labor practices and long-term commitment to the region.

Amazon stated in an email that the closures are part of a strategic shift to optimize operations and improve service efficiency. Barbara Agrait, an Amazon spokeswoman, clarified in a separate statement that the company plans to transition to a delivery model relying on third-party local small businesses. “This decision wasn’t made lightly,” Agrait said, emphasizing that the move is aimed at offering the best possible service to customers in a cost-effective manner. She added that affected employees will be provided with up to 14 weeks of severance pay.

Despite these reassurances, the timing of the announcement has raised eyebrows, particularly because it follows recent efforts to unionize one of the Quebec facilities. In May, Quebec officials approved the unionization of 300 workers at a Laval warehouse, making it the first Amazon warehouse in Canada to unionize. Negotiations for a collective bargaining agreement began in July and were nearing arbitration when Amazon revealed its decision to shutter its Quebec operations.

Labor unions and worker advocates have been quick to condemn the closures, accusing Amazon of undermining union efforts. François L’Écuyer, a spokesman for the Confédération des Syndicats Nationaux (CSN), the union representing the Laval warehouse employees, argued that the decision violates Quebec’s labor code. According to L’Écuyer, the law stipulates that an employer cannot make significant changes to working conditions while arbitration is pending.

“Closing its facilities is a significant change in working conditions,” L’Écuyer said, adding that the closures are an attempt to avoid arbitration. CSN President Caroline Senneville echoed these sentiments, calling the move an “anti-union campaign against the CSN and Amazon employees.” In a strongly worded statement, Senneville described the closures as “a slap in the face for all workers in Quebec.”

The closures have also drawn criticism from government officials. François-Philippe Champagne, Canada’s industry minister, expressed his dismay on social media, stating that he had conveyed his “frustration” to the head of Amazon Canada. “This is not the way business is done in Canada,” Champagne wrote, signaling the government’s disapproval of the company’s actions.

Amazon’s operational history in Quebec adds another layer of complexity to the controversy. The company first announced plans to establish a fulfillment center in the province in 2019, creating 300 full-time jobs. By 2021, Amazon had expanded its footprint in Quebec with the opening of two sorting centers and three delivery stations, including the Laval warehouse that would later unionize. These facilities were hailed as a boon for the local economy, making the sudden closures all the more jarring.

The Quebec closures are part of a larger trend of cost-cutting measures by Amazon. Since the end of 2022, the company has laid off at least 27,000 workers globally as it seeks to streamline operations. While Amazon has framed these layoffs as necessary for efficiency, critics argue that the company’s actions disproportionately impact its most vulnerable workers.

The decision to pivot to a delivery model based on third-party local businesses raises further questions about the long-term implications for labor rights. While this model may reduce operational costs, it often shifts financial and logistical burdens onto smaller companies, potentially creating precarious working conditions for delivery drivers and other workers.

The unionization of the Laval warehouse was a landmark achievement for labor organizers in Canada. Represented by the CSN, the 300 workers at the facility included many immigrants from Latin America, Africa, and Asia. Union leaders viewed the collective bargaining agreement as a crucial step toward securing better wages, benefits, and working conditions for these employees.

However, the broader push to unionize Amazon’s other facilities in Quebec faced significant hurdles. According to L’Écuyer, the CSN had not yet secured majority support for unionization at the six other warehouses slated for closure. The timing of Amazon’s decision has led to speculation that the closures were motivated by a desire to stymie union efforts before they gained further momentum.

For the 1,700 workers losing their jobs, the closures represent a devastating blow. Many of these employees are immigrants who relied on stable employment at Amazon to support their families. The severance package of up to 14 weeks’ pay may provide temporary relief, but it is unlikely to compensate for the long-term financial insecurity caused by the layoffs.

The closures also highlight the precarious nature of employment in the gig economy. As Amazon shifts to a third-party delivery model, workers may find themselves in less stable and more exploitative roles. Labor advocates warn that this trend undermines efforts to improve working conditions and secure fair wages for employees in the logistics sector.

Amazon has denied that the closures are related to unionization efforts, insisting that the decision was based solely on operational considerations. The company’s spokesperson, Barbara Agrait, reiterated that the move was aimed at improving customer service and cost efficiency. However, these explanations have done little to quell skepticism from labor unions and public officials.

Amazon founder Jeff Bezos, who also owns The Washington Post, has faced criticism for the company’s labor practices in the past. The Quebec closures are likely to intensify scrutiny of Amazon’s treatment of its workforce, particularly in regions where unionization efforts are gaining traction.

The closures come at a time when labor movements are gaining momentum across various industries. In Canada and beyond, workers are organizing to demand better pay, improved working conditions, and greater job security. Amazon’s actions in Quebec could serve as a cautionary tale for other companies navigating the challenges of unionization.

Labor experts note that the Quebec case underscores the importance of robust labor laws to protect workers from retaliatory actions. While Quebec’s labor code prohibits employers from altering working conditions during arbitration, enforcement remains a challenge. The outcome of this dispute could set a precedent for future labor relations in Canada.