Hudson’s Bay workers denied commission pay during liquidation sales

Hudson’s Bay Co. has made the decision to stop paying commission to hundreds of cosmeticians and fragrance advisers during its liquidation sales, effectively reducing their salaries. These workers, who are also known as beauty advisers, typically earn commission on products sold in addition to their base salary.

The decision to eliminate commission pay was communicated to the beauty advisers just 12 days in advance of the changes taking effect on April 20, according to a letter issued by the company and seen by CBC News. In the letter, Hudson’s Bay stated, “Please note that this is a decision we have not taken lightly.”

Unifor, the union representing many beauty advisers in Ontario, has filed a grievance against Hudson’s Bay, arguing that the commission cut violates the collective agreement of its members. Unifor’s Ontario regional director, Samia Hashi, expressed outrage over the situation, stating, “This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply. Workers are being kept in the dark and their pay is being cut without negotiation.”

Hudson’s Bay, which has been struggling with debt, was granted creditor protection in March in an effort to find a buyer by the end of the month to prevent bankruptcy. Most of the company’s 9,300 employees are expected to lose their jobs once the liquidation sales conclude on June 15 at the majority of its department stores.

Several beauty advisers have expressed distress over the loss of commission pay, noting that it will result in a significant reduction in their take-home pay. One beauty adviser from British Columbia, where employees are not represented by Unifor, shared their concerns about the impact on their livelihood, stating, “It’s just devastating because I don’t know how I’m going to get by.”

Legal experts have raised questions about the abrupt reduction in salaries, highlighting the challenges faced by employees when a company is under creditor protection. Unifor argues that the beauty advisers it represents should not have to wait in line to recoup what they are owed, as commission pay is a part of their contractual agreement.

In addition to the loss of commission pay, Hudson’s Bay employees were recently informed that severance pay will not be provided to laid-off workers. Unifor has criticized the retailer for prioritizing retention bonuses for executives and managers over severance pay for its employees.

As Hudson’s Bay workers grapple with these challenges, calls have been renewed for the federal government to establish stronger protections for employees of insolvent companies. The Canadian Association of Insolvency and Restructuring Professionals has cautioned that workers’ rights must be balanced with the broader impact on the insolvency process.

While the future remains uncertain for Hudson’s Bay employees, efforts are being made to support them during this difficult time. The federal government’s Wage Earner Protection Program offers financial assistance to workers affected by company insolvency, although the amount received may only be a portion of what is owed.

As the situation unfolds, the focus remains on advocating for the rights and well-being of Hudson’s Bay workers who are facing job loss and financial uncertainty.