"'Bonuses are necessary,' but workers aren't? Not on my watch."
Those were the words of Charlie Angus as he took to social media Friday morning after media outlets reported that $7.6 million in bonus payments to 43 Sears Canada executives and upper-level managers would be distributed.
The payouts come on the heels of Sears Canada announcing that the retailer would be closing 59 stores and cutting approximately 2,900 jobs across Canada. The job cuts come as Sears is "restructuring," but the laid off employees will not be receiving severance packages, costing some in the tens of thousands of dollars.
"If elected NDP leader I will claw back every dime of bonuses paid to CEOS when they are laying off workers. I will close the loopholes that allow hedge fund operatives to get paid ahead of workers who are entitled to their severance and pension," wrote Angus on his official Facebook page.
The practice of paying retention bonuses, with the court's permission, is common in business restructuring. The bonuses are designed to keep key positions filled as the company attempts to become financially solvent once more. Unfortunately for laid off staff, their severance payments, benefits, and pensions are often among the last to be paid in this type of court-arranged restructuring.
See: Sears Canada shares plunge on report that it's preparing to seek court protection
Although the North Bay store has evaded the restructuring process thus far, 59 Sears locations, including 20 full-line stores, 15 Sears Home, 10 Sears Outlet, and 14 Sears Hometown stores are closing. Included in the closures are outlets in Sudbury, Sault Ste. Marie, and Timmins. Sears Canada reported a first-quarter loss of $144.4 million.
See: Sears Canada says there is 'significant doubt' about its future, ponders sale
In a May visit to North Bay, NDP leadership candidate Angus said, "The contract has been broken between the Canadian people and the capitalist class in this country," said Angus, "we have to re-establish some of that fairness."
Angus, a five-term MP in the Timmins-James Bay riding, is one of four remaining contenders for the leadership of the federal NDP party, along with Niki Ashton, Guy Caron and Jagmeet Singh. Leadership debates are planned for Aug. 2 in Victoria, Aug. 27 in Montreal, Sept. 10 in Vancouver, and Sept. 17 in Toronto. A leader will be selected through mail-in and online voting by party members.
