Redundant workers shocked that remaining "key" staff will get massive retention payments
Laid-off Sears employees left without severance pay are disappointed that the embattled retail giant is allowed to pay $9.2 million in "retention payments" to remaining managers and staff.
The company last month filed for court protection from creditors, announcing plans to shutter 59 stores and make 2900 workers redundant.
Court documents show the retailer plans to pay up to $7.6 million to 43 senior managers and essential workers, and $1.6 million to 116 workers at stores that are closing.
Under Sears' restructuring plan, approved by the Ontario Superior Court of Justice, managers will receive bonuses after 45, 90 and 180 days, Global News reports.
In court documents, Sears explained: “These employees have significant experience and specialized expertise that cannot be easily replicated or replaced. Further, these key employees will likely have other, more certain employment opportunities and will be faced with a significantly increased workload during the restructuring process.”
Meanwhile, employees who have lost their jobs will miss out on severance pay, benefits and pension plans.
Staff who had worked for Sears for decades before being laid off said they were shocked they would not get any entitlements.
Marinella Gonzalez, who had been with the retailer for 18 years, told The Canadian Press that she didn’t believe managers should be getting bonuses.
“This situation happened because of mismanagement, and it should not be the workers that have to pay for that.''
Sears received the court’s permission to pay the retention bonuses after reaching a compromise that will see it continue some benefit and pension payments until the end of September.
The company had earlier asked to halt those payments due to its financial woes.
Related stories:
Retail giant moves to suspend benefits, pension payments
Thousands of jobs to go as major department store obtains court’s help
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The company last month filed for court protection from creditors, announcing plans to shutter 59 stores and make 2900 workers redundant.
Court documents show the retailer plans to pay up to $7.6 million to 43 senior managers and essential workers, and $1.6 million to 116 workers at stores that are closing.
Under Sears' restructuring plan, approved by the Ontario Superior Court of Justice, managers will receive bonuses after 45, 90 and 180 days, Global News reports.
In court documents, Sears explained: “These employees have significant experience and specialized expertise that cannot be easily replicated or replaced. Further, these key employees will likely have other, more certain employment opportunities and will be faced with a significantly increased workload during the restructuring process.”
Meanwhile, employees who have lost their jobs will miss out on severance pay, benefits and pension plans.
Staff who had worked for Sears for decades before being laid off said they were shocked they would not get any entitlements.
Marinella Gonzalez, who had been with the retailer for 18 years, told The Canadian Press that she didn’t believe managers should be getting bonuses.
“This situation happened because of mismanagement, and it should not be the workers that have to pay for that.''
Sears received the court’s permission to pay the retention bonuses after reaching a compromise that will see it continue some benefit and pension payments until the end of September.
The company had earlier asked to halt those payments due to its financial woes.
Related stories:
Retail giant moves to suspend benefits, pension payments
Thousands of jobs to go as major department store obtains court’s help
Want the latest HR news direct to your inbox? Sign up for HRD Canada's daily newsletter.