As the Hudson’s Bay Company (HBC) moves through court-supervised restructuring and liquidation, Canada’s largest private-sector union, Unifor, is intensifying pressure on the historic retailer to prioritize workers’ rights and compensation.
On Tuesday, May 27, Unifor will hold coordinated solidarity rallies in Toronto and Windsor to demand that HBC fulfil its obligations to employees. The union is calling for immediate protections for workers’ wages, pensions, and benefits as part of the broader Companies’ Creditors Arrangement Act (CCAA) process that the company entered in March.
Union Pushes Back as HBC Winds Down
“Hudson’s Bay’s financial restructuring cannot come at the cost of its frontline workers,” Unifor stated in its announcement. The rallies—one at HBC’s Scarborough-based e-commerce warehouse and another outside the Windsor Hudson’s Bay store—are intended to highlight worker concerns during this period of uncertainty.
The Toronto rally at 100 Metropolitan Road will feature Unifor Ontario Regional Director Samia Hashi, Local 40 President Dwayne Gunness, and current HBC workers. In Windsor, the rally at 3100 Howard Avenue (Devonshire Mall) will include Local 240 President Jodi Nesbitt, Unifor Retail Director Sharon Walsh, and local retail staff.
Unifor Locals 40 and 240 represent about 595 HBC workers at affected stores in Windsor, Kitchener, and Toronto’s CF Sherway Gardens, along with staff at the company’s Scarborough e-commerce logistics hub.
Federal Insolvency Reform Also on Union Agenda
Beyond holding HBC accountable, Unifor is calling for urgent federal action to overhaul Canada’s insolvency legislation. Among the union’s key demands:
- Raising the cap on the federal Wage Earner Protection Program (WEPP), which provides limited compensation to employees of bankrupt companies.
- Strengthening “super-priority” status for workers’ claims during insolvency proceedings.
- Increasing director liability for unpaid wages, benefits, and pension obligations.
- Creating trust-held or federally guaranteed funds to protect workers from corporate failures.
“Canada’s laws should not allow corporations to shed their obligations to workers while executives and creditors walk away whole,” said Unifor in its release.
HBC’s CCAA Filing and the Road to Liquidation
Founded in 1670, the Hudson’s Bay Company is Canada’s oldest retailer. In recent decades, however, the company has struggled to adapt to shifting consumer trends, rising operational costs, and increasing online competition amid a lack of investment. On March 7, 2025, the company filed for protection under the Companies’ Creditors Arrangement Act, citing the need to restructure amid growing financial strain.
At the time of filing, HBC operated 80 Hudson’s Bay department stores, 3 Saks Fifth Avenue stores, and 13 Saks OFF 5TH outlets across Canada. As part of its restructuring plan, HBC announced that up to 28 store leases would be assigned to Ruby Liu Commercial Investment Corp., with the aim of launching a new department store concept.
In addition to selling its store leases, HBC has agreed to transfer its intellectual property and brand assets to Canadian Tire. Saks Global, which operates Saks Fifth Avenue stores in the United States, is unaffected by the proceedings, as it functions independently.
Tensions Over Wages at Unionized Locations
Labour relations between HBC and Unifor have grown increasingly tense in recent months. In April 2025, during active liquidation sales, HBC eliminated commission-based pay at unionized locations, significantly impacting workers’ take-home earnings. The union filed formal grievances, and in early May, HBC reversed the decision, reinstating commissions for sales employees at affected stores.
Despite the reversal, Unifor maintains that HBC’s broader strategy has lacked transparency and fairness toward workers.
“The sudden elimination of commissions during liquidation was not just unfair—it was a violation of collective agreements,” said Local 40 in a previous statement. “The reversal is welcome, but the damage to morale is already done.”
What’s at Stake for HBC Workers
As the liquidation process unfolds, workers at Hudson’s Bay stores face increasing uncertainty. Severance, vacation pay, pension entitlements, and benefits are all at risk depending on the outcome of court proceedings.
While the CCAA process allows companies to restructure, it also permits them to disclaim leases, modify obligations, and reduce liabilities—including to employees.
HBC has already disclaimed several store leases, including five within the Primaris REIT portfolio, taking effect June 16, 2025. Dozens more may follow, depending on court approvals and investor interest.
For many employees, the potential loss of benefits and retirement income is of particular concern. While the WEPP offers limited short-term coverage for unpaid wages and vacation, it does not guarantee pension protection or full severance payments. This gap in coverage is one of the central issues Unifor is highlighting in its advocacy.
Workers Call for Accountability
Unifor’s message is clear: workers who spent years, and in some cases decades, building Hudson’s Bay deserve more than token compensation.
“The company must not be allowed to walk away from its obligations to the very people who kept it running,” said Unifor representatives in a statement ahead of the May 27 rallies.
Unifor says it continues to work with legal counsel and government representatives to ensure employees’ interests are represented throughout the CCAA process. The union has also indicated it may explore legal avenues if worker protections are not adequately secured.
