Amazon has announced plans to cease operations at seven facilities in Quebec over the next two months. The closures include one fulfillment center, two sorting centers, three delivery stations, and one AMXL (extra-large) delivery station co-located with a sorting center. This decision will impact approximately 1,700 regular employees and 250 temporary seasonal workers in the province.
Transition to Third-Party Delivery Model
The company stated that it will revert to a third-party delivery model supported by local small businesses, a system previously in place until 2020. Amazon spokesperson Barbara Agrait emphasized that this move aims to maintain high-quality service and offer greater savings to customers in the long term. She clarified that the decision was not influenced by the unionization of 200 employees at Amazon’s DXT4 warehouse in Laval, Quebec, which occurred in May 2024.
Employee Compensation and Support
Affected regular employees will receive severance packages, including up to 14 weeks of pay following the closure of the facilities, along with transitional benefits such as job placement resources. Temporary seasonal workers will be compensated until the conclusion of their contracts. Amazon has expressed its commitment to assisting employees during this transition period.
Government Response
Quebec Employment Minister Kateri Champagne Jourdain acknowledged the company’s decision as a corporate reorganization and assured support for the displaced workers. She stated, “We’ll be there for the employees; that’s what we do in the employment ministry, help workers find other work.” The provincial government is actively engaging in discussions to address the situation and provide necessary assistance to the affected workforce.
Potential Role of Intelcom
In light of Amazon’s shift to a third-party delivery model, Intelcom, an existing subcontractor for Amazon’s delivery and sorting services, may assume a more prominent role. Numerous job postings were recently listed on Intelcom’s website, indicating potential opportunities for the displaced Amazon employees. This development suggests a possible avenue for continued employment within the logistics and delivery sector in Quebec.
Background on Unionization at DXT4 Warehouse
In May 2024, the Administrative Labour Tribunal certified the unionization of approximately 200 employees at Amazon’s DXT4 warehouse in Laval, marking the first instance of an Amazon warehouse unionizing in Canada. The Confédération des syndicats nationaux (CSN) led the unionization efforts, citing concerns over work pace, health and safety measures, and wages. Despite Amazon’s plans to appeal the decision, the unionization was upheld, and the company was legally required to engage in collective bargaining with the newly formed union.
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