: ‘It’s pretty clear that workers are not the priority in these kinds of cases’
The closure of Hudson’s Bay, Canada’s oldest retailer, has intensified calls from labour leaders, advocates, and lawyers for legislative reform to better protect workers when companies go under, according to a report.
“When you’re looking for these kinds of improvements, you will have ebbs and flows, but right now, we have an opportunity because the Bay situation is fresh in people’s minds,” said Lana Payne, president of Unifor, in a report from The Canadian Press (CP).
Hudson’s Bay filed for creditor protection in March, citing the COVID-19 pandemic, declining store traffic, and tariffs as contributing factors to its financial downfall. With no new investors secured, the retailer began liquidating assets to pay creditors. Employees, however, were left at the back of the line for repayment.
Hudson’s Bay filed for protection under the Companies’ Creditors Arrangement Act (CCAA) on March 7. The employer officially closed shop June 1. However, with the company’s closure, thousands were left unemployed and without severance compensation, according to a previous report.
Staff were told they would not receive termination or severance pay and lost health, dental, and life insurance benefits, according to the CP report posted in BNN Bloomberg.
Legal experts and advocates argue that employees are uniquely vulnerable in insolvency situations.
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