Judge approves Sears Canada hardship fund

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TORONTO – A judge has approved a hardship fund for former Sears Canada employees that will come from a pool of money set aside to pay bonuses for key employees.

The $500,000 fund will help former employees facing difficulty who would have otherwise been eligible for severance payments when they lost their jobs at the retailer.

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 court did not hear a motion filed by a group of creditors that wants to sue the company’s executive officers and directors, alleging negligent misrepresentation and oppression.

The retailer’s court-appointed monitor says the group wants an Ontario judge’s permission to launch their case against the company. The next hearing is scheduled for Tuesday.
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3 COMMENTS

  1. It’s not a matter of sucking it up, but rather a matter of fairness and just dues. Mr. Poll, 28 years at the mill would have most likely lined your pockets to be able to afford whatever. These people are paid minimum wage and depend on the meager income to survive. these people who paid into their pension are now being denied their dues and severence, but “key execs and directors” get raises?

  2. I had 28 years in st Mary’s paper when it went bankrupt and they didn’t pay a dime of severence either so suck it up buttercup.

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