Hudson’s Bay Co. has stopped paying commission to hundreds of cosmeticians and fragrance advisers during liquidation sales, effectively reducing their salaries.
These workers, also known as beauty advisers, earn commission on products sold, on top of their base salary.
Hudson’s Bay notified the beauty advisers 12 days in advance that, starting on April 20, they would only receive base pay, according to a company-issued letter seen by CBC News.
“Please note that this is a decision we have not taken lightly,” the retailer stated in the letter.
Unifor, the union that represents dozens of beauty advisers in Ontario, has filed a grievance against Hudson’s Bay, arguing that the commission cut violates its members’ collective agreement.
“This company is treating liquidation like a free-for-all where contracts and basic decency no longer apply,” Unifor’s Ontario regional director, Samia Hashi, said in a statement. “Workers are being kept in the dark and their pay is being cut without negotiation.”
In March, indebted Hudson’s Bay was granted creditor protection as it tries to find a buyer by the end of the month to stay afloat. The majority of the company’s 9,300 employees are set to lose their jobs once liquidation sales wrap up on June 15 at most of its department stores.
CBC News spoke with several beauty advisers distraught over the loss of commission pay, which they say will mean a significant reduction in their take-home pay.
“We’re not happy about it, because it’s our livelihood,” said a beauty adviser who works at a Hudson’s Bay in British Columbia, where employees aren’t represented by Unifor. CBC News is withholding the person’s name because they fear repercussions from the retailer for speaking with the media.
Speaking about their own case, the beauty adviser said they’re now earning just above minimum wage — $17.85 per hour in B.C. — a drop of more than $10 an hour compared with what they typically make when also earning commission.
“It’s just devastating because I don’t know how I’m going to get by,” the beauty adviser said. “I think a lot of people are going to have to dip into credit cards and [get] loans probably, to be able to pay their bills.”
‘I think it’s deplorable’
In response to a request for comment, Hudson’s Bay spokesperson Tiffany Bourré only confirmed in an email that the retailer has cut commission pay.
Legal experts told CBC News that typically, employers can’t significantly reduce workers’ salaries on such short notice without their consent.
However, when a company is under creditor protection, employees must file a claim to try to recoup what they’re legally owed. And when the company pays off its debts, workers are stuck at the back of the line, so they often wind up with little or nothing.
Unifor argues the beauty advisers it represents shouldn’t have to wait in that line, because commission pay is included in their contract.
“It’s a legally binding document,” said Dwayne Gunness, president of Unifor Local 40, which…
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