Amazon recently made the decision to close several of its warehouses in Quebec, resulting in the elimination of at least 1,700 permanent jobs. The giant e-commerce retailer claims that this move is part of a broader strategy to “deliver even more savings to our customers in the long run.” But some are questioning this: several workers, labor experts, and unions believe that these closures may be part of a broader strategy to stop unionization. After all, one of the affected facilities had recently voted to unionize, the first such successful vote to unionize at an Amazon facility in Canada. The timing raises concerns that Amazon might be sending a message to other locations beyond Quebec: Unionize at your own risk.

While Amazon denies any link between the closures and the recent unionization of one of its warehouses in Quebec and has offered a severance package for those affected — including up to 14 weeks of pay and transitional benefits — the reality is that over 1,700 workers are now left without jobs. In addition, Amazon plans to move to a subcontracting model, transferring its delivery operations to local third-party contractors, rather than directly employing its workforce, thereby avoiding the unionization efforts.

Profit Over People?

By outsourcing delivery services, Amazon is choosing immediate profit maximization by avoiding the responsibility of directly employing workers. While the approach may reduce labor costs in the short run, it overlooks the obvious long-term benefits of investing in its workforce such as reduced turnover, better service quality, and enhanced delivery efficiency.

This is not the first time Amazon faces allegations of labor-related issues. In fact, the company’s only other unionized workforce in North America, in Staten Island, New York, still does not have a collective bargaining agreement, more than a year and a half after workers voted to unionize. This long delay raises questions about the company’s commitment to respecting workers' rights to collective bargaining and freedom of association.

Amazon has a long history of preventing unionization. In 2022, the company spent over $14 million on anti-union consultants, nearly $10 million more than the previous year. In 2023, a judge ruled that Amazon supervisors had illegally threatened to withhold wages and benefits from workers who voted to unionize.

Late last year, workers at seven U.S. locations went on strike over poor working conditions. And in December, Rev Ryan Brown, a well-known leader at the RDU1 warehouse in Garner, was terminated after leading efforts to unionize. His firing highlights the existing tensions between Amazon and workers that are advocating for better conditions.

Unfortunately, those are not isolated cases. The company has even gone as far as challenging the constitutionality of the National Labor Relations Board (NLRB) through legal action.

The current situation with Amazon in Quebec is very similar to something that happened in the province 20 years ago when Walmart closed a store in Jonquière just months after workers achieved union certification. The United Food and Commercial Workers union, which represented the workers, argued that the closure was a way to get back at them. Several saw it as a warning to workers: Joining a union could cost you your job.

Amazon has been widely criticized for how it prioritizes profits over workers’ well-being. In its report At Work and Under Watch, Oxfam revealed that how the company measures, watches and controls workers unfairly punishes them, stifles worker voice, and negatively impacts worker health, safety, and well-being. The report also details anti-union practices that Amazon has deployed in the recent years. At the end of 2024, Oxfam filed a formal complaint to the United Nations Working Group on Business and Human Rights, calling attention to the abusive labor conditions inside Amazon’s warehouses. Despite those calls to action, the company has still not taken any meaningful steps to address those concerns.

Amazon’s affront to its employees in Quebec coincides with the release of Oxfam’s annual report on global inequalities (Takers not Makers), which notably cites Jeff Bezos – founder of Amazon – as one of the billionaires who became wealthier last year due to the monopolistic power of the companies they own. While Amazon’s chairman and founder’s wealth has risen to 219.4 billion dollars, 44% of the world’s population lives below the poverty line set by the World Bank. In 2021, Amazon paid its CEO Andrew Jassy $212.7 million. The median annual salary for Amazon workers during the same period was $32,855, resulting in a CEO-to-worker pay ratio of 6,474 to 1. Meanwhile, Amazon continues its extreme efforts to discourage unionization among its employees, which results in denying access to protections, higher pay, and reduced gender and racial pay gaps for these workers. This is one way companies like Amazon contribute to economic inequality.

The Path Forward: What Amazon Must Do

Considering these troubling facts, Oxfam is calling on Amazon to publicly commit to a neutral stance on union activities. Specifically, we are urging the company to:

1. Respect workers' rights to freely associate and form unions, in line with international human rights standards.
2. Engage in good faith negotiations with any duly elected labor unions, ensuring that collective bargaining rights are respected.

These steps would demonstrate that Amazon is willing to put people before profits and respect the rights of its workers to organize and ensure decent working conditions. It remains a question whether Amazon will take responsibility for the well-being of its workers or continue its approach of resisting unionization efforts at all costs. The answer could have long-term implications for workers in the US and around the world.