By Danielle 
Hudson’s Bay employees have been told they won’t receive severance pay — and they’ve also lost their health, dental and life insurance benefits, The Canadian Press reported.
A law firm representing the workers says that because of the company’s significant secured debt, it’s unclear whether employees will be able to recover anything owed to them directly from the 355-year-old retailer.
The Bay filed for creditor protection in March, citing pandemic-related losses, declining store traffic and tariffs. As the company liquidates and sells off its remaining assets to pay creditors, 9,364 workers are left with no safety net.
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Among them are 595 employees represented by Unifor, Canada’s largest private-sector union, who lost access to coverage for everything from dental cleanings to major restorative care. Many had relied on their plans for years.
Dental coverage is often one of the first things to disappear when companies go under. But for long-time employees — many of whom are older and may already face gaps in care — the consequences can be immediate.
“Unlike sophisticated lenders, they are not able to negotiate security for the contractual promises of their employers and therefore fall behind those secured lenders in recovering money owed to them,” The Canadian Press quoted Susan Ursel, a lawyer representing Bay employees, as saying in an email.
“A legislative priority for employees would provide more certain and effective protection for employees, which we would welcome.”
(With files from the Canadian Press)