Hudson’s Bay Co.
The news has not been smooth with some labor activists and workers.
“That was incredibly incredible,” said Bea Bruske, president of the Canadian Labor Congress. “They need to go back and actually make sure all workers get a portion of $3 million.”
Kevin Grell works on the Bay Online Distribution Website in Toronto and was frustrated when he learned about the bonus payment from CBC News.
“My emotions are taking over,” Greer said, worried that he will be in office soon.
When asked for his reaction to the bonus, he said, “I might be in trouble if I want to answer.”
After gathering his own thoughts, Grell added: “It’s incredible. It’s a kick to the butt.”
Earlier this month, the iconic department store was granted creditor protection as it attempted to make a significant position. The liquidation sales were held on Monday, except for the sales of six Bay and Saxophone brands.
Cash-scarce Hudson Bay will provide $3 million to 94 store managers and provide 27 non-store employees, according to documents filed by the Ontario Superior Court. Ten non-store “Senior Leadership” employees will receive the largest bonus, sharing up to $1,087,750 in designated funds.
(The court documents estimate the bonus to $2.7 million, but said the total is “no more than $3 million.”)
The bonuses will provide incentives to staff “continued service is crucial to the success of any rainfall or restructuring of the company,” court documents said.
Employment lawyer Adrian Ishak said it is common to pay retention bonuses when a debt company goes bankrupt or reorganizes.
“It has logical economic significance from a cold and lasting point of view,” said Ishak of Piccolo Heath law firm in Toronto.
“You need to be able to retain plans that will design, implement strategies, and reorganize your business.”
Currently, Hudson Bay is still trying to find a restructuring solution.
Financial aid for workers
Hudson Bay did not answer questions about retaining bonuses. But spokesman Tiffany Bourré confirmed to CBC News that retailers will not pay any severance payments to unemployed workers.
In bankruptcy and takeover cases, cash-strapped companies can choose not to pay severance payments, forcing employees to file claims as unsecured creditors, which could lead to the convenience of the dollar.
Brell said workers’ pensions should be safe and they may get some financial support through Canadian funds Wage Income Protection Plana federal program that provides financial assistance to workers when a company goes bankrupt or is in a takeover status.
Shoppers are scrambling to collect Hudson’s Bay souvenirs after the company has been approved to begin liquidation sales. The flagship store in downtown Toronto is one of the survivors.
But Andrew Hatnay, an attorney representing many Hudson Bay employees, said workers will not be able to apply for aid until they are fired, which could be months later.
He said no severance payments (used as safety nets) bothered workers.
“They were frustrated,” Hartner said. “They don’t want to lose their jobs in a tough economy.”
Grell, 61, has been a Bay employee for more than eight years. He said he had started looking for another job but had no luck.
“It’s overwhelming. I even woke up in the middle of the night and worried,” he said.
Under normal circumstances, Ontario needs Employers pay severance payments for layoffs, and employment requires at least one week’s salary per year, up to 26 weeks. Rules may vary in other provinces.
Losing the severance payment will make it more difficult for workers, Greer said.
“That [money] It will go a long way. “That would have helped with bills, rent, food. A lot of people live in Paycheque,” he said.
CBC News tried to interview several other Bay employees, but they refused.
Greer said many workers were afraid to speak out because they signed undisclosed agreements when they were hired.
Hudson Bay did not answer questions about workers signing such agreements.
Legislation to protect severance?
Sears, Canada, also faces criticism CBC News reveals The company filed for bankruptcy protection in 2017 and did not sever 12,000 workers, but did pay a large amount of retention bonus to 43 executives and senior executives.
Many Sears employees Also injured as pensions drop.
The resulting rebound leads to the federal Legislation in 2023 If the employer is insolvent, protection for workers with a defined benefit pension plan can be improved. The legislation came into effect in 2027.
According to the House of Commons debate report card, some MPs pushed for the inclusion of severance protections into legislation, but they did not succeed.
“It’s incredibly disappointing and frustrating,” Brusk said at the Canadian Labor Conference. “We also need to strengthen things like severance payments because when you exit our market today, workers have tough decisions in the affordability crisis, housing crisis.”
With what happened in Hudson Bay, workers’ rights must be an election issue, she said.
“It’s time for all workers… to be grateful for candidates who come to their home, ‘What are you doing with workers’ protection?
But attorney Ishak believes there is a price to protect workers’ severance payments in bankruptcy cases.
Currently, in bankruptcy lawsuits, secured creditors (such as banks) are the first to queue up to earn the owed. He said that if workers prioritize banks, this could prevent them from funding new businesses.
“The huge inhibitory effect of these companies in promoting loans. Without these loans, companies could not thrive.”
