Former and current employees of Sears Canada have filed a legal motion in an attempt to stop dozens of company executives from splitting $7.6 million in retention bonuses while many laid-off workers miss out on severance payments.
In court documents, lawyers for the employees call the bonus pay 鈥渆xcessive鈥� after 2,900 employees from 59 stores were let go in June.
If the payment goes through, 43 executives would take home bonuses.
A spokesperson for Sears Canada said these sorts of payments are common in restructuring and necessary to keep executives in the business.
But former Sears Canada CEO Mark Cohen told 麻豆影视 the workers deserve more support from their employer.
"I would protect the employment of the folks working in stores. I don't know that I would protect the employment of executives who, frankly, are in no small measure responsible for this problem," Cohen said.
After news of the layoffs, numerous stories emerged of long-time employees suddenly being given pink slips. Josee Nadeau, a sales associate for more than 30 years, was out of a job with no severance pay.
鈥淶ero, zero. Nothing,鈥� Nadeau said.
Sears Canada has been The hashtag #BoycottSearsCanada began trending on Twitter, and the company鈥檚 Facebook page has stopped allowing public posts.
Public relations expert Bob Pickard says the company鈥檚 PR headaches could鈥檝e been avoided.
鈥淚f they had shared the pain between the executives and the employees, they could have earned trust and galvanized the confidence of consumers going forward. But they鈥檝e lost that chance now,鈥� he said.
Liquidation sales are underway at many of the shuttering Sears stores before they officially close their doors by October. The retailer says prices would be discounted up to 50 per cent.
Sears Canada has said it hopes to complete restructuring by the end of the year.
With a report from BNN鈥檚 Jon Erlichman
