HBC reinstates commission pay amid non-corporate layoffs

Union filed grievance citing 'slashing' of commission pay during liquidation sales

HBC reinstates commission pay amid non-corporate layoffs

The Hudson’s Bay Company (HBC) has reinstated the commission pay earned by hundreds of cosmeticians and fragrance advisers during liquidation sales.

That came after Unifor filed a grievance in April alleging that the HBC was “unilaterally slashing workers’ commission pay” as it proceeds with its liquidation.

“I'm just so grateful that I'm getting the commission back,” said a beauty adviser in B.C in a Radio-Canada report. 

The commision, she says, provides at least an extra $10 an hour on top of base pay — which is just above minimum wage. 

“We're ecstatic that we're going to be able to pay bills now.”

The union says it learned that commission-based pay would be eliminated as of April 20 for members working in cosmetics departments, as well as for those who earn commission on big-ticket items such as appliances. These workers would have been shifted to a base salary only.

HBC began its full liquidation process in March.

First found of non-corporate layoffs at HBC

HBC also laid off 157 workers at its online distribution centre in Toronto this past Friday, marking the first round of non-corporate layoffs amid the company’s ongoing liquidation process, according to the Radio-Canada report.

Dwayne Gunness, president of Unifor Local 40 — which represents 40 beauty advisers — confirmed the layoffs, reports Radio-Canada.

And HBC won’t be providing termination pay to workers being laid off, according to one worker.

“I'm having a really hard time accepting the fact that we don't get severance,” says Hazel Harris, one of the 157 laid-off distribution centre workers, according to the Radio-Canada report. “It's very heartbreaking what's going on.”

The employer also laid off nearly 200 corporate employees on April 4.

HBC has confirmed that it will not be providing severance compensation to the workers, according to Radio-Canada.

Unifor had previously criticised HBC for awarding about $3 million in bonuses to executives amid the company’s liquidation process.

“No manager or executive should see a bonus while severance and other legal obligations to workers remain unpaid,” says Unifor National President Lana Payne.

Once all the 595 workers are laid off, Unifor will file a grievance over the issue, as severance is also included in the workers' contract, says Gunness

“We have a collective agreement which is legally binding,” he says in the report.

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