Hudson’s Bay has informed employees that it will eliminate commissions for staff in the cosmetics departments and those earning commissions on big-ticket items like appliances starting April 20, according to a union press release.
Unifor, which represents 595 Hudson’s Bay employees, said these workers will be paid a base salary instead, with HBC citing lower product inventory and declining sales as the reason for the change.
“This is a blatant violation of our members’ collective agreements and a cruel blow especially since managers have been rewarded with bonuses,” said Unifor national president Lana Payne in a press release Tuesday morning, adding that the union has filed a grievance against the move.
“We’re talking about workers who’ve spent years working for this company, and now they’re being denied income they’ve rightfully earned and are entitled to,” Payne continued.
Hudson’s Bay did not immediately respond to a request for comment.
More than 9,000 jobs are on the chopping block since the centuries-old retail chain started liquidating all but six of its 96 stores under protection from the Companies’ Creditors Arrangement Act on March 24.
The court has granted Canada’s oldest company permission to give $3-million worth of bonuses to some 120 managers and executives “whose continued service will be critical to the success of any wind-down or restructuring” — while the retailer confirmed to the Star that no severance will be paid when other employees are laid off.
“This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply,” said Unifor Ontario regional director Samia Hashi in the press release. “Workers are being kept in the dark and their pay is being cut without negotiation.”
Hashi said workers should be the top priority during corporate insolvency and bankruptcy and called for stronger legal protections and enforceable penalties for companies that violate their rights.
On April 2, Hudson’s Bay issued the first round of termination notices to about 179 corporate employees, followed by an additional 93 notices six days later, according to a court document.
The beleaguered retailer will return to court on Thursday morning to apply for an order appointing Ursel Phillips Fellows Hopkinson as the counsel to represent all current and former employees who are non-unionized.
While Hudson’s Bay looks to seek a restructuring solution that will save six of its stores and some employees, the company “anticipates further head-count reductions as a result of store closures over the coming weeks,” the court document read.
