Union demands the Bay pay employees in Canada severance | Daily Hive

Union demands the Bay pay workers severance as liquidation looms

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The union representing the Bay employees in Canada is calling on the company to prioritize workers as it continues its restructuring process.

Canadian Labour Congress (CLC) says the Hudson’s Bay Company’s (HBC) financial troubles shouldn’t “come at the cost of workers’ livelihoods.”

The Canadian retail institution employs around 9,400 people, including 647 who are unionized.

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“We demand that HBC honour its commitments — wages, benefits, and severance must be paid. No backroom deals, no vague promises — workers deserve full transparency,” reads a statement from the CLC on Tuesday.

North America’s oldest company filed for creditor protection under the federal Companies’ Creditors Arrangement Act (CCAA) on March 7 and received approval from the Ontario Superior Court of Justice on the same day.

Last Friday, the Bay announced that full liquidation could begin this week. The latest court documents stated that the company intends to conclude its liquidation process by June 15, 2025, at which point its store locations would also close.

The CLC demands that the Bay be transparent about its store closures, layoffs, and severance protections.

It also calls on the federal government to confirm that workers’ EI benefits “won’t be clawed back” due to the severance and termination benefits HBC owes employees.

“These commitments are not merely legal obligations but a matter of fundamental fairness and respect for the dedicated employees who have contributed to the company’s success,” explained the CLC.

“The well-being of thousands of workers and their families hangs in the balance. We will not stand by as corporate interests trample on the people who built this company,” it added.

Daily Hive has reached out to HBC for comment.

The Bay employee rights as store closures loom

Law firm Samfiru Tumarkin LLP shared a guide on what options both unionized and non-unionized HBC employees have in times of bankruptcy or liquidation.

According to the law firm, in a typical layoff, non-unionized employees are entitled to severance, which can be up to 24 months’ pay, depending on age, position and length of service.

However, it says Hudson’s Bay’s CCAA filing and expected liquidation change things.

“Employees will likely not receive their full severance, and many won’t receive anything beyond what is available through government programs,” explained the law firm.

That’s because banks and landlords are first in line for money recovered from the sale of company assets, and employees are usually last.

Additionally, the law firm says the CCAA protection for HBC includes a “stay of proceedings.” This prevents workers from suing the company for unpaid wages, severance pay, termination pay, or other forms of compensation during the restructuring process.

Since you can’t take any legal action while the retailer is under CCAA protection, the law firm advises HBC employees to apply for the Wage Earner Protection Program (WEPP), which covers unpaid wages, vacation pay and termination pay (up to a limit).

The Bay currently operates 80 full-line stores in Canada, three Saks Fifth Avenue stores and 13 Saks OFF 5th stores operating under licence agreements.

This includes 32 stores in Ontario, 16 in British Columbia, 13 in Alberta, 13 in Quebec, two in Manitoba, two in Nova Scotia, and two in Saskatchewan. In addition, there are two Saks Fifth Avenue stores in Ontario and one in Alberta. There are seven Saks OFF 5th locations in Ontario, two in British Columbia, two in Alberta, one in Quebec, and one in Manitoba.

Hudson’s Bay also leases four distribution centres, including one in British Columbia and three in Ontario.

The liquidation is still pending court approval after the March 17 hearing.

In the meantime, you can learn more about what the liquidation process will look like and what happens to the Bay rewards and gift cards.

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