As the Hudson’s Bay Company (HBC) winds down operations under court-supervised restructuring, Unifor—the largest private-sector union in Canada—is intensifying calls for justice and reform. On May 27, the union held coordinated rallies in Toronto and Windsor, demanding that HBC prioritize its workforce and that the federal government overhaul insolvency legislation to better protect workers caught in corporate collapses.
The rallies, led by Unifor Locals 40 and 240, come as hundreds of unionized HBC employees face the termination of their employment without full severance, vacation pay, or benefits. Nearly 600 workers across multiple locations—including stores in Windsor, Kitchener, CF Sherway Gardens in Toronto, and a Scarborough-based e-commerce warehouse—are directly impacted by HBC’s ongoing liquidation process.
Rallies Call Out Executive Bonuses Amid Worker Losses
At the heart of the protests is growing outrage over the disparity between executive compensation and frontline worker treatment.
“Unifor is calling on HBC to honour its legal responsibilities to workers and urges federal legislators to overhaul Canada’s insolvency laws to put workers first,” said Samia Hashi, Unifor’s Ontario Regional Director, during the rally in Toronto.
Workers claim they are owed tens of thousands of dollars in severance and benefits. Many have decades of service with the iconic retailer and are now facing unemployment with no guarantee of full compensation. Under current law, workers must wait for official termination before applying to the federal Wage Earner Protection Program (WEPP), which caps payments at $8,844.
“The WEPP cap leaves workers with significant financial loss while HBC executives and secured creditors like banks and landlords walk away with payouts,” said Dwayne Gunness, President of Unifor Local 40.
Court filings revealed that HBC executives may receive up to $3 million in bonuses as part of its restructuring—further inflaming tensions.
Union Seeks Comprehensive Reform to Insolvency Laws
Beyond holding Hudson’s Bay accountable, Unifor is seizing the moment to push for broader legislative change. Under Canada’s current insolvency framework, employees are categorized as “unsecured creditors,” placing them behind banks, landlords, and other investors when it comes to recovering compensation.
“The laws must be changed to make workers priority one,” said Gunness.
Unifor is urging Parliament to enact a package of reforms, including:
- Raising the WEPP cap.
- Expanding eligibility and access to WEPP benefits.
- Strengthening “super-priority” status for worker claims during insolvency.
- Holding corporate directors personally liable for unpaid compensation.
- Establishing trust-held or federally guaranteed compensation funds.
“This is about setting a precedent for how workers are treated in corporate failures moving forward,” said Jodi Nesbitt, President of Unifor Local 240. “What HBC is doing to its workforce should be outlawed, and we’ll continue fighting to ensure that workers are paid every penny they’re owed.”
Financial Collapse of a Historic Retailer
HBC, founded in 1670, filed for protection under the Companies’ Creditors Arrangement Act (CCAA) on March 7, 2025. At the time of filing, the company operated 80 Hudson’s Bay stores, 3 Saks Fifth Avenue stores, and 13 Saks OFF 5TH locations across Canada.
Facing mounting financial pressure due to declining foot traffic and changing consumer habits, the company is liquidating its assets and reassigning store leases. One major lease acquisition involves Ruby Liu Commercial Investment Corp., which intends to launch a new department store concept in the vacated spaces.
In parallel, HBC has agreed to sell its intellectual property and brand assets, including the Hudson’s Bay name, to Canadian Tire Corporation for $30 million—pending court approval. The U.S. arm of Saks, operated independently by Saks Global, is not affected by the Canadian restructuring.
Labour Tensions Boil Over
The relationship between HBC and its unionized employees has deteriorated during the liquidation process. In April 2025, the company abruptly eliminated commission pay for sales staff at unionized locations. This move was met with swift opposition from Unifor, which argued it violated collective agreements. After filing a grievance, the union succeeded in reversing the decision, and commissions were reinstated in early May.
“The sudden elimination of commissions during liquidation was not just unfair—it was a violation of collective agreements,” stated Local 40 at the time. “The reversal is welcome, but the damage to morale is already done.”
Still, workers say the broader restructuring has been handled with little transparency, and the impact on long-serving staff has been severe.
Lease Disclaimers and Store Closures Intensify Uncertainty
As part of the CCAA process, HBC has disclaimed several store leases. Among these are five locations within the Primaris REIT portfolio that will revert to Primaris control on June 16, 2025. Additional store closures and lease disclaimers are expected in the coming weeks as liquidation wraps up.
Employees at affected stores fear they will be left without proper compensation. While WEPP offers some financial support, it does not cover full severance or protect pension entitlements—making it inadequate for many.
A Larger Fight for Worker Rights
For Unifor, the rallies represent more than just a response to one company’s collapse. They are part of a national campaign to reshape how Canada handles employer bankruptcies and to establish legal safeguards for workers’ financial wellbeing.
“Canada’s laws should not allow corporations to shed their obligations to workers while executives and creditors walk away whole,” said the union in a release ahead of the rallies.
Unifor has signalled that it may pursue legal and political avenues to ensure worker claims are respected. The union continues to work with legal counsel and government representatives to push for stronger protections and a more equitable outcome for all employees involved.
The Road Ahead
As liquidation progresses and Hudson’s Bay nears the end of its retail operations, the future remains uncertain for its workforce. Many are still awaiting clarity on compensation, termination, and access to federal support.
“The company must not be allowed to walk away from its obligations to the very people who kept it running,” said Unifor.
With calls for change echoing from the rally podiums in Windsor and Toronto, the battle now shifts to Parliament, where labour leaders hope to finally see Canadian insolvency law catch up to the realities faced by frontline workers in corporate failures.
