Earlier this month, we learned that Target’s Canadian experiment has failed. But we didn't know how badly. Apart from the 17,600 minimum-wage workers now out of a job, it turns out the American big box megacorp owes cities, suppliers and landlords over $5 billion. It's one of the biggest corporate bankruptcies in Canadian history.
Of course, that didn't stop Target from paying its incompetent CEO Gregg Steinhafel -- the man responsible for Target’s massive failure in Canada -- a severance and benefit package worth $75.6 million -- more than the severance for all 17,600 low-wage workers combined.
How many times have we seen this film? Huge corporation moves into Canada promising jobs, economic boosts and new shopping opportunities. Huge corporation demands and receives economic subsidies, tax breaks and massive borrowing perks from Canada. Huge corporation decides it isn't worth it, bails, gives its CEOs enormous golden handshakes and working Canadians are left holding the non-recyclable plastic bag.
You're not getting off that easy this time, Target. Pay your taxes and pay your debts now.
This is the second time Target has screwed over Canadian workers. In 2012 it moved into Canada after buying 200 Zellers stores and the first thing it did was bust the union and eliminate seniority for employees who had worked there for decades. All former Zellers employees had to start again at the bottom of Target’s pay scale. CEOs, however, even incompetent ones, are apparently only paid in eight digits.
Target's departure should infuriate Canadians. Its big box eyesores are now vacant with no comparable tenant in sight. Most of Target’s laid off workers won’t qualify for Employment Insurance or other benefits because they are largely part-time or working irregular shifts. And now, it is leaving municipalities and other Canadian companies in the lurch for literally billions. In short, Target is leaving behind a scorched earth legacy that will devastate our communities. In the meantime, the CEO responsible for all this mess is enjoying his $75.6 million in severance.
If we maximise pressure on Target now, we could set an important precedent: we won’t allow mega corporations to push their experiments at the cost of workers, taxpayers and companies. If you mess up, be prepared to pay!
Enough is enough. Tell Target to pay up, and pay up now.
**********
More information:
Target Canada owes tens of millions in unpaid taxes, rent, Global, January 23, 2015
17,600 workers lose as Target Canada closes its operations, rabble.ca, January 15, 2015