Hudson's Bay managers will get up to $3 million in bonuses, but workers get no severance
CBC
The beleaguered Hudson's Bay Co., which plans to close most of its 96 stores by the end of June, will pay up to $3 million total in retention bonuses to 121 managers and executives — but will not pay severance to its more than 9,300 workers, most of whom will soon lose their jobs.
The news is not going over well with some labour activists and workers.
"That is incredibly egregious," said Canadian Labour Congress president Bea Bruske. "They need to go back and actually make sure all of their workers get some of that $3 million."
Kevin Grell, who works at a Bay online distribution site in Toronto, was dismayed when he learned about the bonus payments from CBC News.
"My emotions are taking over right now," said Grell, who worries he may soon be out of a job.
Asked for his reaction to the bonuses, he said, "If I was to answer that, I may get in trouble."
After collecting his thoughts, Grell added, "It's unbelievable. It's a kick in the ass."
Earlier this month, the iconic department store was granted creditor protection as it attempts to restructure to stay afloat. Liquidation sales started on Monday at all but six of its Bay and Saks-branded locations.
According to documents filed in the Ontario Superior Court of Justice, cash-strapped Hudson's Bay will provide up to $3 million to 94 store managers, and 27 non-store staff. Ten non-store "senior leadership" staff stand to get the biggest bonuses, sharing up to $1,087,750 of the earmarked fund.
(The court documents value the bonuses at $2.7 million but say the total is "not to exceed $3 million.")
The bonuses will serve as incentives to the staff "whose continued service will be critical to the success of any wind-down or restructuring" of the company, say court documents.
Employment lawyer Adrian Ishak says paying retention bonuses is common practice when indebted companies go bankrupt or restructure.
"In cold and unfeeling terms, it makes logical economic sense," said Ishak, who is with the Piccolo Heath law firm in Toronto.
"You need to be able to retain your top people who are going to be designing, and implementing the strategy, and the plan to reorganize the business."
