Amazon will close all seven of its warehouses in Quebec, a decision that will lead to the loss of 1,700 permanent jobs and 250 temporary positions. This announcement follows the unionization of workers at an Amazon warehouse in the Montreal suburb of Laval, Quebec, in May. In response, Industry Minister François-Philippe Champagne has called for a review of Ottawa's "business relationship" with Amazon, as the federal government holds over 200 contracts with the e-commerce giant, each worth more than $10,000 since 2020.
Minister Champagne has proactively engaged with Amazon Canada’s CEO regarding the closure and has communicated with Amazon CEO Andy Jassy through a formal letter, urging reconsideration of this decision. Despite these efforts, Amazon maintains that the closures are not related to the recent unionization efforts but are instead aimed at enhancing efficiency and cost-effectiveness in delivering services to customers.
The closure represents a significant economic setback for Quebec, where the elimination of these jobs will resonate throughout the local economy. Although Amazon insists that the decision was driven by operational considerations, the timing following the unionization has raised questions about potential linkages. This development poses a considerable challenge to the affected workers and has sparked concerns over future employment prospects in the region.
The federal government has yet to outline its specific response to this development. However, the closure marks a pivotal moment in its dealings with Amazon, given their extensive contractual engagements. The loss of jobs is a critical issue for those affected, further complicating the narrative around labor relations and corporate decisions.
