Apr. 22, 2025 "Hudson's Bay workers denied commission pay during liquidation sales": Today I found this article by Sophia Harris on CBC:
Hudson's Bay Co. has stopped paying commission to hundreds of cosmeticians and fragrance advisers during liquidation sales, effectively reducing their salaries.
These workers, also known as beauty advisers, earn commission on products sold, on top of their base salary.
Hudson's Bay notified the beauty advisers 12 days in advance that, starting on April 20, they would only receive base pay, according to a company-issued letter seen by CBC News.
"Please note that this is a decision we have not taken lightly," the retailer stated in the letter.
Unifor, the union that represents dozens of beauty advisers in Ontario, has filed a grievance against Hudson's Bay, arguing that the commission cut violates its members' collective agreement.
"This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply," Unifor's Ontario regional director, Samia Hashi, said in a statement. "Workers are being kept in the dark and their pay is being cut without negotiation."
In March, indebted Hudson's Bay was granted creditor protection as it tries to find a buyer by the end of the month to stay afloat. The majority of the company's 9,300 employees are set to lose their jobs once liquidation sales wrap up on June 15 at most of its department stores.
CBC News spoke with several beauty advisers distraught over the loss of commission pay, which they say will mean a significant reduction in their take-home pay.
"We're not happy about it, because it's our livelihood," said a beauty adviser who works at a Hudson's Bay in British Columbia, where employees aren't represented by Unifor. CBC News is withholding the person's name because they fear repercussions from the retailer for speaking with the media.
Speaking about their own case, the beauty adviser said they're now earning just above minimum wage — $17.85 per hour in B.C. — a drop of more than $10 an hour compared with what they typically make when also earning commission.
"It's just devastating because I don't know how I'm going to get by," the beauty adviser said.
"I think a lot of people are going to have to dip into credit cards and [get] loans probably, to be able to pay their bills."
'I think it's deplorable'
In response to a request for comment, Hudson's Bay spokesperson Tiffany Bourré only confirmed in an email that the retailer has cut commission pay.
Legal experts told CBC News that typically, employers can't significantly reduce workers' salaries on such short notice without their consent.
However, when a company is under creditor protection,
employees must file a claim to try to recoup what they're legally owed.
And when the company pays off its debts,
workers are stuck at the back of the line, so they often wind up with little or nothing.
Unifor argues the beauty advisers it represents shouldn't have to wait in that line, because commission pay is included in their contract.
"It's a legally binding document," said Dwayne Gunness, president of Unifor Local 40, which represents 40 beauty advisers.
"You can't just, midstream, [reduce] someone's pay," he said. "I think it's deplorable."
The commission loss is another in a series of blows to Hudson's Bay workers, who learned last month that the retailer won't be paying severance to laid-off employees.
Unifor, which represents a total of 595 Hudson's Bay employees, says some members are entitled to upwards of $35,000 in severance pay.
The union argues the retailer's decision not to pay severance is especially egregious considering it's paying up to $3 million in retention bonuses to company executives and store managers.
"Unifor will continue to
call out this injustice,
defend workers,
and demand accountability,"
Unifor national president Lana Payne said in a statement in March.
Hudson's Bay did not respond to questions about severance and bonus pay. It's common for indebted companies to pay retention bonuses to maintain key staff.
Store employees have been offered much smaller bonuses if they continue working until the end of liquidation sales. Beauty advisers who meet the criteria will receive up to $1,000 each, according to a company-issued memo seen by CBC News.
But the beauty adviser CBC News interviewed said the bonus won't make up for what will be lost in commission pay.
"All of us would have been more grateful with them actually just keeping the commission."
Time for change?
Hudson's Bay workers can apply for financial support through the federal government's Wage Earner Protection Program, which provides financial assistance to workers when companies become insolvent.
But Toronto lawyer Andrew Hatnay, who represents a number of the retailer's employees, said those who qualify will typically receive only a portion of the compensation they're owed.
"They're upset and distressed," he said about Hudson's Bay workers he's spoken with.
"They're having to look for alternate employment in a very tough environment now with tariffs and all kinds of other economic problems."
The plight of Hudson's Bay employees has reignited calls for the federal government to establish more protections for workers when a company becomes insolvent.
In 2023, the federal government improved protections for workers with defined benefit pension plans if their employer becomes insolvent. The legislation takes effect in 2027.
Unifor argues workers should get other protections as well, such as for severance pay.
"Focus has to be put on employees
... especially when they have invested the major part of their life to supporting the employer,"
Unifor's Gunness said.
However, the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), which represents insolvency and restructuring businesses, argues that workers' rights can't come at the expense of other creditors in the insolvency process.
"Enhancing one area
without considering the broader impact can unintentionally weaken others,
ultimately undermining the effectiveness of the insolvency system,"
CAIRP spokesperson Angela Joyce said.
Even if Canada's newly elected prime minister does initiate more protections, they won't come in time for Hudson's Bay workers, many of whom will soon be out of a job — and some of the cash that they're owed.
https://www.cbc.ca/news/business/hudson-s-bay-workers-commission-1.7515327
No severance for workers, bonuses for managers, no commissions for sales personnel.... maybe it's a good thing HBC is going out of business.
same thing happened to sears employees
My opinion: This article is about exposing how Hudson's Bay is underpaying and mistreating their employees.
This reminds me of this comment:
"#MeToo movement becomes #WeToo in in victim-blaming Japan"/ "Outrage as women in Japan told not wear glasses in the workplace"
"You never look good when you are trying to make someone else look bad."- Unknown
Cham: Sometimes people need to be exposed for who they are hahah or maybe I should stop being petty
Tracy Au: There's a difference between trying to make someone look bad, and exposing them for who they are. It's like those #MeToo accusers and victims, they are plainly telling everybody about the perpetrators. They're not trying to make them look bad.
Hudson's Bay Co. has backtracked on its decision last month to cut commission pay earned by hundreds of cosmeticians and fragrance advisers during liquidation sales, CBC News has learned.
The retailer's sudden change of heart follows a grievance filed by its union, Unifor, which represents dozens of the workers, and CBC News coverage.
CBC reported two weeks ago that several cosmeticians and fragrance advisers (also knows as beauty advisers) said they were distraught over the loss of commission pay, as it would significantly reduce their take-home pay.
"It wasn't a good look for them to treat employees that way," said a beauty adviser in B.C., in response to Hudson's Bay backtracking.
"I'm just so grateful that I'm getting the commission back," said the person, adding that it 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."
CBC News is withholding the worker's name due to fear of repercussions from the retailer for speaking with the media.
In March, cash-strapped Hudson's Bay was granted creditor protection as it considered bids for segments of the company. The iconic retailer's more than 9,300 employees are expected to lose their jobs by June 15 — the closing date for all 96 Bay and Saks-branded stores.
Beauty advisers earn commission on products sold, on top of a base salary. On April 8, Hudson's Bay gave these workers 12 days' notice that the company would start paying them base pay only, according to a company-issued letter seen by CBC News.
It was another in a series of blows to Hudson's Bay workers, who learned last month the retailer won't pay severance to laid-off employees.
In a grievance filed against Hudson's Bay, Unifor argued the commission cut violated its members' collective agreement.
"You can't just, midstream, [reduce] someone's pay," said Dwayne Gunness, president of Unifor Local 40, which represents 40 beauty advisers.
Two weeks later, the company reversed course and said commission pay would remain with no interruptions, according to Unifor and a Hudson's Bay note sent to beauty advisers that CBC News has seen. The note did not state a reason for the decision.
The retailer did not immediately respond to requests for comment.
Hudson's Bay starts laying off workers
Gunness says that last Friday, Hudson's Bay laid off 157 workers at its online distribution centre in Toronto.
It marks the first round of non-corporate layoffs. The company terminated around 200 corporate employees on April 4, according to court documents.
Although Hudson's Bay has reinstated commission pay,
it won't be paying any workers severance once they're laid off.
"I'm having a really hard time accepting the fact that we don't get severance," said Hazel Harris (no relation to this reporter), one of the 157 laid-off distribution centre workers. "It's very heartbreaking what's going on."
Harris, 60, has worked for Hudson's Bay for more than seven years. She says severance pay would have provided a much-needed safety net.
"I'm scared because with the trade war looming like an umbrella over us, we don't know how many jobs there will be out there," she said.
"When you join the older community, it's even more difficult to find a job, so it's going to be a tough road ahead."
Unifor, which represents a total of 595 Hudson's Bay employees, says some members are entitled to upwards of $35,000 in severance pay.
Gunness says 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.
"We have a collective agreement which is legally binding," he said.
Hudson's Bay's only comment so far on severance is to confirm that the company isn't paying it.
Hudson's Bay workers may be able to recover a portion of their severance pay by applying for financial assistance through a federal government program for workers laid off by insolvent companies.
https://www.cbc.ca/news/business/hudson-s-bay-commission-1.7526339
thank you to both CBC and Unifor for going to bat for these workers.
imagine if the HBC had been run by the employees for the employees,
and not by some US execucrat for his own benefit.
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