Hudson’s Bay Cuts Commission Pay for Beauty Workers During Liquidation Sales
Hudson’s Bay has stopped paying commission to hundreds of workers who sell cosmetics and fragrances during its store closing sales. These workers, called beauty advisers, normally earn extra money based on how much they sell, in addition to their regular salary. Without commission, many of them are now earning much less.
The company told workers just 12 days before the change that, starting April 20, they would only get their base pay. In a letter to staff, Hudson’s Bay said the decision was not made lightly.
A union called Unifor, which represents some of these workers in Ontario, has filed a complaint. The union says the company broke its contract by taking away commission without talking to the workers first.
“This company is acting like rules don’t matter anymore,” said Samia Hashi, Unifor’s Ontario director. “Workers weren’t properly informed, and now their pay is being cut.”
Hudson’s Bay is currently under creditor protection because it owes a lot of money. It’s trying to sell the company by the end of the month. Most of its 9,300 workers are expected to lose their jobs when the liquidation sales end on June 15.
Many beauty advisers said they are upset and worried about money. One worker in British Columbia said their hourly pay dropped by more than $10 without commission. Now they’re barely making more than minimum wage and may need to use credit cards or loans to pay bills.
Legal experts say companies usually can’t lower pay without asking workers first. But if a company is under creditor protection, workers often have to file a legal claim to try to get the money they’re owed—and they’re usually the last to be paid.
Unifor says workers shouldn’t be treated this way, especially because commission is part of their contract.
“You can’t just cut someone’s pay like that,” said Dwayne Gunness, head of Unifor Local 40. “It’s unfair.”
This loss of commission comes after workers were also told they won’t be getting severance pay when they’re laid off. Unifor says some workers should be getting up to $35,000 in severance. At the same time, the company is paying up to $3 million in bonuses to 121 executives and managers.
Hudson’s Bay didn’t respond to questions about severance or bonuses. Store workers have been offered smaller bonuses of up to $1,000 if they stay until the stores close. But many workers say that doesn’t make up for the loss of commission.
“Most of us would rather just have the commission pay back,” said one beauty adviser.
Some workers may be able to get money through the federal Wage Earner Protection Program, but it only covers part of what they’re owed. A lawyer for some Hudson’s Bay employees said many are now looking for other jobs in a tough job market.
The situation has sparked new calls for the government to improve laws that protect workers when companies go out of business. In 2023, the government passed a law to better protect pensions, but it won’t take effect until 2027.
Unifor says workers deserve more protection, especially when they’ve spent years working for the same company.
Still, others argue that in an insolvency process, worker rights can’t come before all other debts. A spokesperson for a Canadian restructuring group said any changes to the system should consider the bigger picture.
Even if new laws are introduced, they won’t help Hudson’s Bay workers right now—many of whom are about to lose their jobs and the money they’ve earned.
