Only a quarter of chief executive officers (CEOs) in the United States have furloughed their workers because of the coronavirus outbreak with many saying that such a move was unnecessary.
22.6 per cent of CEOs in the world’s largest economy said they have furloughed and laid-off workers, according to Fortune 500.
In addition, 21.4 per cent of the CEOs said they have laid off less than 10 per cent of their workers while the majority, or 48.8 per cent, said they have not reduced their workforce at all.
A small minority (7.1 per cent) even said employment has actually increased.
In terms of business risk, 97.2 per cent of them said keeping employees safe and productively employed is the management’s top concerns in the current environment.
73.2 per cent of them said the impact on customers and uncertainty over business continuity or vulnerability is another major risk while 63.9 per cent said uncertainty over demand is also a concern.
Thailand
In Thailand, the National Economic and Social Development Council (NESDC) estimated that more than 8.4 million people are at risk of losing their jobs in 2020 because of the outbreak.
The private sector, namely the Joint Standing Committee on Commerce, Industry and Banking, has a lower estimate of 7.1 million.
The Federation of Thai Industries pointed out that the groups of workers that are most vulnerable are workers in hotels and restaurants, followed by retail, wholesale, manufacturing, transport and construction sectors, respectively.
Many top hotels in Thailand have chosen to reduce the salary of their employees but some have still let people go to stay afloat, especially businesses that depend on foreign tourists.
Due to the pandemic, the occupancy rate has dropped to zero in some hotels over the past three months.
More than one hundred hotels in Bangkok have chosen to temporarily close down during March, April and May, leaving 10,000 people without a job because of it.
MINT
After reporting a net loss of 1.77 billion baht in the first quarter of 2020, Minor International (MINT) has yet to announce any furlough plans.
The net loss in the first quarter for a group with 529 hotels in 56 countries is hefty when compared to their profit of 583.14 million baht in the same period in 2019.
The hotel and food group is now planning to raise 25 billion baht through perpetual bonds, three-year warrants and a rights issue to cover the losses.
“Going into the second quarter, MINT’s financial performance will be further impacted, due to the temporary closures of hotels and dine-in restaurants beginning in March 2020,” the company said in a statement on May 18.
“As such, MINT’s immediate priority has been to preserve cash flow and liquidity,” they added.
They said they have chosen to maintain cash and reduce outflows across all three business units and across all geographies via “cost reduction initiatives, including in the areas of payroll, rental and other operating costs.”
However, Thai Enquirer has seen MINT’s presentation for June 2020 which reported that the group’s “headcount” was reduced by approximately 60 per cent during the outbreak.
In addition, its executives have also seen their wages reduced – up to 60 per cent in some cases.
Apart from owning 529 hotels, the group is also one of the region’s largest restaurant conglomerate with over 2,300 outlets in 26 countries.
As shown in the report, MINT hired more than 80,000 employees before the outbreak. Around 28 per cent (22,400) were part-time workers. They were, however, the first to be laid off.
For full-time workers, 17 per cent (13,600) of them have been permanently let go while 14 per cent (11,200) are temporarily out of a job and are now waiting for MINT’s hotels and restaurants to reopen.
In total, MINT has already laid off more than 47,200 workers and at least 36,000 permanently.
