Hudson's Bay accused of illegally ending workers' commissions
Canada’s largest union is accusing Hudson’s Bay Company of violating the rights of its workers as it winds down operations.
Unifor, which represents 595 Hudson’s Bay employees at stores in Windsor, Kitchener, and Toronto’s Sherway Gardens, as well as workers at the company’s e-commerce warehouse, said that the bankrupt department store retailer informed its workers that commission-based pay will be eliminated as of April 20 for members working in cosmetics departments. It also will be eliminated for those who earn commission on big-ticket items such as appliances.
These workers will be shifted to a base salary only, with Hudson’s Bay citing reduced product inventory and sales as the reason for the decision.
Unifor has filed a grievance against the move, claiming that it is in violation of workers' legally-binding collective agreement rights. The union says it is calling on Hudson’s Bay to honor all aspects of its collective agreements, including severance and commissions, ensure full transparency with workers, and immediately reverse its decision to eliminate commissions.
"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. "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."
[READ MORE: Hudson’s Bay wants to hold auction for its art and ‘historical’ artifacts]
Hudson’s Bay filed for creditor protection under Canada’s Companies’ Creditors Arrangement Act in March, citing, among other things, trade tensions between Canada and the United States and a drop in downtown traffic. It has been holding liquidation sales at the majority of its stores.
"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. "Workers are being kept in the dark and their pay is being cut without negotiation. This is exactly why we need stronger legislative protections and enforceable penalties for companies that violate workers' rights. Workers should be priority one during corporate insolvency and bankruptcy."
Hudson’s Bay Co. operates 80 stores under the Hudson’s Bay banner as well as an e-commerce site. Through a licensing agreement, it also operates three Saks Fifth Avenue and 13 Saks Off 5th stores in Canada.
Unifor is Canada’s largest union in the private sector, representing 320,000 workers in every major area of the economy.
