Investment firms express concern over Amazon’s Quebec warehouse closures

The investors stressed that Amazon’s actions might infringe on employees' rights to unionize and bargain collectively, both protected under international labor standards. “Failing to do so can expose shareholders to material risks, including regulatory scrutiny, legal challenges, and reputational damage," they noted in the letter.

Christy Hoffman, Secretary General of UNI Global Union, remarked, “The fact that major investors managing billions in assets are sounding the alarm on Amazon’s abrupt closure of its Quebec operations shows how out of step they are with global expectations for responsible business conduct.”

The letter also questioned Amazon's strategic reasoning for the warehouse closures, especially since the company had recently expanded its Quebec operations. Investors expressed concern over Amazon opting for third-party logistics providers, contrasting its usual emphasis on managing warehouse operations directly.

Kiran Aziz, Head of Responsible Investments at KLP, commented on freedom of association: “KLP expects our portfolio companies to respect their commitments to freedom of association regardless of where they operate.”

Further complicating matters, the Canadian federal government is re-evaluating its contractual relationships with Amazon following the closures. The Confédération des syndicats nationaux (CSN) has filed a lawsuit alleging breaches of Quebec’s Labor Code, accompanied by media reports of consumer dissatisfaction.

Amazon's labor practices also faced scrutiny at the 2024 Annual General Meeting, where 37 percent of independent investors backed a proposal for a third-party assessment of the company’s compliance with workers’ rights.

While Amazon's strategy in Quebec has stirred debate, union activities continue elsewhere in Canada. Unifor Local 114, for instance, has rallied workers at an Amazon warehouse in Delta, BC, asking for automatic recognition of the union due to alleged unfair anti-union efforts by Amazon.

Anders Schelde, CIO of AkademikerPension, underscored the significance of unions, stating, “Respecting them is essential to building healthier, more sustainable companies over the long term.”

Investors are urging Amazon to resolve the dispute with Canadian authorities and provide remedies to those affected. They also recommend an independent review of Amazon’s adherence to its labor commitments. “We invite Amazon to demonstrate its commitment to respecting fundamental labour rights," the letter concludes.