Sears Canada employee “hardship fund” may be short $200,000
Back in August, Sears Canada agreed to set up a hardship fund for those employees that were let go without severance. Sears has closed down 58 stores, laid-off over 3000 employees, and are looking to close another 11 stores, which will result in the dismissal of an additional 1200 employees.
The hardship fund was put in place to help those laid-off without severance to help with their financial troubles in approved situations. Sears Canada agreed to put $500,000 in the fund, coming out of the $7.6 million in retention bonuses given to 43 Sears Canada executives. $300,000 has already been added to the fund, but the remaining $200,000 is nowhere to be found.
"There is uncertainty regarding the agreement of the [bonus payment] beneficiary who previously proposed to contribute such funds to now proceed to contribute those funds," the court-appointed monitor for Sears Canada says in the latest report to Ontario Superior Court.
It appears to be that Brandon Stranzl, former executive chairman of the company, has been reluctant to donate the money from his latest bonus. Stranzl stepped down from his role as chairman in order to place a bid to save the company.
These recent developments have not done Sear Canada any favors in turning around the negative responses they have been receiving from former employees.
"I'm disgusted with that," said Zobeida Maharaj. "I really thought it was a joke, that little amount. Out of that big bonuses they were given, all they could put aside was $500,000."
Maharaj worked as a senior operations store manager for 28 years at Sears Canada in the Toronto area before she was laid-off.
"I'm just in awe,” she went on to say. “I didn't think they would sink any lower, but they did. Do they have any kind of human heart? You're affecting people's lives."
Since August, the hardship fund has received 22 applications from former employees in need, 15 of which have been approved. In total, $35,000 of the $300,000 has been paid-out or spoken for so far.