Sears Canada employees trying to stop senior managers from getting bonuses

Nearly 14,000 Sears Canada employees are trying to block senior managers and executives from getting $7.6 million in bonuses after thousands of workers were recently laid off without severance.

The motion was filed by a Toronto law firm on behalf of the employees to Ontario Superior Court. It argues the Sears’ retention payment plan should not give bonuses to the 43 head office staff.

The company recently said it plans to cut approximately 2,900 jobs while paying $9.2 million in retention bonuses to key staff. The retailer said it’s doing this to create incentives so management doesn’t quit and to ensure a smooth liquidation.

However, the motion said there is no evidence the 43 employees need an incentive to keep working. It also said the $7.6 million in retention bonuses is “an excessive amount” given the short amount of time.

The head staff will get paid in instalments after 45, 90 and 180 days — regardless of whether an employee completes his or her duty, the motion said.

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WATCH: What rights do Sears employees have?

2:39 What rights do Sears employees have?

There are still 2,400 employees working to help close down the store who are not receiving any termination or severance pay.

The motion does say that the closing managers should receive the retention bonuses. About $1.6 million will go to 116 senior employees in the closing stores.

Susan Ursel, a lawyer with the firm who filed the motion, told Global News the issue is currently on hold in order to allow employees and the company engage in discussion.

A court date has yet to be set regarding the matter.

Global News reached out to Sears Canada who said the “motion is not pending. It was filed ahead of the comeback hearing that took place on July 13. It is common for a variety of stakeholders to file a variety of motions prior to the comeback hearing. In any event, the different parties came together to discuss a variety of issues prior to the comeback hearing and, among other items, the special payments to the pension and other payments were extended to September 30, 2017.”