On January 22, Amazon.com announced its decision to cease operations in Quebec, resulting in the elimination of around 1,700 full-time positions, according to a company representative.
The e-commerce giant will gradually phase out activities at seven locations across Quebec, which is the sole province in Canada with unionized Amazon staff, within the next two months. Amazon will transition back to a third-party delivery system, engaging local small businesses, a model reminiscent of its pre-2020 approach.
"After assessing our Quebec operations, we have determined that reverting to a third-party delivery model can enhance cost savings for our customers," stated Amazon spokesperson Barbara Agrait.
The restructuring will impact approximately 250 seasonal employees. Amazon plans to provide the affected staff with a compensation package consisting of up to 14 weeks' pay and transitional benefits, such as job placement assistance, as disclosed by Agrait.
In May, Amazon warehouse workers in Quebec unionized under the Confederation of National Trade Unions (CSN), expressing concerns about wages and safety protocols within the facilities. The CSN, representing 300 employees at the Montreal-based site, criticized Amazon's announcement as illogical, pointing out that it specifically targets the company's sole unionized warehouse in Canada.
The affected workers were in the midst of negotiating their inaugural collective agreement. In a statement, CSN President Caroline Senneville emphasized, "The closures announced today are evidently part of an anti-union agenda directed at the CSN and Amazon workers." Senneville further stated that this decision runs counter to Quebec's labor laws, which the CSN intends to challenge vigorously, although details were not provided immediately.