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News

Amazon open to talks with feds after shock Quebec exit

OTTAWA —Amazon says it’s open to talks with the federal and provincial governments about its decision to shutter operations in Quebec, after the federal industry minister threatened a review of the company’s business relationship with Ottawa. 

News

Amazon open to talks with feds after shock Quebec exit

The tech giant extended an olive branch after Ottawa threatened to review its federal contracts in response to mass layoffs in Quebec

By Laura Osman
A blue and white Amazon sign with wording and both French and English appears in the foreground; in the background is a large, grey warehouse-style building with a blue awning and Amazon's smile-shaped arrow logo near the roofline.
Amazon says decision to close all of its Quebec facilities had nothing to do with the successful unionization drive at its DXT4 warehouse in Laval. Photo: The Canadian Press/Ryan Remiorz
Jan 24, 2025
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OTTAWA —Amazon says it’s open to talks with the federal and provincial governments about its decision to shutter operations in Quebec, after the federal industry minister threatened a review of the company’s business relationship with Ottawa. 

The e-commerce giant announced earlier this week it will shut down seven fulfillment and sorting facilities in the province in the next two months, and lay off more than 1,800 full- and part-time workers. The move follows the unionization of an Amazon facility in Laval in May 2024.

Amazon’s decision calls into question the company’s commitment to Canada and Canadian partners, Industry Minister François-Philippe Champagne said in a letter to Amazon CEO Andy Jassy on Thursday.

“It’s not too late to reconsider your decision,” he wrote. “As for my part, such large and sudden layoffs are cause for concern.”

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Amazon spokesperson Kristin Gable said in an emailed statement to media Friday that operational decisions are generally shared with employees first, before informing government officials. 

“We’re happy to discuss this matter further with Minister Champagne and other officials in Quebec and Canada,” she said. 

While the invitation is far from a commitment to maintain Quebec operations, Champagne appeared to take Amazon’s response as a positive sign.

“Mr. Jassy, let’s talk,” Champagne said in a social media post. “Canada is a great place to do business.”

Champagne remained coy about what the review will examine and what it could mean. “I’m not going to tell them what I’m going to do in advance, that’s called negotiation 101,” he told reporters Friday. “Let them reconsider. Let them figure out what we might do as a review.”

Ultimately the goal is to get the company to change its mind, Procurement Minister Jean-Yves Duclos told The Logic. 

If that doesn’t happen, the review would be led by Duclos’s ministry and Champagne’s  Innovation Department, in partnership with others that have contracts with Amazon.

While the results wouldn’t affect current deals with Amazon, Duclos said, it could deter the government from signing new agreements with the company. 

“Pulling out of existing contracts comes with very severe requirements and rules, and that’s because contractual obligations need to be respected,” he said. “However, new contracts and amendments to renewed contracts are part of the options.”

Ottawa inked some $25 million worth of contracts in the last year alone with Amazon Web Services, a subsidiary of Amazon that offers web services to governments and other companies.

The government’s procurement database lists 47 contracts over $10,000 in 2024, including deals with National Defence, Natural Resources Canada, Canada Border Services Agency and more. 

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Reviews like this aren’t unheard of, Duclos said, but they are usually  smaller and happen without public notice. In this case, the government is looking to send a signal to other companies that may consider emulating Amazon’s move.

“We want to stop that impression that a big decision by a big company like Amazon could incite other companies not to care about workers,” he said. 

#Amazon #economy #federal government #federal procurement #François-Philippe Champagne #labour

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A blue and white Amazon sign with wording and both French and English appears in the foreground; in the background is a large, grey warehouse-style building with a blue awning and Amazon's smile-shaped arrow logo near the roofline.

Photo: The Canadian Press/Ryan Remiorz

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