This archive report was first published on 22 April 2020.
COVID-19 Pandemic Presents Delicate Balance of Employee and Business Interests ¶
With the COVID-19 pandemic spreading rapidly across the globe, businesses in Africa and beyond are facing a daunting task: balancing the welfare of their employees with the need to stay afloat.
On one hand, the pandemic has disrupted businesses, painting a bleak economic outlook for the short to long term. Pay cuts and layoffs are being considered to slash running costs and stay afloat. On the other hand, companies must consider the welfare of their staff, who derive livelihoods from the firm and would be impacted by the layoffs.
Philip Morris International has taken a bold stance, promising employment security, financial stability, and special recognition to its staff. The company has announced that there will be no termination of employment during the crisis and all planned restructuring has been put on hold. Staff have also been assured of compensation during this period, irrespective of their ability to deliver on their duties.
Khady M.N.Sarr, Human Resources Director, Sub Saharan African Region, Philip Morris International, said, “It is precisely in such difficult and unprecedented circumstances that as an employer we need to stick together with our employees. Whatever the impact of the COVID 19 crisis will have on our business, we commit not to terminate any employment and to continue paying salaries whether or not our colleagues can fulfill their professional obligations. People are our greatest assets and here we are putting our money where our mouth is”.
Other companies, such as Unilever and MTN Group, have also taken steps to protect their workforce. Unilever has committed to protect its employees from sudden drops in pay for up to three months, while MTN Group has raised a Sh225 million (R40 million) Global Staff Emergency Fund to support those worst affected by the pandemic.
However, many businesses have had to rely on measures by governments to cushion them from the effects of the pandemic and safeguard the livelihoods of their staff. This has ranged from stimulus packages, tax relief, restructuring of credit, and concessional financing.
As the pandemic continues to spread, businesses must strike a delicate balance between their employees' welfare and their own long-term interests. It is a good time for companies to demonstrate that they truly care about the welfare of their staff in their times of desperation.
