Amazon exits Quebec operations, to chop about 1,700 jobs; Ottawa sad

(Reuters) – E-commerce large Amazon.com (NASDAQ:AMZN) is exiting its operations within the Canadian province of Quebec, resulting in the lack of about 1,700 full-time jobs, the corporate stated on Wednesday, prompting Ottawa to precise its unhappiness.

The web retailer will part out operations throughout seven websites within the province — the one location in Canada with unionized Amazon staff — over the following two months.

It’s going to return to a third-party supply mannequin, counting on native small companies, much like its strategy earlier than 2020.

“Following a latest assessment of our Quebec operations, we have seen that returning to a third-party supply mannequin … will enable us to supply much more financial savings to our prospects,” Amazon spokesperson Barbara Agrait stated.

In Might, Amazon warehouse employees represented by the Canadian labor union Confédération des syndicats nationaux (CSN) unionized, citing dissatisfaction with wages and insufficient well being and security measures on the amenities.

Federal Innovation Minister Francois-Philippe Champagne stated he had spoken to the top of Amazon Canada and expressed the federal government’s dismay and frustration.

“This isn’t the best way enterprise is finished in Canada,” he stated in a put up on X.

The CSN, which represents 300 employees on the web site north of Montreal, stated the choice made no enterprise sense and immediately targets the corporate’s solely unionized warehouse in Canada.

The employees had been within the means of negotiating their first collective settlement.

“There isn’t any doubt that the closings introduced immediately are a part of an anti-union marketing campaign towards CSN and Amazon staff,” stated CSN president Caroline Senneville in a French-language assertion.

“This transfer contradicts the provisions of the Quebec Labour Code, which we are going to strongly oppose,” Senneville added, with out offering rapid specifics.

The transfer may even have an effect on roughly 250 seasonal employees. Amazon will provide affected staff a bundle together with as much as 14 weeks’ pay and “transitional advantages resembling job placement sources,” Agrait added.