Hudson’s Bay staff have been instructed they gained’t obtain severance pay — they usually’ve additionally misplaced their well being, dental and life insurance coverage advantages, The Canadian Press reported.
A legislation agency representing the employees says that due to the corporate’s vital secured debt, it’s unclear whether or not staff will have the ability to get better something owed to them immediately from the 355-year-old retailer.
The Bay filed for creditor safety in March, citing pandemic-related losses, declining retailer site visitors and tariffs. As the corporate liquidates and sells off its remaining property to pay collectors, 9,364 staff are left with no security web.
Learn associated story: Well being Canada pushes again on fears CDCP will erode personal protection
Amongst them are 595 staff represented by Unifor, Canada’s largest private-sector union, who misplaced entry to protection for every thing from dental cleanings to main restorative care. Many had relied on their plans for years.
Dental protection is commonly one of many first issues to vanish when firms go beneath. However for long-time staff — lots of whom are older and should already face gaps in care — the implications could be rapid.
“In contrast to subtle lenders, they don’t seem to be in a position to negotiate safety for the contractual guarantees of their employers and subsequently fall behind these secured lenders in recovering cash owed to them,” The Canadian Press quoted Susan Ursel, a lawyer representing Bay staff, as saying in an e-mail.
“A legislative precedence for workers would offer extra sure and efficient safety for workers, which we might welcome.”
(With information from the Canadian Press)
