Nearly 70 investors representing more than USD 2 Trillion in combined assets under management and advice, including Storebrand, Achmea, Office of the Illinois State Treasurers, and NEI investments among others, have expressed serious concerns over Amazon’s decision to close all seven of its warehouses in Quebec amid active unionization and collective bargaining efforts.
In a letter addressed to Amazon’s leadership, the investors highlight that the abrupt closure of Amazon’s Quebec operations—impacting nearly 5,000 workers, raises significant legal, reputational, and operational risks for the company and its shareholders. The move follows a series of labour-related controversies, including a fine from Quebec’s Labour Tribunal for union interference and the dismissal of Amazon’s constitutional challenge against Quebec’s labour laws.
“Amazon’s interference with unionization efforts is 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.” Sarah Couturier-Tanoh, Director of Shareholder Advocacy, SHARE
The investors argue that Amazon’s actions appear to undermine employees’ rights to freedom of association and collective bargaining, as protected under international labour standards. “We consider these fundamental rights that all companies have an obligation to respect,” the letter states. “Failing to do so can expose shareholders to material risks, including regulatory scrutiny, legal challenges, and reputational damage.
“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,” said Christy Hoffman, Secretary General of UNI Global Union.
“When companies retaliate against collective bargaining with mass layoffs and operational shutdowns, it’s not just workers who pay the price—shareholders, customers, and communities all bear the consequences.”
The letter also questions the company’s strategic rationale for the closures, which come shortly after Amazon expanded operations and investments in Quebec. Investors are particularly concerned that Amazon’s decision to revert to third-party operators for logistics services is a departure from its preferred global model, which typically emphasizes direct control over warehouse operations for efficiency and productivity gains.
Acknowledged as a fundamental right in international treaties, conventions, and declarations, freedom of association is essential in enabling workers to protect their other human and labour rights, including achieving stable real wage growth. This further contributes to sustainable economic growth and stable company earnings. KLP expects our portfolio companies to respect their commitments to freedom of association regardless of where they operate and strive to always adhere to stricter standards. The situation in Quebec is particularly concerning due to its significant impact on workers, the region, and the company, which faces increased scrutiny from investors, unions, media, and the Canadian government. – Kiran Aziz, Head of Responsible Investments at KLP.
Adding to the complexity of the situation, the investors note that the Canadian federal government has announced a review of its contractual relationships with Amazon in light of the closures. Meanwhile, the Confédération des syndicats nationaux (CSN) has filed a lawsuit alleging violations of Quebec’s Labour Code, and media reports suggest growing consumer backlash.
At Amazon’s 2024 Annual General Meeting, 37 per cent of independent investors supported a proposal calling for a third-party assessment of Amazon’s adherence to workers’ rights commitments. The investors argue that the Quebec closures further amplify concerns about the company’s labour practices.
While Amazon has exited Quebec due to its anti-union tactics, efforts in British Columbia highlight that the issue remains unresolved in Canada. Unifor Local 114 has been organizing workers at Amazon’s Delta, B.C., warehouse since June 2023 and recently asked the BC Labour Relations Board to go ahead with automatic certification, arguing that Amazon’s efforts to block unionization were so unfair that a vote should not be required. The union claims Amazon actively sought to dilute pro-union sentiment by hiring a large number of seasonal workers just as Unifor was nearing the required threshold of support. This situation underscores the ongoing challenges Amazon faces in Canada and suggests that shutting down operations in response to unionization efforts is not a viable long-term strategy. Instead, such actions may increase legal risks and fuel consumer backlash at a time when Canadian sentiment toward U.S. corporations is already under pressure.
“At AkademikerPension, we engage because we believe that freedom of association and the right to organize are fundamental rights—rights that are increasingly under pressure. Respecting them is essential to building healthier, more sustainable companies over the long term.”Anders Schelde, CIO, AkademikerPension.
In their letter, the investors urge Amazon to engage in good faith with the federal government and CSN to resolve the matter and provide remedies for affected workers. They also call on the company’s Board of Directors to commission an independent third-party review of Amazon’s adherence to its stated commitments on workers’ rights.
“We invite Amazon to demonstrate its commitment to respecting fundamental labour rights by engaging constructively with stakeholders and ensuring its business decisions align with its publicly stated principles,” the letter concludes.