We need legislation to prioritize workers when companies go bankrupt

The Nova Scotia Federation of Labour stands in solidarity with Hudson’s Bay workers, who are facing injustice as the company prepares to shut its doors on June 1st. Thousands of workers, including those with decades of service, are being denied the severance and benefits they have earned while company executives walk away with millions in bonuses.

This unacceptable treatment highlights flaws in our insolvency laws, which prioritize the interests of banks, landlords, and investors over those of workers. The affected employees must rely on the Wage Earner Protection Program (WEPP), which caps payments at approximately $8,844, leaving significant losses for workers who are unsecured creditors under the existing system.

This inadequate system undermines the fairness Canadian workers deserve. Hudson’s Bay workers, like many before them in similar situations, are demanding changes, including granting workers priority status in bankruptcy proceedings, holding executives personally responsible for unpaid wages and raising the WEPP cap. These reforms are critical to ensuring no worker in Canada suffers financial hardship due to corporate failure. We call for action to prioritize workers and fight for equity and justice in the workplace.