Amazon (AMZN) faces new legal action after the e-commerce giant closed multiple warehouses and laid off 1,700 workers in Canada.
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The Federation of National Trade Unions, known as CSN, says it plans to petition a court to order Amazon to reopen the seven warehouses it closed and restore the 1,700 jobs it cut in the Canadian province of Quebec. The union estimates the total number of jobs impacted by Amazon’s warehouse closures at 4,500 when subcontractors are included.
Amazon announced in January of this year that it would phase out seven sites in Quebec “following a recent review” of its operations in the province. The union contends that Amazon made the decision to pullout of Quebec after Amazon employees in the region voted to unionize. The e-commerce company said it plans to return to a third-party delivery model to handle packages in that part of Canada.
Union Battles
“What it calls the ‘new business model’ is just an attempt to circumvent its obligations under the Labour Code. The court should recognize that this scheme violates the law and it can then order the reinstatement of Amazon’s workers,” said CSN president Caroline Senneville in a written statement.
Canada isn’t the only place where Amazon faces growing labor pressures. In the U.S., workers at an Amazon warehouse in North Carolina are slated to vote next week on whether to join a union. Amazon employees at a warehouse in Staten Island, New York, formed the company’s first union in 2022, joining the Teamsters. They have yet to secure a contract from the company.
AMZN stock has risen 42% in the last 12 months.
Is AMZN Stock a Buy?
The stock of Amazon has a consensus Strong Buy rating among 41 Wall Street analysts. That rating is based on 40 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $261.21 implies 7.95% upside from current levels.
