TORONTO — Sears Canada, which is undergoing court-supervised restructuring after seeking bankruptcy protection, attracted significant negative press attention this week as it seeks to retain key management. Nearly 3,000 laid off staff will lose their severance while the executives who presided over the company’s collapse receive bonuses to encourage them to remain with the company as it is wound down.
“Whenever a company is under creditor protection, employees are at the back of the line,” Toronto labour lawyer Lior Samfiru explained to the CBC, adding that the company is following bankruptcy law to the letter. Sears is also seeking permission to cease pension payments, which could lead to lower payouts to veteran employees and even the loss of health insurance.
