Criticism of Amazon's Decision to Close Distribution Centres in Quebec

Amazon has announced its decision to close seven distribution centres in Quebec, resulting in the loss of over 1,900 jobs. This move has prompted strong backlash from Canada’s Minister of Innovation, Science and Industry, François-Philippe Champagne.

In a blunt letter to Amazon CEO Andy Jassy, Champagne voiced his disappointment regarding the closures. He called on the company to rethink its decision and reconsider its commitment to Canadian workers, stating his views on X.

According to Champagne, when Amazon first entered the Canadian market, it acknowledged the value of the country’s workforce. The minister emphasized that the closures contradict Amazon’s claim of being “Earth’s best employer” and are inconsistent with the values the company promotes.

The layoffs come shortly after Amazon's Laval distribution centre became the first in North America to unionize, leading to speculation that the company's actions could be related to its opposition to unionized labor.

Champagne further noted that Amazon's operations in Quebec are crucial for the company's supply chain, enabling swift deliveries across the province and significantly impacting the local economy. He cautioned that the job losses would have broader implications for communities, underscoring the importance of Amazon's business relationships in Canada.

“It is not too late to reconsider your decision,” Champagne wrote, expressing concerns over Amazon’s long-term commitment to the Canadian market. His letter also called for a discussion about the relationship between Amazon and the Canadian government.

Currently, Parliament is prorogued due to Prime Minister Justin Trudeau’s actions, and with a federal election anticipated in the spring, Champagne’s remarks may have limited immediate impact but could serve to reassure his constituents.

In a statement provided to iPhone in Canada, Amazon spokesperson Barbara Agrait mentioned that the company had conducted a review of its operations in Quebec. According to Agrait, returning to a third-party delivery model supported by local small businesses, similar to what was in place until 2020, would enable Amazon to sustain its service quality while providing additional savings to customers.

She also noted that this difficult decision included offering affected employees a severance package of up to 14 weeks’ pay, along with transitional benefits like job placement resources.

Essentially, the unionization of Laval workers led Amazon to appeal to the labor board, claiming that the union vote did not respect worker rights due to the lack of a secret ballot. Amazon ultimately lost the appeal and has now decided to exit the Quebec market.

Amazon, Quebec, jobs