The future president of the Union of Enterprises (UEL) is calling on the government to announce a potential lockdown as far in advance as possible.
As the idea of a new hard lockdown is being floated, employers are facing severe challenges. In light of this, the future UEL president, Michel Reckinger, is asking the government to set out their plans as soon as possible. Should a new lockdown be introduced, business need swift financial help.
Reckinger, who is the manager of a sizeable manufacturing business, emphasises how businesses naturally prefer to be able to continue working.
During the first lockdown earlier this year many firms were able to survive thanks to their savings and swift state aid. More of the same will be needed in the event of a second lockdown, according to Reckinger.
He highlights how state advances on part-time working proved very helpful back in March. This secured the necessary cash-flow needed to pay up salaries and other costs. However, this has since changed and now business need to apply for state aid, which is only given to them at a later stage. Reckinger insists that that money needs be transferred to businesses more quickly. Many companies will not survive routine payment delays of up to three months, according to the UEL president.
Reckinger is also the president of the federation of manufacturers. He points out that it is essential for struggling business – of which there are several in this sector – to know far enough in advance what kind of state aid they can receive and when they can expect to receive it. This is why he is calling on the government to set out their plans regarding a new lockdown far enough in advance, so businesses can make the necessary arrangements.
He says that it is important to know what businesses are allowed to remain open and which one are ordered to close. He is reminding people of garages that were initially asked to close in March, yet at the same time the government allowed people to change their tyres. It is of the utmost importance to inform business owners of the new restrictions, so they can take the appropriate steps.
That being said, there is no widespread anger amongst the business community. Most manufacturing companies are closed over the Christmas break or operate at a lower capacity anyway. Reckinger estimates that after the Christmas rush retail will calm down, too.
He says that it certainly advisable to introduce new restrictions now and to keep them for two to three weeks. The school break could be extended, too. Business would be able to adjust better this way as opposed to asking them to close sometime in January or in February.
If there has to be a new hard lockdown, it has to be now, according to the future UEL president.
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