The online shopping giant Amazon is soon to shut its seven distribution centers in Quebec within two months, causing a loss of 1,700 full-time posts and 250 temporary positions. This piece of news harbors several questions and concerns that need to be looked upon. Let us break down the details of the situation and understand the current scenario behind this talk.
Why is Amazon closing its Quebec warehouses?
From a recent review of Amazon operations in Quebec, Barbara Agrait revealed,”Following a recent review of our Quebec operations, we’ve seen that returning to a third-party delivery model… will allow us to provide even more savings to our customers.” This implies that Amazon is away from hiring third-party delivery services in Quebec, a model which was operational before 2020.
How will this impact Amazon employees in Quebec?
The closures will affect some 1,700 permanent full-time workers and 250 temporary employees in the greater Montreal area. Amazon said it would provide affected employees with a package including up to 14 weeks’ pay after the facilities close, plus transitional benefits such as job placement resources.
Is this related to recent unionization efforts?
Some believe there might be a connection. In May 2024, approximately 240 Amazon workers at a warehouse in Laval, a Montreal suburb, unionized, becoming the first of the company’s Canadian warehouses to do so. Amazon challenged the union’s right to represent the workers but lost at a provincial labor tribunal in October. Caroline Senneville, president of the union involved with the organizing … the closures are part of an anti-union … . She described the move as “a slap in the face … .”
What has been the government’s response?
The Canadian Minister of Innovation expressed his dismay and frustration upon learning of Amazon’s plans. He contacted the head of Amazon expressing his disapproval of the situation. Additionally, the Canadian government has indicated it may review its business relationships with Amazon, including cloud computing contracts, in light of the company’s decision.
Has Amazon closed warehouses elsewhere for similar reasons?
This situation in Quebec is reminiscent of past events. For instance, in 2005, Walmart closed a store in Jonquière, Quebec. Some see Amazon’s recent move as a parallel to this case.
What does this mean for Amazon customers in Quebec?
Amazon has declared intentions to perpetuate its service in Quebec for the customers, in cooperation with local courier service providers, like it did until 2020. The Company firmly believes that in the long term, users will benefit from such a situation. Yet, there is still a question as to how this would affect delivery times and quality of services offered.
This would represent a more general perspective: the shutdown of Amazon’s warehouses in Quebec reflects the importance to its staff, the economy, and business considerations in the region. This has twined talks about labor relations and corporate responsibility among large sections of the population, effects of which will be experienced in the next few months.
