Amazon.com Inc (NASDAQ:AMZN). has decided to shut down all seven of its warehouses in Quebec, Canada, leading to the termination of over 1,900 workers. This move has spurred the Federation of National Trade Unions to initiate legal action.
The union plans to request a court to cancel the layoffs and mandate the reopening of the warehouses. The Federation is also seeking compensation and damages for the affected employees, as per a statement released on Tuesday.
Amazon is currently in the process of ending employment contracts in the French-speaking province. The company plans to discontinue relationships with over 2,600 additional workers who are associated with delivery partners, as reported by Quebec’s employment ministry. Instead, Amazon will be utilizing the services of subcontractors, including Montreal-based Intelcom Courrier Canada Inc.
Caroline Senneville, the Federation President, criticized Amazon's tactics in the statement. She claimed that Amazon's 'new business model' is a strategy to avoid its responsibilities under the Labour Code. Senneville urged the court to recognize that this maneuver breaches the law and to subsequently order the reinstatement of Amazon’s workforce.
The union has been in discussions with Amazon since July to establish a collective agreement for 300 employees at a warehouse in Laval, a Montreal suburb. The announcement of the closures came on Jan. 22, less than a year after the Laval workers formed a union. Amazon, however, stated that the decision to close was not connected to the unionization effort. As of Tuesday, the company had not responded to requests for comment.
