Unifor has filed a grievance against Hudson’s Bay Company alleging the retailer illegally eliminated commission pay for workers in cosmetics departments and those selling big-ticket items during its ongoing liquidation process.
The union said Tuesday that HBC unilaterally ended commission-based compensation as of April 20, shifting affected employees to base salary only. The company reportedly cited reduced inventory and sales as justification for the change.
“This is a blatant violation of our members’ collective agreements and a cruel blow especially since managers have been rewarded with bonuses,” said Unifor National President Lana Payne.
Liquidation concerns
The dispute comes amid broader tensions surrounding HBC’s liquidation process, with the union claiming the company lacks transparency and is disregarding its contractual obligations to workers facing termination.
According to Unifor, HBC has awarded $3 million in management bonuses while cutting worker compensation, an issue that has heightened frustration among employees.
“This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply,” said Unifor Ontario Regional Director Samia Hashi.
Hashi added that the situation demonstrates the need for stronger legislative protections and penalties for companies violating workers’ rights during insolvency.
Worker impact
The union represents approximately 595 HBC employees at stores in Windsor, Kitchener, and Toronto’s Sherway Gardens, as well as workers at the company’s e-commerce warehouse.
At a recent Unifor conference, workers from the e-commerce warehouse shared their reactions to the liquidation process.
“We’re all heart broken. We feel betrayed. We just want what was promised to us and for HBC to treat us with dignity and respect,” said Hazel Harris, a warehouse employee.
Unifor is demanding that HBC honour all aspects of its collective agreements, including severance and commissions payments, provide full transparency to workers, and immediately restore commission payments.
