A group of investors have signed a letter to Amazon.com Inc. regarding its decision to close Quebec warehouses and terminate workers, highlighting risks to Amazon’s reputation for respecting employee’s freedom of expression and collective bargaining.
The letter, obtained by BNNBloomberg.ca, was addressed to two members of the e-commerce giant’s board of directors. The group of 68 investors raised concerns about the company’s announcement to close all seven of its Quebec warehouses amid collective bargaining contract negotiations and unionization efforts. The closure adds to “growing concerns” regarding Amazon’s commitment to respect employee rights related to freedom of association and collective bargaining, the investors said.
“As investors, we would like to reiterate that we consider freedom of association and collective bargaining rights as fundamental rights that all companies have an obligation to respect, and crucial to long-term value creation,” the letter reads.
“Failing to properly uphold freedom of association and collective bargaining rights can expose shareholders to significant operational, reputational, legal and regulatory risks. In particular, we are surprised the company is making a strategic business decision to close its operations so suddenly, and so soon after expanding operations and investment in Quebec.”
Steve Kelly a spokesperson for Amazon responded with a statement to BNNBloomberg.ca Wednesday.
“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,” he said.
“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.”
In January, Amazon moved to shut down its seven facilities in Quebec. The move prompted legal action from the affected union, according to Bloomberg News, with the Federation of National Trade Unions attempting to petition a court to annul the layoffs and order the warehouses be reopened.
Francois-Philippe Champagne, Canada’s industry minister at the time, said Amazon’s decision to shut the warehouses down would prompt the federal government to review its current deals with the e-commerce giant, Bloomberg News reported.
“You will undoubtedly understand that such action calls for a review of the business relationship that exists between Amazon and the Government of Canada,” he said in a letter published on X.
The group of nearly 70 investors shared concerns in the letter about “potential implications of the Canadian federal government’s decision to review its contractual relations with the company” after Amazon announced the closures.
The closures impacted around 1,900 permanent full-time employees and the letter states that another 2,765 jobs are likely to be impacted, mostly individuals employed by amazon’s delivery partner companies.
“As investors we are concerned about the manner in which these layoffs have been announced and managed, without apparent consultation with affected stakeholders including the relevant trade unions,” the letter said.
The group of investors that signed the letter include investment companies, unions, foundations, pension funds and more.
Some of the investors include:
- SOC Investment Group
- Achmea Investment Management
- Storebrand
- SHARE
- KLP
- Illinois Treasurer
- Folksam
- AkademikerPension
- CCLA
- Ircantec
- NEI Investments
- Church of England Pensions Board
- Ethos Foundation
- Vancity
- TUC Superannuation Society
- Mercy Investment Services
- Domini Impact Investments
- Epworth Investment Management
- Zevin Asset Management
- Fonditel B
- Friends Fiduciary Corporation
- Sustainable Advisors Alliance
- Bridgestone Hispania Pension, Fondo De Pensiones
- Congregation of the Daughters of the Cross of Liege, English Province
- B.C. General Employees’ Union (BCGEU)
- Catherine Donnelly Foundation
- Sisters of the Holy Names of Jesus and Mary
- Handmaids of the Sacred Heart of Jesus (Atlantic Europe Province)
- Real Estate Foundation of British Columbia
- Plan de Pensiones del Sistema Asociado de la Unión
- General de Trabajadoras y Trabajadores, UGT
- The Central Finance Board of the Methodist Church
- Adrian Dominican Sisters, Portfolio Advisory Board
- Daughters of Charity, Province of St. Louise
- Regroupement pour la responsabilité sociale des entreprises (RRSE)
- NYC Comptroller Brad Lander
- Trade Union Share Oweners
- University of St Michael’s College
Sarah Couturier-Tanoh, the director of shareholder advocacy at the Shareholder Association for Research and Education (SHARE), one of the signatories of the letter, said in a statement that Amazon’s interference with efforts toward unionization are “well documented.”
“Given the timing and speed of the company’s departure from Quebec, shareholders deserve a full account of the key drivers of this decision and how it will serve shareholder value in the long term,” she said.
Kiran Aziz, the head of responsible investments at KLP, which also signed the letter, said in a statement that KLP expects its portfolio companies to “respect their communities freedom of association regardless of where they operate and strive to always adhere to stricter standards.”
