Canada: Investors express concerns to Amazon over abrupt closures of warehouse & delivery sites, alleged union busting, & impacts to estimated 3,000 workers; incl. co. response
Nearly 70 investors representing more than USD2 trillion in combined assets under management and advice have written to Amazon expressing serious concerns over its decision to close all seven of its warehouses in Quebec in January 2025. The closures laid off 1,700 workers and 250 temporary seasonal workers, which workers and union representatives allege to be retaliatory action during live contract negotiations.
Amazon’s interference with unionization efforts is well documented. Given the timing and speed of the company’s departure from Quebec, shareholders deserve a full account of the key drivers of this decision and how it will serve shareholder value in the long term.Sarah Couturier-Tanoh, Director of Shareholder Advocacy, SHARE
The fact that major investors managing billions in assets are sounding the alarm on Amazon’s abrupt closure of its Quebec operations shows how out of step they are with global expectations for responsible business conduct. When companies retaliate against collective bargaining with mass layoffs and operational shutdowns, it’s not just workers who pay the price—shareholders, customers, and communities all bear the consequences.Christy Hoffman, Secretary General of UNI Global Union
The Federation of National Trade Unions released a statement in February that it would petition a court to annul the layoffs and order the warehouses to reopen, as well as asking for payment of compensation and damages. The Federation had been negotiating with Amazon since July 2024 to create a collective agreement for 300 employees at a Laval warehouse.
According to Oxfam, the measures are reportedly a form of union busting since Amazon plans to move to a subcontracting model, transferring delivery operations to local third-party contractors. The NGO said the move "reflects the company's ongoing effort to prevent unionization, highlighting the need for Amazon to put people before profits and respect workers' rights to organize and ensure decent working conditions", and points to previous allegations Amazon has tried to prevent unionisation. Amazon has denied a link between the closures and the recent unionisation of one of its warehouses in Quebec.
The government estimates a further 1,600 layoffs for workers in delivery partners companies linked to Amazon.
“Nobody had any idea. We were all blindsided, nobody knew nothing. There was no like, ‘OK, this is what’s coming.' Sit down your employees, you know, have a meeting. Let them know what’s going on. They were saying in the news, ‘Oh, it’s not about the union.' It’s definitely about the union,”Worker at Amazon for three years
The Resource Centre invited Amazon to respond to the reports, including to:
- Respond to the allegations of a link between the closures and recent unionization of one of its warehouses in Quebec, and that the layoffs have been taken as part of an alleged union busting campaign;
- Respond to the call from Oxfam to commit to a neutral stance on union activities, and engage in good faith negotiations with elected labour unions to uphold collective bargaining rights; and,
- Disclose what measures Amazon has taken since the announcement to ensure impacts on livelihoods for Amazon employees, temporary seasonal workers are at a minimum, including what support has been offered to workers with indirect jobs at partner delivery companies.
Amazon's response can be read below; it does not address the first or second points above, and partially addresses the third.
Acknowledged as a fundamental right in international treaties, conventions, and declarations, freedom of association is essential in enabling workers to protect their other human and labour rights, including achieving stable real wage growth... KLP expects our portfolio companies to respect their commitments to freedom of association regardless of where they operate and strive to always adhere to stricter standards. The situation in Quebec is particularly concerning due to its significant impact on workers, the region, and the company, which faces increased scrutiny from investors, unions, media, and the Canadian government.Kiran Aziz, Head of Responsible Investments at KLP