Hudson’s Bay has decided not to go ahead with its earlier plan to lower commission pay for hundreds of employees during its store closing sales. (Carlos Osorio/Reuters)
Hudson’s Bay Company has reversed its earlier decision to cut commission pay for hundreds of its beauty and fragrance advisers during its store liquidation process. The change comes after a grievance was filed by Unifor, the union representing many of the affected workers, and media coverage highlighting the issue.
Just two weeks ago, many beauty advisers were left disheartened when the retailer announced it would stop paying them commission during liquidation sales. The loss of commission — which adds roughly $10 an hour to their income — would have severely affected their already modest wages. One B.C.-based adviser, speaking anonymously for fear of losing their job, shared relief at the reversal: “We’re ecstatic that we’re going to be able to pay bills now.”
On April 8, Hudson’s Bay had informed these employees that their pay would be reduced to just the base rate starting in 12 days. This change was particularly hard-hitting, as many of these workers earn just above minimum wage. But by April 20, Hudson’s Bay had changed course. A note sent to employees confirmed commission would continue without any gaps, though no official reason for the reversal was given.
Despite this step back from pay cuts, Hudson’s Bay is standing firm on its decision not to offer severance pay to laid-off workers. The retailer, which entered creditor protection in March, plans to close all 96 Bay and Saks stores by June 15. That move is expected to result in over 9,300 job losses.
Unifor argues that this decision violates its collective agreement with the company. “You can’t just reduce someone’s pay midstream,” said President Dwayne Gunness, Unifor Local 40. The union represents 40 of the affected beauty advisers and a total of 595 Hudson’s Bay workers.
Hazel Harris, one of 157 workers laid off from the company’s Toronto distribution center last Friday, expressed her disappointment over the lack of severance. At 60 years old and after seven years of service, she says the payout would’ve given her some financial breathing room during a difficult time. “It’s heartbreaking,” she said. “When you're older, finding a new job isn’t easy. The future feels uncertain.”
The layoffs have already begun. Around 200 corporate employees were let go on April 4, followed by Friday’s 157 non-corporate layoffs. Unifor says some of its members could be owed up to $35,000 each in severance, depending on tenure and role. The union plans to file a formal grievance once all 595 represented workers have been dismissed.
Hudson’s Bay has remained silent beyond confirming it will not be offering severance. However, affected employees may be eligible to claim a portion of their severance through a federal program that supports workers laid off from companies under insolvency.
