OPENING UP GERMANY: A CASE IN POINT
Germany had a national lockdown that lasted six weeks and is now being gradually lifted. But, a great deal of Germany was never shut down, according to a story in today’s WSJ (May-6) by Tom Fairness. The highlights from that story may tell us what to expect from the gradual re-opening of the US.
There were factories in Germany running at 70% to 80% capacity, and some running full up. “Social distancing, ubiquitous face masks, in-house COVID-19 tests and contact-tracing when employees fell ill” helped companies keep their plants open. In one plant, just 15 of 6700 employees contracted the virus.
Notwithstanding, Germany has registered about 25 % of the deaths of comparably sized neighbors, “though it has roughly the same number of diagnosed infections.” All German factories were given the option to stay open during the pandemic. “More than 80% did so.”
A fair summary of how the Germans approached this would be 1) they followed the China/WHO/CDC social distancing rules regarding distances, touching, protective clothing and hygiene, that is, the rules that are discussed over and over again on this site, and businesses were strict about implementing these rules. 2) they had a lot more testing than the US so they could also trace when an employee fell ill, 3) they organized – “managers involved employees in safety planning” and 4) they watched China and learned from China, their largest trading partner. It is almost that simple, and that hard.
German companies did not just notice China, they proactively learned from China. “A Frankfurt-based manufacturer of Forklifts imported a raft of safety measures from China, where it has five factories and about 4000 employees.”
In some of these cases, revenue shortfalls were in the low single digits. Of course, demand has dropped in Germany like a rock, as it has in all other modern economies.
In four cases randomly offered in Fairness’s article, the rate of infected employees to total employees were .004, .002, .0015, and .002. The article did not disclose whether any sick employees had actually died. Presumably, some did.
The point of all of this is that these factories protected people by assiduously following the guidelines learned from the Chinese experience, and being learned from the US experience, which we choose to call the CDC guidelines: distancing, cleansing – repeatedly, finding ways not to touch certain places, wearing protective masks, and being imaginative in obtaining cleansing supplies and protective materials, even if they needed to produce such protective items themselves. Also, they tested employees, and did tracing if they were found to be positive for the virus.
The biggest companies in the United States will probably be just as vigorous in protecting their people. I have no doubt about this. The problem in the US is going to be small businesses, which hire 45-50% of American workers. For them it will be harder. For this reason, we cannot repeat too many times, as publicly as we can say it, “follow the CDC rules. You can still be productive. You’ll be surprised. And you’ll save lives.”
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Starting up the US Economy: Comments and Ideas From US Business Person
1.Testing people going back to work is key, but once people go back to work they should be issued a smart card that is used to identify each employee, carry their testing record and use it to test on a periodic , say weekly, basis until the virus has passed. This would enable them to visit multiple work sites and also possibly be used at other non-work testing sites (see next point)
2.Following on number one, develop a national on-line secure database and communication system like the credit/debit card systems. This would enable retail establishments and others to check each person’s card when entering an establishment to see what their health condition is. Virtually every establishment has a POS terminal which could be slightly repurposed to capture and send information to enable decisions to be made regarding the entry into an establishment. Of course, people with privacy concerns would raise objections but since this is a temporary situation, the concerns could be overcome
3. The publishing of sanitary cleaning rules should be made:
– How often can gloves and masks be used?
– What is the best way to clean and reuse the gloves and masks?
4. Masks are great, but they do not cover the eyes. I am one that cannot stop touching my eyes and face above the mask to deal with an itch. Can masks be made with simple clear material to attach to them above the mask to deal with this problem?
5. To improve social distancing in the near term, how about having companies restructure their workflows to enable the company to have 2 or 3 shifts? This way everyone would still come into work, but their workspace could be restructured to allow for social distancing.
6. Communication by email is great, but as you mention, the tone of an email cannot be deciphered, therefore more reliance on video 2-way communication should be the way to go.
7. Positive and negative incentives should be established during the start back to work period. My observation to date during my limited time out of the house is that about 25% of the people I encounter are not adhering to the guidelines issued by the coronavirus task force. Maybe fines should be given at some point for violators?
8. Make wearing of reusable masks, gloves and plastic glasses mandatory and provide them to everyone.
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Helping People Stay Afloat Until They Get Back To Work
We are an accounting firm with a heavy tax practice, serving people of varying income levels. This is about how we have immediately changed our business focus.
We quickly announced that we would not be seeing clients face to face and that our offices would be open only at limited times. However, we also informed our clients that we were putting every one of them on a six-month tax extension, pushing the end date for tax completion into the Fall.
Then we focused on what was of immediate importance for our clients, namely, taking advantage of the pandemic economic relief bill just passed by Congress. We decided that getting this kind of information into our client’s hands, simplified and quickly, including a process by which they could apply, was the best service we could offer right now.
We looked at three parts of the bill: the stimulus rebate; the payroll protection program (PPP), and EIDL (Economic Injury and Disaster Loans).
The stimulus rebate pays tax credits in advance. In general, families can receive close to $3000. Importantly, they must have filed at least a 2018 tax return. 2019 return is better. This requirement may not apply if you are on Social Security. Obviously, the point is, they need to know how to find you. Payments will go out as Direct Deposit, checks, or perhaps even cash transfer programs such as Zelle. (Not available yet. But the government is working with the big banks on this method.) We have set up the application process for our clients.
The PPP loans for businesses having 500 or fewer employees will cover up to eight weeks of payroll cost, including benefits, mortgage costs, rent, and utilities. In order for the loan to be forgiven, 75% must go to cover payroll costs. No payments for six months. No collateral or personal guarantees required. The program starts April 3, and April 10 for independent contractors. You can apply for these loans from any Federally Insured Depository Institution, i.e., your bank. We have given them a method for making an instant application.
The EIDL loans are more typical loans with the Small Business Administration. You can apply for an immediate loan up to $10,000, available within three days of final application, which will not have to be repaid. This is not typical. Beyond that, you can borrow up to $2 million, at 3.75% interests, with terms as long as thirty years. Again, we set up an application process for our clients.
As you would assume, there are constraints against double dipping in both the PPP and the EIDL, specifically as it relates to cash grants. At the same time, there are other ways you can tie these two programs together that can be helpful.
The final program we explained is the Pandemic Unemployment Assistance (PUA), which is constructed to help people who are independent contractors and self-employed, what some call the GIG economy. In one case, (PUC) you can get an extra $600 a week of unemployment payments through July 31. The other program, PEUC, extends unemployment assistance for 13 weeks beyond what the State provides. Application generally must go through the State unemployment insurance office, and might be a bit cumbersome, given current overload.
This is how we have repositioned our practice to deal with the immediate needs of COVID-19
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Reengineering My Company To Respond To COVIS-19 Market Needs
MADE IN THE USA MEANS MORE THAN EVER
Over the past two months, the United States has become just that – UNITED.
Working together – and staying apart – each of us has done our part to fight the most pervasive and existential threat since 9/11. And like those dark days, the light has come from the collective strength of millions of individual American heroes, each of whom have risked their own safety to face this enemy head on.
Why? Because that is what Americans do.
When there is call for action, we act. Not for glory, but because it is right.
As a small manufacturer based in Arizona, I have never been prouder of my team and my country. Without hesitation, each has continued to come to work every day and do their part to produce as many essential items as we can – while staying apart and making other adjustments consistent with CDC guidelines
.I recall learning in school that during World War II, companies big and small retooled and found solutions to make an impact. That has always resonated with me and I knew that if our country ever found itself in a similar situation and I had the opportunity, I would want to step up and make a difference. My team agreed.
Over many days that stretched into weeks, we invested in new equipment, secured federal licenses and transformed our skin care manufacturing company into a producer of hand sanitizers. It has been both energizing and exhausting, but in my 30-year career I have never been prouder.
Over the recent days, I have noticed that Chinese imports are beginning to trickle back onto our shores. They are beginning to flood the supply chains with products at costs that are designed to undercut American suppliers and workers who have done the right thing, while sacrificing during this time.
This is not just Chinese companies selling finished goods to US consumers (directly or via companies like Amazon, etc.), but also US companies buying finished goods from China or other foreign countries when such products are available here.
I am not naïve to the realities of the global economy, nor am I intending to disparage Chinese or foreign manufacturers. This is a call to action for consumers and companies like mine – and those partners with whom we have been working day and night to meet their supply needs during these unprecedented times. In this moment, as we are all united in this fight, if there is an option to purchase products made or assembled in the USA – now more than ever is the time to do that.
We did not choose this enemy.
We did not choose this war.
But how we choose to act will make all the difference.
ASK WHERE PRODUCTS ARE MADE.
LOOK FOR PRODUCTS MADE or ASSEMBLED IN THE USA.
SUPPORT USA WORKERS.
