Hudson’s Bay’s managers will receive up to $ 3 million in bonuses, but workers do not get any end of interruption
The Hudson’s Bay Co. besieged, which plans to close most of its 96 stores by the end of June, will pay up to $ 3 million in loyalty bonuses to 121 managers and managers – but will not pay the separation to its over 9,300 workers, most of whom soon loses the work.
The news is not going well with some activists and work workers.
“This is incredibly striking,” said the president of the Canadian Labor Congress Bea Bruske. “They have to go back and actually make sure that all their workers get a little $ 3 million.”
Kevin Grell, who works on a Bay online distribution site in Toronto, was dismayed when he learned about bonus payments from CBC News.
“My emotions are taking over right now,” said Goll, who fears that it could soon be out of work.
He asked his reaction to the bonuses, he said: “If I had to answer, I could get into trouble.”
After collecting his thoughts, Grell added: “It’s incredible. It’s a kick in the ass.”
At the beginning of this month, the iconic department store was granted the protection of the creditor while trying to renovate to remain afloat. Liquidation sales started on Monday, except six of its places in bay and with Saks brand.
According to the documents filed in the Superior Court of Justice of Ontario, Hudson’s Bay shorts will provide up to $ 3 million to 94 shop managers and 27 non -store employees. Ten staff “senior leadership” non -stator are to obtain the largest bonuses, sharing up to $ 1,087,750 of the intended fund.
(The documents of the Court appreciate bonuses to $ 2.7 million but say that the total is “not exceeds $ 3 million”.
The bonuses will act as incentives to the staff “whose continuous service will be fundamental for the success of any reduction or renovation” of the company, affirm the court documents. They also say that the staff will receive their payments on 30 September or on a previous date if “the liquidation is completed and the services are no longer requested”.
The work lawyer Adrian Ishak says that the conservation bonuses paid is a common practice when the undue societies are failure or restructure.
“In cold and insensitive terms, it has a logical economic sense,” said Ishak, who is with Piccolo Heath law firm in Toronto.
“You must be able to preserve your best people who will design and implement the strategy and the plan to reorganize the business.”
Currently, Hudson’s Bay is still trying to find a renovation solution.
Financial assistance for workers
Hudson’s Bay did not answer a question about the conservation bonuses. But the spokesperson Tiffany Bourré confirmed to CBC News that the retailer will not pay the dismissed workers.
In cases of bankruptcy and controlled administration, short -handed companies can opt for not paying the process, forcing workers to submit credit requests as unsecured creditors, which will probably involve cents on the dollar.
Bourré says that workers’ pensions should be safe and that they could receive certain financial support through Canada Salary wages protection programA federal program that provides financial assistance to workers when companies do not fail or are in controlled administration.
Buyers are climbing to collect Hudson’s Bay’s memorabilia after the company has won the approval to start liquidation sales, except six stores next week. The flagship store in the center of Toronto is among the survivors.
But the lawyer Andrew Hatnay, who represents a number of employees of Hudson’s Bay, says that the workers will not be able to request assistance until they have all been fired, that months could pass.
He says that the absence of severance payments – that act as a security network – has left workers in difficulty.
“They are angry,” said Hatnay. “They don’t want to lose their jobs in a difficult economy.”
Grell, 61, is an employee of the bay for more than eight years. He says he has already started looking for another job, but he hasn’t had luck.
“It’s overwhelming. I also had nights in which I wake up in the middle of the night with concern,” he said.
In normal circumstances, The Ontario requires Employers pay the dismissed workers who equal to at least one week of salary for each year of work, up to a maximum of 26 weeks. The rules may vary in other provinces.
Grell says that losing the firm will make things more difficult for workers.
“That (money) would have made a long way. This would have helped with bills, rent, food,” he said. “Many people live Paycheque for Paycheque.”
CBC News tried to interview several other bay employees, but they refused.
Grell says that many workers are afraid to speak publicly, because they have signed an agreement of non -disclosure when they were hired.
Hudson’s Bay did not answer a question about workers who sign these agreements.
Legislation to protect well -being?
Even Sears Canada had to face criticisms when Covered by CBC News That company, which presented for bankruptcy protection in 2017, did not pay any end of interruption to its 12,000 workers, but paid large conservation bonuses to 43 managers and senior manager.
Many Sears employees Even finished with reduced pensions.
The resulting repercussions led to the Federal legislation in 2023 which improves the protections for workers with pension plans to defined benefits if their employer becomes insolvent. Legislation has effect in 2027.
According to the transcriptions of the debate of the Chamber of Municipalities in 2022, some parliamentarians have pushed the severance pay to the legislation, but have not been successful.
“It was incredibly disappointing and frustrating,” said Bruske, with the Canadian Labor Congress. “We must also strengthen things like Severance’s salary because when you are out of work in the market we have today, in a crisis of convenience, in a housing crisis, workers have decisions that are difficult to make.”
He says with what is going on to Hudson’s Bay, workers’ rights must be an electoral problem.
“Now is the time for all workers to … ask the candidates who are coming to their door,” What are you doing on workers’ protections? What is your position on things like Severance’s payment? “
However, Ishak, the lawyer, claims that the protection of the end of workers in cases of bankruptcy has a price.
Currently in bankruptcy procedures, guaranteed creditors, such as banks, are the first in line to receive the money that is due. He says that if workers had priority on banks, he could discourage them from the financing of new initiatives.
“It will be a huge disincentive for those companies to advance loans. And without such loans, companies cannot thrive.”
