Hudson’s Bay will terminate more than 8,000 employees, close stores by Sunday

Allison Hurst reports from a Hudson’s Bay distribution hub where employees are holding a rally on one of the final days of work to honour severance obligations.

More than 8,000 Hudson’s Bay employees will be out of work by June 1 as Canada’s oldest company closes its doors following the completion of its liquidation sale.

Hudson’s Bay filed a motion on Monday stating that it will have terminated 8,347 employees, or 89 percent of its workforce, by June 1, most of whom work in retail stores that are set to shutter on that day.

The company added that an additional 899 employees will be let go around June 15. According to the motion, Hudson’s Bay had 9,364 employees across its 96 stores, four distribution centres and head office at the time it filed for creditor protection in March.

In the motion, it stated that employees “will be paid their accrued vacation pay as at their date of termination, however, the company does not expect any other termination or severance payments to be paid by the company upon termination.”

After June 15, the company anticipates 50 retail employees, 58 corporate employees and 10 distribution centre employees will remain “to assist with the final wind-up of the Applicant’s business.”

The company stated it is seeking the WEPPA (Wage Earner Protection Program Act) declaration to assist the terminated employees. It would allow workers to collect certain eligible wages, including termination and severance pay, salaries, commissions and vacation.

Unifor, the union representing Hudson’s Bay workers, has been calling for the company to honour its legal severance obligations.

Hudson’s Bay workers held a rally Tuesday at a logistics hub in Scarborough as well as a store in Windsor to demand that the company “put workers first as it moves through its liquidation process.”

The union is also pushing for the reform of the federal insolvency law, including raising the cap on WEPPA. Unifor has said the cap is “far below negotiated severance entitlements and is inadequate to meet workers’ needs as they face termination...”

The maximum amount eligible employees can receive under the program equals seven weeks’ maximum insurable earnings under the Employment Insurance Act, according to the government.

Earlier this month, Hudson’s Bay announced that it was selling its intellectual property, including its iconic multi-coloured stripes motif and coat of arms, to Canadian Tire for $30 million.

Last week, Hudson’s Bay agreed to sell 28 of its 96 store leases to B.C. mall owner Ruby Liu.

With files from The Canadian Press