Opinion: Hudson's Bay could tarnish its legacy by handing out exec bonuses

As Canada’s oldest company, Hudson’s Bay holds an iconic status within the country’s nation’s identity.

Given its long history and cultural prominence, the demise of the Hudson’s Bay Company (HBC) is eliciting strong emotional responses from Canadians, ranging from nostalgia for those remembering childhood shopping tips to disappointment over the company’s decline and a potentially profound alteration of the Canadian retail landscape. 

When the retailer filed for creditor protection in March, social media platforms were flooded with fondness for The Bay, a store that is older than Canada itself.

Hudson’s Bay’s downtown Vancouver flagship store. (AlbertArt/Shutterstock)

Its store closures also represent significant repercussions for over 9,000 employees who are facing job loss. How the company manages employment termination for thousands has given way to another strong emotion amongst the Canadian public: anger. 

HBC is awarding $3 million in bonuses to executives and managers while denying severance pay to most of its departing workforce, men and women who work outside the corporate boardroom. 

This decision, although potentially legal within the framework of bankruptcy proceedings, has ignited public outrage and risks severely damaging HBC’s reputation. The allocation of limited resources during this critical period underscores the ethical dilemmas inherent in corporate failures and the importance of equitable treatment for all levels of employees.

This contrast between rewarding management and leaving departing workers without severance has generated a narrative of injustice and potential corporate disregard for the well-being of its broader employee base. The disparity will likely result in demands for a transparent and justifiable explanation from the company.

As a household name, Canadians may think of HBC’s signature red, yellow, green, and indigo stripes on their classic fuzzy blanket and other gear. Others may remember the glory of the 2010 Olympic Games, hosted in Vancouver, where athletes wore The Bay Olympic wear and stores sold out of the infamous red maple leaf mittens. 

Now that labour relations and equality are finding their way to centre stage, the darker parts of this Canadian retailer’s history may come to mind, further tarnishing the reputation of the brand. 

The early economic success of Hudson’s Bay built on the fur trade and its intricate relationship with Indigenous hunters and trappers. A reliance on Indigenous labour and resources has enduring implications for how the company’s history is interpreted in light of modern-day reconciliation efforts.

Although there were elements of cooperation in the pursuit of trade, instances of economic exploitation within the broader context of European colonization profoundly impacted Indigenous societies.

ValeStock/Shutterstock

The Hudson’s Bay Company’s historical practices, particularly in its early fur trading days, operated largely without the legal protections that exist today. Employment was primarily governed by contractual agreements that often reflected a power imbalance between the company and its employees. Working conditions were frequently harsh and potentially exploitative, especially for those in lower ranks.

The current decision by HBC to deny severance to its departing workforce stands in stark contrast to principles of fairness and compensation for long-term service. The ethical implications of prioritizing bonuses for a select group while leaving thousands without severance not only shine a light on a current injustice but also draw attention to injustices that may have faded from the headlines but are still significant to those who are familiar and connected with the history of the company’s beginning, primarily Indigenous Peoples.

A wave of negative public reaction, particularly across social media platforms, is beginning, and a prevailing sentiment is one of corporate greed. This negative sentiment has the potential to spread rapidly and solidify into lasting damage to the company’s image and how Canadians remember the brand.

The Hudson’s Bay Company may be deeply woven into the fabric of Canadian history, but corporate decisions in 2025 are leading the way to a sombre conclusion. The Bay hung on during the emergence of web-based shopping and excelled with Canada’s Olympic pride, but it may be ethical decisions around fairness and equality that conclude its last chapter in the minds of Canadians.

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