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Amazon has once again come under fire for its decision to close seven facilities in Quebec, Canada.
The e-commerce giant received a letter from more than three dozen shareholders and interested parties about the closures, which have garnered anger from residents in the impacted area, as well as accusations over union busting from labor union Confédération des syndicats nationaux (CSN).
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Amazon has repeatedly said it chose to close the facilities in favor of using small businesses for last-mile package delivery, as it had done in the years before it invested in the province. Steve Kelly, a spokesperson for Amazon, reiterated that sentiment with regard to the letter.
“Following a review of our Quebec operations, we saw that returning to a third-party delivery model supported by local small businesses, similar to what we had until 2020, would allow us to provide the same great service and even more savings to our customers over the long run,” Kelly said in an emailed statement.
But that explanation isn’t robust enough for the letter’s signatories, which include the likes of SHARE, Mercy Investment Services, the Real Estate foundation of British Columbia and others.
In the letter penned to the retail behemoth, the signatories, which represents more than $2 million combined assets under management or advice, said they chose to inquire with Amazon because “These closures add to the growing concerns about Amazon’s commitment to respecting employees’ rights to freedom of association and collective bargaining, which in turn creates risk for investors.”
The choice to close the facilities, they noted, directly impacted about 1,900 Amazon workers, but they further project “an additional 2,765 jobs will be lost, primarily workers employed by Amazon’s delivery partner companies.”
Kelly said that the affected workers received severance and noted that Amazon acted legally.
“This decision wasn’t made lightly, and we provided impacted employees a package that includes up to 14 weeks’ pay after facilities closed and transitional benefits, like job placement resources. Throughout this process, we’ve complied and will continue to comply with all applicable federal and provincial laws.”
The shareholders further indicated that they are “concerned about the broader consequences of the company’s sudden announcement,” including a lawsuit filed by CSN and the Canadian government’s promise that it will re-evaluate its contracts with Amazon.