The government stimulus package for the year 2020 will help prevent a total economic fallout after the coronavirus outbreak wreaks havoc on the stock market this week. The fiscal policy, which could be around $10 billion, will include one-time payments for pensioners, small business owners, and Newstart recipients to prevent job loss and continue the market cash flow.
Scott Morrison, the Australian PM, expresses that the package will be temporary, contingent, and aptly designed to preserve budget integrity and keep the economy afloat. He said that seven core principles would guide the policy enactment, helping maximise the weight of economic measures to ensure the Australian public of their livelihoods in these challenging times.
With the government stimulus package, the Prime Minister is confident that this will restore the fiscal position, payback after the economy recovers, and prevent extra spending for governments in the future. He emphasises that the government must not waste the resources of taxpayers.
Big businesses are significant players in the process for economic recovery, he adds. He encourages business leaders to keep employees, invest, and provide sick leave benefits when workers are not entitled to such. He calls this one moment of national interest.
Morrison conveys that now the government has a single goal: to protect the welfare, including jobs of all Australians who are affected the most by this global epidemic. He ensures everyone that the country will be in a good position once the economy bounces back to recovery.
The Australian Council of Trade Unions raises their concerns over the 3.3 million employees who are under casual working status. They say if businesses close because of the coronavirus, these workers will not be entitled to paid sick leave.
Hence, Morrison urges all business leaders to support staff in all types of employment status: casual, part-time, or full-time, and keep them employed until the economic recovery. He further encourages these companies to pay workers and their suppliers ahead of time instead of on time.
Businesses must support employees, customers, and suppliers for the next six months, and even over a year, he implies. Saying it will show what the company’s brand integrity and corporate values are; and what the organisation is about more than anything else. He also claims to do it for patriotism on top of common sense, perseverance, and commitment during these trying times.
Greg Foran, Air New Zealand CEO, and Alan Joyce, Qantas CEO, have looked into ways to curb the impact of the viral outbreak over their businesses. They both reveal that they will deny themselves part of their salary to help their workers keep their jobs.
This morning, Joyce, announced he would not be taking his paycheque until the 1st of July. On the other hand, Foran proclaimed yesterday that he would take a 15 percent cut off his $1.65 million paycheque, amounting to around $250,000.
With the example of these business leaders, and the government stimulus package on its way, more and more business owners will become confident in holding on to their employees for now.