AMAZON HQ WOULD BE GREAT
But language law a concern: Cooper
Seattle-based online retailer Amazon has announced that it is on the hunt for a second North American headquarters. This has touched off a bidding war, with a number of cities in the United States already signalling that they intend to throw their hat in the ring. Among the Canadian cities apparently vying to become Amazon’s HQ2 are Toronto, Vancouver, Calgary and Winnipeg. Mayor Denis Coderre took to Twitter last week to announce Montreal will launch a campaign.
Landing Amazon’s HQ2 would be a coup for any North American city. The company says it will invest approximately US $5 billion, and hire up to 50,000 new full-time employees over the next 15 years who would be paid an average of US$100,000 a year.
Potential Amazon HQ2 must meet a fairly specific set of criteria. The good news is that Montreal checks most of the boxes.
A prime location, access to mass transit and proximity to an international airport? Check. A diverse, educated population of more than one million? We’ve got it. A tech hub with a constellation of good universities? Absolutely. Land to accommodate up to 50,000 workers? Yep. Quality of life and the amenities that would attract the kinds of workers Amazon is looking for? Yes, again: we have reasonable housing costs, great restaurants, high walkability (orange cones notwithstanding) and short commute times. Add in our growing capacity for Artificial Intelligence, aerospace engineering and a thriving entrepreneurial culture, and we are off to a flying start.
But for Montreal to mount a credible bid as a serious contender for Amazon’s new corporate headquarters, there are a few questions that must be addressed.
First, it’s expected that Amazon will demand significant tax breaks and other incentives to set up shop. In the past, the company has faced serious criticism for the tax breaks it receives, and for paying its warehouse workers half the wages of traditional manufacturing jobs. The behemoth that gobbled up Whole Foods, well, whole, is also notoriously anti-union and anti-regulation.
Question: Would this company fit well within Quebec’s business and political cultures? What kind of impact would its presence have on small businesses and local start ups?
Second, there are — as always — Quebec’s language laws to consider.
As a business in Quebec, Amazon would be subject to the Charter of the French Language and would be required to register with the Office québécois de la langue française (OQLF) and to operate in French. There are financial penalties for noncompliance. Would that be a deal-breaker for Amazon?
If so, would the province be willing to stir a political hornet’s nest ahead of a provincial election year and state it is willing to exempt the company from Bill 101?
And if not, can Montreal — off the top — assure Amazon that we have a qualified pool of 50,000 workers skilled in tech, software engineering, legal and accounting expertise who could operate in French in Quebec as well as communicate with the rest of the company in English?
Last year, Municipal Affairs Minister Martin Coiteux tabled legislation that officially recognizes Montreal as the metropolis of Quebec. Bill 121 increases the autonomy and widens the scope of municipal powers previously overseen by provincial government ministries. The bill gives Montreal increased authority over issues related to immigrant integration, social housing, combating homelessness and control over heritage sites, but not over language laws.
None of this means that Montreal shouldn’t compete to become Amazon’s HQ2. The city has much to offer. It’s also Quebec’s engine of economic growth, and landing Amazon’s HQ2 would be a boon for the province as a whole. But before we go throwing money at this bid, let’s be proactive and think it through.
Best to do it quickly, though. The deadline for applications is Oct. 19. Amazon will announce its final decision next year.