Hudson’s Bay recently announced plans to cut 200 corporate jobs. This decision, with an effective date of April 4, is the latest move in their long-term restructuring plans. The layoffs reportedly impact employees employed in corporate positions at the firm’s head workplace in Toronto, Ontario. Hudson’s Bay sustains a workforce of 9,364 people.
That said, the company is in the midst of major structural upheaval, including most of the company’s bricks-and-mortar retail locations being liquidated. Of the 80 current Hudson’s Bay stores, 13 Saks Off 5th outlets, and three Saks Fifth Avenue stores, just six locations will remain. The remainder will shutter their doors permanently. The liquidation process started on March 24 when Hudson’s Bay Company sought creditor protection.
Reacting to the restructuring announcement, Unifor national president Lana Payne said it would have a devastating effect on workers.
“This is corporate greed at its worst and shows how fundamentally unfair this process is for the very workers who kept this company going.” – Unifor national president Lana Payne
Hudson’s Bay’s now precarious position is exacerbated by heavy liabilities for its pension and benefits plans. The company’s defined benefit pension plan now has more than 21,000 members. It features former staff from animators who created Simpsons, Zellers, and Kmart Canada. The supplemental retirement pension plan for executives and senior managers is allegedly millions of dollars in the hole. Of the other benefits funds are experiencing the effects of chronic underfunding.
Even with these financial concerns, Hudson’s Bay has moved forward with a comprehensive key employee retention plan. These bonuses, which add up to a maximum of $3 million, will be awarded to 121 chosen personnel by September 30th. This breaks down as $105,875 in bonuses for 94 store managers, $10,099 for 10 senior management employees, and $12,697 for 17 non-store staff.
The retention plan draws strong skepticism. Employee severance payment and other obligations still unfulfilled. Many are worried that paying out such bonuses is unconscionable and unfair.
“No manager or executive should see a bonus while severance and other legal obligations to workers remain unpaid.” – Unifor national president Lana Payne
Hudson’s Bay spokesperson Tiffany Bourré agreed in a statement that “there are significant challenges involved” in the restructuring process.
“This is a difficult reality of the restructuring process, and we are committed to treating associates impacted by these changes with respect and support.” – Hudson’s Bay spokesperson Tiffany Bourré
For now, as the restructuring process plays out, employees are left to wonder what their future at the company—and specifically within its Concrete division—holds. Kevin Grell, a transportation worker impacted by the FTA’s actions, called attention to the fear that the new penalties have struck into workers.
“You can feel the difference. Everybody’s concerned. Everybody’s scared. Everybody’s uncertain what the future holds.” – Kevin Grell
A restructuring order is anticipated to be detailed in an Ontario Superior Court judge’s ruling on Friday, potentially providing further clarity on Hudson’s Bay’s path forward.
