Amazon agrees to discuss closures of Quebec warehouses with government officials, but say plans remain unchanged
Posted January 24, 2025 8:34 am.
Last Updated January 24, 2025 6:56 pm.
Amazon is willing to discuss the closures of its Quebec warehouses with Canadian and provincial officials, confirmed Jean-Yves Duclos, Minister of Public Services and Procurement of Canada — on Friday afternoon. What this all means is still very unclear.
This comes after the Minister François-Philippe Champagne published a letter to the American e-commerce giant on social media Thursday night calling them out for the 1,700 layoffs of regular Amazon employees and 250 seasonal workers in the next two months and the closure of seven warehouses — as announced on Wednesday.
Amazon justified its decision by saying it wanted to “return to a third-party delivery model supported by small local businesses, similar to what (it had) in 2020.”
The Quebec Ministry of Labour and Social Solidarity confirmed to CityNews that at least 1,600 more layoffs would also be coming for Quebec workers in delivery partner companies linked to Amazon — bringing the total losses of jobs to about 3,000 for Quebecers.
“[Amazon] will sit with us and apparently also the Quebec government to make sure that we can share with them the disappointment of what they have announced. Not only what they have announced, but the way they have announced it to with no pre-warning, no explanation whatsoever to cut the jobs of more than 3,000 workers in Canada is not acceptable. It’s not an acceptable way of working with Canada and with Canadians,” said Duclos in Ottawa on Friday.
Amazon tells CityNews that their plans remain unchanged.
“We regularly have discussions with officials across Canada to discuss matters of interest. However, when we make operational decisions like this, we generally share the news first with employees and then officials. We’re happy to discuss this matter further with Minister Champagne and other officials in Quebec and Canada,” Amazon spokesperson Steve Kelly wrote in a statement to CityNews on Friday afternoon.
“We are a good partner with that company and many others in Canada, but we also expect those partners to work appropriately with workers,” added Duclos.
“For instance, it is not acceptable to punish workers because they become unionized. In Canada, the right to become unionized is the right that is fundamental and is not only fundamental to the workers, but fundamental to the ability of foreign companies, multinational companies to be able to work with us in our country. So it’s a joint relationship and we expect their side of the relationship to be better dealt with.”
When asked by CityNews on Wednesday if the closures of their warehouses in Quebec had anything to do with the recent unionization of workers at their location in Laval, Amazon refuted the claim.
Confédération des syndicats nationaux (CSN) said they weren’t buying it, and feel there must be a connection — as do federal politicians who spoke out.
NDP leader Jagmeet Singh said Wednesday: “This is very clearly Amazon trying to union bust. […] This is wrong what’s happening to them. But I really am inspired by the fact that they were trying to fight for the rights. I’m really disappointed and frankly it’s disgraceful what Amazon’s doing.”
Champagne’s letter to Amazon
Champagne, Minister of Innovation, Science and Industry, sent a letter to Amazon CEO Andy Jassy on Thursday, inviting the multinational to “immediately” reconsider closing its Quebec warehouses.
Champagne, Amazon’s decision, “goes against (its) desire to be a leader and strategic partner in Canada’s industrial economy.”
“The decision you announced (Wednesday) does not inspire confidence and raises questions about your commitment to Canada and your Canadian partners”, he wrote, expressing his ‘deep disappointment.’
Champagne told Jassy that “it’s not too late” to reconsider this decision, pointing out that “Amazon’s distribution centers in Quebec play a key role in the company’s supply chain.”
Champagne hasn’t said how the federal government might respond. Ottawa has ongoing contracts with Amazon and the federal government’s website lists more than 200 contracts signed since 2020. Several of those contracts are worth more than $5 million each — one contract is for $22.7 million.
“I’m not going to tell them what I’m going to do in advance. That’s called negotiation 101,” he said. “Let them reconsider, let them figure out what we might do as a review.”
Expressing concern about the “massive and sudden” layoffs that will take place in the wake of the closures, Minister Champagne issued a warning to the Seattle-based company.
“You will undoubtedly understand that this action requires a review of the commercial relationship that exists between Amazon and the Canadian government,” he warned.
Champagne invited Jassy to discuss the matter further, reiterating that “Amazon derives significant benefits from the Canadian economy.”
On Friday, in Ottawa, Champagne told reporters, “We’re standing up.”
“This is also about treating Canada with respect — not only we had a discussion yesterday, but in the way that it’s hard for me to understand they did not even mention to me that they would lay off more people after we had our conversation,” added Champagne about reports that 1,500 layoffs at other companies connected to Amazon in Quebec were taking place.
“I have seen better corporate citizens in my life. When you have a discussion with a government a federal government or provincial government, you would expect corporate citizen and companies and businesses to be transparent to be open and I feel honestly this morning this was not the nature. I would have I would have assumed like anyone that they would tell me the full story, but what I got in the phone call yesterday was half of their story.”
“So you can imagine this morning, if yesterday I was not pleased, this morning I’m even less pleased than I was yesterday and that’s why the letter was important. They’ll have me fighting to make sure that this is not going to go on unanswered in Canada.”
On Wednesday, Champagne had also spoken to the head of Amazon Canada to express Ottawa’s “disappointment” and “frustration” in this matter.
Montrealers calling for a boycott
Louisa Worrell, is calling for a boycott of Amazon. She was handing out flyers in downtown Montreal on Friday, looking to get customers onboard.
“We have to let them know that where we can show them how we feel,” said Worrell, co-founder of Ici, on boycotte Amazon. “We will show them how we feel. And that’s how we spend our money.”
“I closed my Amazon account and I closed Prime video, and all my subscriptions because I’m going to buy Quebec products and show solidarity,” said one person CityNews spoke to on Friday.
“It’s not just about boycotting for a day, it’s about doing it for the long run. And we know that Quebecers buy so much from Amazon. I hope it holds,” added another Montrealer.
Others, said they would likely continue to use Amazon’s services. “Probably, honestly just because it’s the easiest way to order stuff,” explained one man.
Another sympathized with employees facing layoffs, “It’s so hard for people and their families. I’m sad for them.”
Quebec job losses
Amazon Canada has indicated that dismissed employees will be entitled to “transitional benefits, such as external employment relocation resources” and compensation of up to 14 weeks.
For his part, Premier François Legault assured that the Quebec government would “see everything (it) can do to help them find another job,” mentioning the construction sector among others.
-With files from Erin Seize, and The Canadian Press: Stéphane Rolland and Mathieu Paquet
