Hudson's Bay Cuts Commissions for Workers

In a shocking move, Hudson's Bay, Canada's oldest department store, has decided to eliminate commission pay for its employees just as it liquidates most of its stores. This decision was made public by Unifor, Canada's largest private sector union, which represents many of the affected workers.

Changes Effective Immediately

As of April 20, employees in cosmetics and those making sales on high-ticket items like appliances will no longer receive commissions. Instead, they will be shifted to a base salary model. This change was framed by Hudson's Bay as a necessary adjustment amidst ongoing restructuring under the Companies’ Creditors Arrangement Act.

Union Leaders Outraged

Unifor President Lana Payne condemned the move, calling it a "blatant violation" of collective agreements. "This is a cruel blow to our members, especially when managers are still being rewarded with bonuses," Payne stated. Employees who have dedicated years to the company now face financial uncertainty without the income they rightfully earned.

Uncertain Future for Employees

Approximately 595 Hudson's Bay employees in Ontario are facing a precarious situation. With the chain planning to close all but six of its stores, many workers are understandably concerned about their future. Recent court documents reveal that 179 corporate staff were recently laid off, with more cuts anticipated.

Liquidation Sales and Future Plans

Hudson's Bay will complete liquidation sales for its stores by June 15, vacating properties by the end of the month. Additionally, a proposed "hardship fund" aims to assist current and former employees facing financial difficulties due to the loss of benefits. However, terminated staff will only receive accrued vacation pay, not severance.

Key Employee Retention Strategy

Despite the layoffs, the court has approved a key employee retention plan that will see 121 staff, including store managers and senior management, receiving a collective $3 million. While Unifor has criticized these payments as "bonuses," such compensation is standard in creditor protection scenarios to maintain leadership during a critical time.

In Search of a Buyer

Hudson's Bay is actively seeking a buyer or investor to help salvage its remaining business. Upcoming court proceedings will include a request to auction off 1,700 pieces of art and over 2,700 artifacts. This auction could play a vital role in the company's financial recovery as it navigates these turbulent waters.