Sears Canada to create fund for laid off employees who received no severance
Posted August 15, 2017 4:09 pm.
Last Updated August 15, 2017 4:55 pm.
This article is more than 5 years old.
TORONTO – Lawyers representing workers at Sears Canada and the company have reached a deal to create a hardship fund for former employees.
The $500,000 for the fund will come from money set aside to pay bonuses under a key employee retention plan.
Former employees who would have otherwise been eligible for severance payments when they lost their jobs at the retailer can apply to receive money from the fund provided that they meet certain hardship criteria.
Sears Canada was criticized last month when it received approval to pay millions in bonuses to keep key employees on board while not paying severance to laid-off workers during its court-supervised restructuring.
The retailer announced a plan in June to close 59 locations across the country and cut approximately 2,900 jobs, without severance, while under the Companies’ Creditors Arrangement Act.
The hardship fund requires approval by the court overseeing the retailer’s restructuring at a hearing set for Friday.
