Hudson's Bay managers will get up to $3 million in bonuses, but workers get no severance

Sophia Harris · CBC News

· Posted: Mar 26, 2025 4:00 AM EDT | Last Updated: 9 minutes ago

The beleaguered Hudson's Bay Co., which plans to adjacent astir of its 96 stores by the extremity of June, volition wage up to $3 cardinal full successful retention bonuses to 121 managers and executives — but volition not wage severance to its much than 9,300 workers, astir of whom volition soon suffer their jobs. 

The quality is not going implicit good with immoderate labour activists and workers. 

"That is incredibly egregious," said Canadian Labour Congress president Bea Bruske. "They request to spell backmost and really marque definite each of their workers get immoderate of that $3 million."

Kevin Grell, who works astatine a Bay online organisation tract successful Toronto, was dismayed erstwhile helium learned astir the bonus payments from CBC News.

"My emotions are taking implicit close now," said Grell, who worries helium whitethorn soon beryllium retired of a job. 

Asked for his absorption to the bonuses, helium said, "If I was to reply that, I whitethorn get successful trouble."

After collecting his thoughts, Grell added, "It's unbelievable. It's a footwear successful the ass."

Earlier this month, the iconic section store was granted creditor extortion arsenic it attempts to restructure to enactment afloat. Liquidation income started connected Monday astatine each but six of its Bay and Saks-branded locations.

According to documents filed successful the Ontario Superior Court of Justice, cash-strapped Hudson's Bay will supply up to $3 cardinal to 94 store managers, and 27 non-store staff. Ten non-store "senior leadership" unit basal to get the biggest bonuses, sharing up to $1,087,750 of the earmarked fund. 

(The tribunal documents worth the bonuses astatine $2.7 million but accidental the full is "not to transcend $3 million.")

The bonuses volition service arsenic incentives to the unit "whose continued work volition beryllium captious to the occurrence of immoderate wind-down oregon restructuring" of the company, accidental tribunal documents. 

Employment lawyer Adrian Ishak says paying retention bonuses is communal signifier erstwhile indebted companies spell bankrupt oregon restructure.

"In acold and unfeeling terms, it makes logical economical sense," said Ishak, who is with the Piccolo Heath instrumentality steadfast successful Toronto. 

"You request to beryllium capable to clasp your apical radical who are going to beryllium designing, and implementing the strategy, and the program to reorganize the business."

Currently, Hudson's Bay is inactive trying to find a restructuring solution.

Financial assistance for workers

Hudson's Bay did not reply a question astir the retention bonuses. But spokesperson Tiffany Bourré confirmed to CBC News that the retailer won't wage laid-off workers immoderate severance. 

In bankruptcy and receivership cases, cash-strapped companies tin opt not to wage severance, forcing laid-off workers to marque claims arsenic unsecured creditors — which volition likely result in pennies connected the dollar. 

Bourré says workers' pensions should beryllium safe, and that they whitethorn person immoderate fiscal enactment done Canada's Wage Earner Protection Program, a national programme that provides fiscal assistance to workers erstwhile companies spell bankrupt oregon are successful receivership. 

WATCH | The Bay beings liquidation sales:

But lawyer Andrew Hatnay, who represents a fig of Hudson's Bay employees, says workers won't beryllium capable to use for assistance until they person each been laid off, which could beryllium months from now. 

He says the lack of severance payments — which service arsenic a information nett — has near workers distressed.

"They're upset," Hatnay said. "They don't privation to suffer their jobs successful a hard economy."

Grell, 61, has been a Bay worker for much than eight years. He says helium has already started searching for different job, but has had nary luck. 

"It's overwhelming. I've adjacent had nights wherever I aftermath up successful the mediate of the nighttime with worry," helium said. 

Under mean circumstances, Ontario requires employers wage laid-off workers severance equalling astatine slightest 1 week's wage for each twelvemonth of employment, up to a maximum of 26 weeks. The rules tin alteration successful different provinces. 

Grell says losing retired connected severance volition marque things much hard for workers.

"That [money] would person gone a agelong way. That would person helped with the bills, the rent, the food," helium said. "A batch of radical are surviving paycheque to paycheque."

CBC News tried to interrogation respective different Bay employees, but they declined. 

Grell says galore workers are acrophobic to talk publicly, due to the fact that they signed a non-disclosure statement erstwhile they were hired.

Hudson's Bay did not respond to a question astir workers signing specified agreements. 

Legislation to support severance?

Sears Canada besides faced disapproval erstwhile CBC News revealed that company, which filed for bankruptcy extortion successful 2017, paid nary severance to its 12,000 workers, but did wage large retention bonuses to 43 executives and elder managers. 

Many Sears employees also coiled up with reduced pensions. 

The resulting backlash led to national authorities successful 2023 which improves protections for workers with defined payment pension plans if their leader becomes insolvent. The authorities takes effect successful 2027. 

According to House of Commons statement transcripts successful 2022, immoderate MPs pushed for severance protections to beryllium included successful the legislation, but they were unsuccessful. 

"It was incredibly disappointing and frustrating," said Bruske, with the Canadian Labour Congress. "We request to besides fortify things similar severance wage due to the fact that erstwhile you are retired of a occupation successful the marketplace that we person today, successful an affordability crisis, successful a lodging crisis, workers person pugnacious decisions to make."

She says with what's going connected astatine Hudson's Bay, workers' rights request to beryllium an predetermination issue. 

"Now is the clip for each workers to… inquire the candidates who are coming to their door, 'What are you doing connected idiosyncratic protections? What is your presumption connected things similar severance pay?'"

However, Ishak, the lawyer, argues protecting workers' severance successful bankruptcy cases comes astatine a price.

Currently successful bankruptcy proceedings, secured creditors, similar banks, are archetypal successful enactment to get paid the wealth they're owed. He says if workers took precedence implicit banks, it could discourage them from financing caller ventures. 

"It volition beryllium a immense disincentive for those companies to beforehand loans. And without those loans, companies can't flourish."