Hudson’s Bay backtracks on cutting workers’ commission pay, but still won’t offer severance

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.