It’s Day 38 of the Luzon-wide lockdown.
As things stand at present, with the government expressing its displeasure over hundreds of cases of violations of travel restrictions, there’s a possibility the lockdown may again be extended after April 30.Although this prospect has been denied by the government’s spokesperson on issues related to the new coronavirus disease (COVID-19), some government officials are sending a different signal.
Adding to the uncertainty is President Duterte’s threat to invoke his martial law powers if breaches of lockdown regulations persist.
Whenever “liberation” day may come, it will not be business as usual immediately, or even months after, for the business community.
The government’s economic managers have conceded the lockdown would have a deleterious impact on the country’s economic growth this year.
This means all business plans and projections prepared by the private sector for 2020 may have to be overhauled or set aside depending on the attending circumstances.
For now, the most compelling concern for most businesses is the payment of the wages of their employees who were (and continue to be) unable to report for work in compliance with the authorities’ “stay at home” order.To mitigate the adverse effects of forced absence on the company’s funds, the affected employees have been placed on vacation leave or leave without pay depending on the availability of their leave benefits.
Where feasible, some companies have come up with work-from-home arrangements for employees who do not require face-to-face interaction with clients or customers to do their assigned tasks.
Although useful, this work scheme has limited application because not all employees can fit into it and, most importantly, its effectiveness rests on good telephone or internet connection.A more serious problem awaits businesses that stand to be affected by measures that are expected to be imposed by the government after the lockdown is lifted, such as travel restrictions, prohibition on mass gatherings and mandatory social distancing in areas where people congregate.
These businesses include, among others, airlines and their related services, tourist-oriented operations, sports events, stage performances and other activities whose profitability depends on the attendance of a lot of people.
Right now, these businesses ceased or suspended their operations and, as a result, thousands of employees have been rendered jobless.
After the lockdown is lifted and those companies resume operations, there is no assurance all those employees would still have their jobs waiting for them. Chances are, this early, those companies are already discussing the possible downsizing of operations and retrenchment of employees.
It would be futile to seek financial assistance from the government to avert those problems because its priority at present (and rightly so) is helping the people in the D and E levels of our society cope with their loss of livelihood.
In fact, so hard-pressed is the national government on this matter it has called on local government units for assistance.Thus, the businesses that may find themselves in serious financial trouble after the lockdown would be on their own. Their survival or continued operation would rest solely in the hands of their owners or creditors, or both.
They have to find ways and means to sustain their business within the parameters the government is expected to lay down to prevent the recurrence of the virus or its possible variants. The task is not going to be easy. It would require major adjustments in operations, new business models, cost cutting and, where feasible, diversification.
If they can do all that with the least job disruption, they deserve to be placed on a pedestal of honor by their employees. INQ
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