Listen to Danny Cavanagh on News 95.7 with Rick Howe (clip starts at 38:19 – 46:08)
Last week, Sears Canada was in court and asked to start and sell off its inventory and equipment as soon as possible so it can maximize benefits for its stakeholders.
“This is generally what has people annoyed,” says NSFL President, Danny Cavanagh. “When we hear the sound bites that stakeholders need to maximize their benefits, which is code for making as much as they can.”
Last week an Ontario Superior Court Judge said they could begin the sell-off, and gave the approval to pay $9.2 million in retention bonuses to executives and other key employees. “The treatment of thousands of laid off Sears employees, under existing laws, highlights the need for stronger basic protections and employment standards for workers in such proceedings,” says Cavanagh.
It was reported in the media that Sears Canada will dole out big bonuses to senior management while the retailer restructures, even as thousands of laid-off workers aren’t being paid severance. Sears will pay up to $7.6 million in retention bonuses to 43 executives and senior managers at the company’s head office in Toronto.
“The big question is, why aren’t they able to pay out the severance if they have this bonus money and that’s a string we need to pull on,” says Cavanagh. “We encourage people to contact their local NS federal Liberal MPs and our provincial government to apply pressure to do something to ensure workers in these situations are protected.”