No Work, No Pay, educating bank clients, and paying bills

No Work, No Pay, an encore.

As I told you yesterday, we are now finally on the right track.

Many were paid, and more still waiting for the FASE payout, and the SME grant, via SVB. It will hopefully show up in our bank accounts by Monday. Meanwhile SVB sent out their invoice for April, payable May 15th. Their collection machine never stops.

Before today, May 1st, the Aruba Salary Subsidy Program Proposal was handed to Dutch officials.

That will help private local companies to cover employee salaries for April perhaps, May for sure, probably June, all financed by the grant.

(We want it to be retroactive, from April 1st, but not sure about that.)

At the end of three months, you should expect GOA to run out of money.

Employee salaries will be paid to the employer at 80%, so it is up to the employer to negotiate a wage reduction with his employees, otherwise he is stuck covering that 20%, against a zero income landscape, that seems impossible. So, super important: Negotiate with your people, reach an agreement for pay cuts.

Then what?

GOA will ask for an extension, for more funds from the Netherlands.

Then what?

Our economy will be slow to recover. Things will not bounce back immediately, it will be a slow and hopefully steady uphill effort to get somewhere, and those of you in the private sector, you’d better take a supper-conservative approach to make your resources last longer.

Expect the worst.

Pray for best, but don’t hold your breath, don’t exercise any magical thinking, people will perhaps be a tad reluctant to travel, and they will also be a tad broke, so recovery will be slow.

Thus in three months, with full staff and no work, what will the business community do?

In reality, the salary subsidy delayed their demise by three months. That’s all it did. It prolonged an inevitable expiration.

The silver bullet to this conundrum?

No Work, No Pay.

GOA must allow flexibility in the labor market, companies CANNOT retain complete crews when work is scarce. GOA must introduce flexibility here, and allow employers to dismiss and hire with increasing/decreasing demand.

Otherwise it’s all for naught.

 On the Up side

One of my friends, a top bank executive, reports their senor staffers have been busy restructuring mortgages to reflect a three-month moratorium on payments, extending the maturation date without interest, thank you!!

On the upside: It taught many bank clients to use the online facilities, no more standing in line!   

Report from the front

I was at Setar St. Cruz, reports one of my friends, there was a line outside, 2M distance. A security man spraying sanitizer. We paid at kiosks, no need to wait in line.

Web: The line outside observed 2M distance. The security man at the beginning of line checked our temperature. Another security man at the entrance door sprayed sanitizer. Two working cashiers and one lady asking if you want some more sanitizer, upon departure.

Elmar: Two lines outside observing 2M distance. One for debit cards, one for cash. A security man inside spraying. Once inside you may sit on a chair, one out of just ten. Three working cashiers and one lady sanitizing the counters each time someone leaves.

Why don’t you all switch to kiosks?? Teach your clients to pay on line??!!



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May 01, 2020
Rona Coster