Canadian private sector union Unifor has levelled accusations against Hudson's Bay Company (HBC) for cutting commission-based pay for its workers without prior agreement during the company's liquidation period.

The union asserts this action breaches existing collective agreements and results in a drop in income for employees facing imminent layoffs.

As per notification received by the union, employees in HBC’s cosmetics department and those earning commissions on high-value items such as appliances will transition to a fixed base salary starting 20 April 2025.

However, HBC has justified this change by pointing to a decrease in available inventory and sales figures.

A grievance has been filed by Unifor, which argues that HBC's decision contravenes the rights protected under legally binding collective agreements.

Unifor national president Lana Payne said: "This is a blatant violation of our members' collective agreements and a cruel blow especially since managers have been rewarded with bonuses.

"We're talking about workers who've spent years working for this company, and now they're being denied income they've rightfully earned and are entitled to."

Unifor has also voiced concerns regarding HBC's overall approach to the liquidation process, criticising the company for its lack of transparency and failure to meet its obligations.

The union pointed out that while employees are grappling with job loss, management has received $3m in bonuses.

Unifor Ontario regional director Samia Hashi said: "This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply.

"Workers are being kept in the dark and their pay is being cut without negotiation. This is exactly why we need stronger legislative protections and enforceable penalties for companies that violate workers' rights. Workers should be priority one during corporate insolvency and bankruptcy."

The union demands that HBC adhere to all aspects of its collective agreements, including severance and commissions, maintain clear communication with its workforce, and retract its decision to cut commission pay.

Unifor Locals 40 and 240 represent close to 595 HBC staff across stores in Windsor, Kitchener, Toronto's Sherway Gardens, as well as the e-commerce warehouse employees.