The union representing the Bay employees in Canada is calling on the company to prioritize workers as it continues its restructuring process.
Canadian Labour Congress (CLC) says the Hudson’s Bay Company (HBC)’s financial troubles shouldn’t “come at the cost of workers’ livelihoods.”
The Canadian retail institution employs around 9,400 people, including 647 who are unionized.
“We demand that HBC honour its commitments — wages, benefits and severance must be paid. No backroom deals, no vague promises — workers deserve full transparency,” reads a statement from the CLC on Tuesday.
North America’s oldest company filed for creditor protection under the federal Companies’ Creditors Arrangement Act (CCAA) on March 7 and received approval from the Ontario Superior Court of Justice on the same day.
Last Friday, the Bay announced that full liquidation could begin this week. The latest court documents stated that the company intends to conclude its liquidation process by June 15, 2025, at which point its store locations would also close.
The CLC demands that the Bay be transparent about its store closures, layoffs and severance protections.
It also calls on the federal government to confirm that workers’ EI benefits “won’t be clawed back” due to the severance and termination benefits HBC owes employees.
“These commitments are not merely legal obligations but a matter of fundamental fairness and respect for the dedicated employees who have contributed to the company’s success,” explained the CLC.
“The well-being of thousands of workers and their families hangs in the balance. We will not stand by as corporate interests trample on the people who built this company,” it added.
HBC has not yet responded to request for comment.
The Bay employee rights as store closures loom
Law firm Samfiru Tumarkin LLP shared a guide on what options both unionized and non-unionized HBC employees have in case of layoffs.
It advises affected employees to take their time to review termination documents and to speak with a lawyer before signing anything.
The law firm also suggests documenting everything and saving copies of termination letters, severance offers and correspondence with your employer.
When it comes to calculating your severance, the law firm recommends using its severance pay calculator.
The Bay currently operates 80 full-line stores in Canada, three Saks Fifth Avenue stores and 13 Saks OFF 5th stores operating under licence agreements.
This includes 32 stores in Ontario, 16 in British Columbia, 13 in Alberta, 13 in Quebec, two in Manitoba, two in Nova Scotia and two in Saskatchewan.
In addition, there are two Saks Fifth Avenue stores in Ontario and one in Alberta. There are seven Saks OFF 5th locations in Ontario, two in British Columbia, two in Alberta, one in Quebec and one in Manitoba.
Hudson’s Bay also leases four distribution centres, including one in British Columbia and three in Ontario.
The liquidation is still pending court approval after the March 17 hearing.
