Home | WebMail | Register or Login

      Calgary | Regions | Local Traffic Report | Advertise on Action News | Contact

Business

Target Canada workers feel left in the dark as stores close

When Target invaded Canada and started hiring thousands of new staff, workers flocked to the beloved American retail giant, eager to be part of something fresh. But some say their journey is now closing on a very sour note, saying Target has missed the mark on employee compensation and communication.
Employees of Target's 133 Canadian stores are being offered 16 weeks pay during the wind-down. But some are unhappy with the way they are being treated during their final days with the company. (Geoff Robins/Reuters)

When Target invaded Canada and started hiring thousands of new staff, workers flocked to the beloved American retail giant. They were eager to be part of something fresh. But some believe their journey is now closing ona very sour note, sayingTarget has missed the mark on employee compensation and communication.

When Sarah first started working at an Ontario Target store almost two years ago, she was brimming with excitement. "We thought, this is it, were the bee'sknees, were setting up a store thats going totake over."

Sarah is not her real name. She wants that withheld, she says, because "weve been told as a team that were not to speak to the press or we could be terminated early."Target spokesmanEricHausmansaid in an emailed statement that its standard practice that media only deal with the companys public relations department.

Breaking news: youre out of work

Sarah believes her bright beginning at Target has deteriorated into the darkest of endings. The team floor member first learned Target Canada was doomed,not from her employer,but from the television news in the staff lunch room.

"Within half an hour of it being on the news, we had [customers] coming in going, 'Whens it all going liquidation, whens the sales start? Like, whoa, we just found out half an hour ago were losing our jobs. Let us wrap our head around that."

Sarah says it wasnt until at least an hour after learning the news that management started informing employees that Target was closing its 133 Canadian stores and letting goits approximately 17,600 workers.

Targets Hausman told CBC News that it broke the news to workers at about the same time it released details to the media.

Uncertain future

"That day was probably a day Ill never forget," says Sarah. "You couldnt go anywhere without seeing a team member absolutely in tears or in shambles, [saying] what am I going to do now?"

You couldnt go anywhere without seeing a team member absolutely in tears.Anonymous Target employee

"We live in a city where unemployment is skyrocketing. Theres no jobs here. So everybody is panicking," adds the single mother.

Sarahs colleague, Rachel -- again not her real name -- is also the sole breadwinner in her family. When she started working at Target almost twoyears ago, she was close to declaring bankruptcy.

"What's going to happen?" she asks. "Am I going to end up not being able to pay my rent and not being being able to feed my kid?"

Its not severance

Target is providing all eligible team members at least 16 weeks of pay starting on January 25th. But both Rachel and Sarah feel the deal is unfair. Thats because some workers may have to work the entire time to get that money and others wont while the stores wind down operations.

The law firm, Koskie Minsky LLP, is representing Target employees in the insolvency. In a webinar (online seminar), it informs workers, "You will likely be required to report to work for a number of weeks (and in some cases all) of your notice period." But it also notes that eligible employees who work fewer than their normal hours during the final weeks will still get paid.

"Thats the sad part, were begging to be laid offfirst," says Sarah. "If we work the full 16 weeks, its'Thank you very much for your hard work, goodbye. We get nothing. So its not severance Im getting. Its a paycheque."

Target's Hausmantold CBC News that there is no severance becauseTargetCanada isinsolvent.The company has applied for creditor protection andcreated an employee trust, providing workers with aguaranteed minimum 16 weeks pay.

Hausmansaidits a good deal, stating:"Id encourage you to look at how others are talking about this Trust. I have seen others quoted [in the media] as calling this set-up unprecedented for a [Companies' Creditors Arrangement Act] proceeding." He gave no details why it should be considered "unprecedented."

Labour expertMaurice Mazerolle believes the trust deal is "as good as it gets" for Target workers given the complex situation. But he says he understands why it would breed employee resentment because some will have to work until the bitter end and others wont. "Do you really want to create this,kind of indirectly,two-tiered system?" he asks.

The Ryerson University professor suggests Target should consider extra compensation for those who remain on the job: "Give them a bonus or something at the end of this in order to thank them for soldiering on when others werent."

No clear message

Both Sarah and Rachel also complain thatsince the bad news broke on Jan.15, Target hasnt been upfront about what its ill-fated employees can expect during the final weeks on the job.

"Were all just so scared," says Rachel. "We need to know what is happening, when are the liquidators coming, what is going to be the process with that, are we losing half the staff? And if so, is it going to be by volunteer? Is it random picking?"

Were all just so scaredAnonymous Target employee

"Its very tight-lipped," adds Sarah. "I dont feel theyre providing me with information. If anything, Its kind of like team members have to eavesdrop on the managements conversations."

In response, Targets Hausman said, "In terms of communications, leaders have messages for their teams and all team members have opportunities to ask any questions they may have during this difficult period."

Life after Target?

Both Sarah and Rachel must now figure out their futures. Rachel wants out of the retail business. Sarah says she and many of her colleagues cant see past their present troubles. She says they want details about what their job will entail in the next 16 weeks and if theyll even be working.

"We want answers before we can even comprehend what we can do in the future," she says.