Zellers is giving it up its Pine Centre Mall lease to Target. So where does that put its employees?
There's good news and bad news for the untold number of Zellers workers (a store representative would not disclose the exact figure).
First the good news: you have rights.
Each employee should know the rules to make sure they're properly compensated during this transition. You can bet Target and Zellers are making their nut off the deal, so why shouldn't you?
While we're sure the franchises intend to transition entirely within the law, to ensure no one feels ripped-off, we've outlined the highlights of employee entitlements under the Ministry of Labour's Employment Standards Act.
First the employer is obligated to lay you off in writing with appropriate notice or payment instead - otherwise Target is responsible for continued employment with the same benefits acquired during the Zellers employment.
The fact that Target is buying only Zellers's leasing rights and not the company itself doesn't change that fact.
Notice given may be two weeks or more depending on the duration of employment, any previous agreements and number of people laid off.
Notice goes up if lay-offs fall within what is legally described as "group termination."
If Zellers lays off 50 to 100 employees within a two-month period, every worker is entitled to eight weeks notice or equal payment. That's in addition to previous agreements outlined in union or non-union contracts. So if a contract states you're entitled to three weeks notice, add that to the eight to make it 11 weeks.
If Zellers lays off between 101 and 301 employees, they have to give 12 weeks notice or equivalent pay. If it's over 301 employees, the notice or equivalent pay is 16 weeks.
That may bring a bit of solace to those losing their jobs. Also, Target has promised to help Zellers employees go through the re-hiring process. And reps say that could be as many as 200 people.
Now the bad news: Target is definitely not promising to re-hire everyone and they're not obligated to either. Here's another downer: even if you are re-hired, kiss benefits, pay raises and vacation time earned over the years of Zellers employment goodbye. Target is within its right to start you right back down to the bottom entry level pay grade.
And whether it's good news or bad news, something to watch for is strategy in the laying off process that would save the employer money while leaving workers with less.
While we're unsure how many people Zellers employs, we'll work within the premise it's more than 100 and under 300.
So here's a thought: since Zellers has until 2012 to lay everyone off (that's when Target says it plans to take over and renovate), Zellers could lay off individuals along the way until they have fewer than 100 workers - that way, a group termination would save Zellers from having to pay four extra weeks notice per worker. And if it's under 50 employees, all the better. Some would call it just good business sense.
On the bright side, perhaps ex-employees or their family members will benefit from the reported $10 million Target is putting into renovations.
Which brings us to another question: we wonder if that reno price tag is so massive because it includes plans to expand the mall?
Those who followed the sale of the neighbouring P.G. Golf and Curling Club, which happened last fall, may remember that plans from the sale included expanding the mall by 6.4 acres into the former golf course.
Will we see a larger building in place when the $10 million is spent?
-- Prince George Citizen
