Yesterday, Hudson’s Bay announced that it has eliminated commission pay for employees in cosmetics departments and on big-ticket items such as appliances, as part of its ongoing restructuring and liquidation process.
Unifor said that its members were informed that commissions were eliminated as of April 20 for staff working in cosmetics departments and those who earn extra cash on sales of big-ticket items such as appliances.
Unifor, Canada’s largest private-sector union, condemned the decision as a breach of collective agreements and an unjust blow to long-serving employees. “This is a blatant violation of our members’ collective agreements and a cruel blow, especially since managers have been rewarded with bonuses,” said Lana Payne, Unifor’s national president. The union represents about 595 Hudson’s Bay workers in Ontario, including those at stores in Windsor, Kitchener, Toronto, and at a Scarborough fulfilment centre.
The company, which confirmed the switch to wage-based compensation, said the move aligns with broader restructuring efforts. As part of its financial downturn, Hudson’s Bay is closing all but six of its stores, with liquidation sales set to conclude by June 15 and properties vacated by June 30.
Employees have already faced multiple waves of layoffs. On April 2, 179 corporate staff were issued termination letters, followed by 93 more on April 8. Court documents suggest additional layoffs are expected. While terminated workers will receive accrued vacation pay, they will not receive severance. The company is also considering the creation of a “hardship fund” to assist affected staff.
