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Managing the fallout of Covid-19

You will find here all the Planet Labor articles covering the initiatives of public authorities and social partners as they seek to manage the economic and social repercussions of the coronavirus outbreak.

20 March 2020
Denmark: measures to provide support for businesses and employees during the coronavirus crisis
On 19 March, the Danish parliament passed a DKR 40 billion package of measures to provide support for Danish businesses and their staff. In it are several economic measures such as compensation for a certain number of fixed costs that corporates have to sustain, even though they may have to close, as well as loan extension guarantees for SMEs. The package also takes up provisions that have been formerly negotiated with the social partners, which will enable struggling businesses to abstain from making staff...
Managing the fallout of Covid-19
20 March 2020
Netherlands: special Covid-19 short-time working scheme introduced
The Temporary Emergency Bridging Measure for Sustained Employment, which has been given the Dutch acronym NOW, was introduced on 17 March, the same day that the government announced a package of measures to tackle the coronavirus crisis. NOW replaces the short-time working scheme that had been in force and provides for compensation, paid by the state, which varies according to the loss of turnover experienced: 90% of salary if the loss is 100%; 45% to cover a 50% loss; 22.5% of salary if the loss is 25%. Upon...
Managing the fallout of Covid-19
20 March 2020
Hungary: government announces measures to support economy
The Hungarian government has adopted several measures over the past 10 days following the state of emergency being declared in the country, which allows the government to introduce extraordinary measures. On Wednesday 18 March, prime minister Viktor Orbán announced a series of economic measures to support businesses, including exemption from social security contributions during this period for the sectors most affected by the pandemic, such as tourism, restaurants, entertainment venues, sports, cultural services...
Managing the fallout of Covid-19
20 March 2020
France: agreement reached to ensure production activity continues at STMicroelectronics
The majority agreement signed on 18 March with two of the three trade unions (CFDT and CFE-CGC) at the semiconductor manufacturing company temporarily adapts business activity in the context of the containment measures introduced by public authorities one week ago. This text allows five of the firm’s industrial sites to reduce their workforce by up to half over the period from 19 March to 2 April 2020, without any loss of present or future salary because “the rest days that would be imposed during the...
Managing the fallout of Covid-19
20 March 2020
Spain: Inditex group to cover for one month the cost of employees having to stop work
The Inditex group, which owns fashion retailers such as Zara, has announced to unions and employee representatives that it will not, at present, activate the extraordinary short-time working mechanism that allows it to benefit from extraordinary state aid to cope with the decline in business activities. The group plans to keep paying the wages of its employees in full until 15 April, despite stores closing and sales coming to a halt amid the coronavirus outbreak. This announcement concerns the 25,000 employees at...
Managing the fallout of Covid-19
20 March 2020
Workday takes measures to help employees around the world better cope with the coronavirus crisis
The US HR software company Workday announced on its blog on 16 March that its some 10,000 workers would receive a one-off payment, equivalent to two weeks’ wages, to help them deal with the repercussions of the coronavirus outbreak. This measure, which will cost the company around $80 million (€73.3m), concerns all employees, except for executives. Payment is expected to be made by 30 April. A special fund to help those employees most in difficulty will also be created. Also as part of efforts to limit the...
Managing the fallout of Covid-19
19 March 2020
France: emergency draft legislation containing work-related measures to cope with the Covid-19 crisis
On 18 March the Council of Ministers adopted an ‘Emergency bill to deal with the Covid-19 epidemic’, that empowers the government by way of ordinances to take interim measures that will ‘limit the cessation of business activities (…) and employment dismissal,’ which concern not only part-time unemployment, but also give employers more resources to impose or modify the taking of leave periods and also to derogate from the Labour Code and collective agreements as concerns the right to rest periods. The...
Managing the fallout of Covid-19
19 March 2020
Italy: banking sector employers pitted against trade unions over bank branch closures
On 16 March 2020 Italy’s banking sector social partners signed a protocol document to combat the coronavirus and protect both workers and customers. While the sector’s trade unions were calling for total branch closures for a period of two weeks, the executive committee of the employers’ body, the Associazione Bancaria Italiana (ABI), which met on 18 March, opted for an intermediate response involving a sharp reduction in customer access to the branch offices. Trade unions are ready to take action and are...
Managing the fallout of Covid-19
19 March 2020
Germany: government and social partners cognizant of problems with partial unemployment in non-industrial sectors
As more or less indicated by Chancellor Angela Merkel in a televised broadcast on 18 March, Germany is on the brink of a total confinement phase, (with its Federal constitution, any ultimate Federal State decision instigating confinement means the Länders, as they hold sovereignty, will be tasked with implementing the conditions). One after the other, Germany’s big auto producers and sub-contractors have been closing their German and European facilities, initially for between one and three weeks. The Ministers...
Managing the fallout of Covid-19