Jan 22 (Reuters) - E-commerce giant Amazon.com ( AMZN )

is exiting its operations in the Canadian province of Quebec,

leading to the loss of about 1,700 full-time jobs, the company

said on Wednesday, prompting Ottawa to express its unhappiness.

The online retailer will phase out operations across seven

sites in the province - the only location in Canada with

unionized Amazon ( AMZN ) employees - over the next two months.

It will return to a third-party delivery model, relying on

local small businesses, similar to its approach before 2020.

"Following a recent review of our Quebec operations, we've

seen that returning to a third-party delivery model ... will

allow us to provide even more savings to our customers," Amazon ( AMZN )

spokesperson Barbara Agrait said.

In May, Amazon ( AMZN ) warehouse workers represented by the Canadian

labor union Confédération des syndicats nationaux (CSN)

unionized, citing dissatisfaction with wages and inadequate

health and safety measures at the facilities.

Federal Innovation Minister Francois-Philippe Champagne said

he had spoken to the head of Amazon Canada and expressed the

government's dismay and frustration.

"This is not the way business is done in Canada," he

said in a post on X.

The CSN, which represents 300 workers at the site north of

Montreal, said the decision made no business sense and directly

targets the company's only unionized warehouse in Canada.

The workers were in the process of negotiating their first

collective agreement.

"There is no doubt that the closings announced today are

part of an anti-union campaign against CSN and Amazon ( AMZN )

employees," said CSN president Caroline Senneville in a

French-language statement.

"This move contradicts the provisions of the Quebec Labour

Code, which we will strongly oppose," Senneville added, without

providing immediate specifics.

The move will also affect approximately 250 seasonal

workers. Amazon ( AMZN ) will offer affected employees a package

including up to 14 weeks' pay and "transitional benefits such as

job placement resources," Agrait added.