NATIONAL NEWS - The dramatic decline in economic activity in South Africa's major trading partners and drop in international tourism as a result of the coronavirus are expected to have an impact on our economy. Government says in a statement today, 23 March, that decisive measures are being taken to protect the economy against the impact of the Coronavirus.
The statement highlights the following:
• Cabinet is in the process of finalising a comprehensive package of interventions to mitigate the expected impact of COVID-19 on the economy.
• It will consist of fiscal and support measures to help our economy overcome the potentially severe impact on production, the viability of businesses, job retention and job creation.
• Government is working with all social partners through National Economic Development and Labour Council (Nedlac) to ensure there is a co-ordinated approach to protecting the economy.
Government is working to secure our nation’s supply chains.
• We are securing the country’s supply chains to prevent supply disruptions particularly in regards to basic foods and essential products.
• To promote economic activity, our ports remain open to facilitate the movement of goods in and out of the economy.
• South Africa has sufficient domestic industrial capability to supply basic food and goods.
• We are also working to identify alternative suppliers for disinfectants, medical supplies, surgical masks, hospital beds, prefab-style buildings for emergency medical sites.
• There are also plans to fast-track financial support to firms to increase production of supplies of medical and cleaning products required to combat the virus.
• Government is also closely monitoring food prices and we call on the business community to act responsibly and not charge inflated prices during this difficult period.
Government is supporting distressed companies to overcome the tough economic conditions.
• Distressed companies are offered a period of reprieve in contributing to the Unemployment Insurance Fund (UIF).
• The Fund’s Temporary Employer/Employee Relief Scheme will be used to ensure that workers are not laid off.
• In instances where companies decide as a precautionary measure to close for a short period, UIF benefits will be activated.
• If a company contemplates a short-term shut down, they are required to inform the Unemployment Insurance Fund.
• Government will work with Development Finance Institutions to extend company debt repayment terms to soften the economic impact of the virus on businesses.
• There are plans to engage financial sector to introduce longer debt repayment periods, debt servicing payment breaks for companies, and loosen credit extension.
We are supporting all workers affected by the Coronavirus.
• Government will consult social partners to develop a social compact to extend paid sick leave for workers not currently covered by sick leave provisions to a maximum of three weeks.
• All workers who contract the COVID-19 at their places of employment will be supported through the Workmen’s Compensation Fund and Unemployment Insurance Fund (UIF) for sick benefits.
• In an event that an employee is required to be quarantined for longer than 14 days, such leave will be recognised as a special leave and that employee will be eligible to apply for unemployment insurance benefits.
• To further support workers, we plan to extend UIF for up to three months for registered workers who are laid off or quarantined as a result of the Coronavirus.
Companies can play a role is stopping the spread of the virus in the workplace.
• Government appeals to employers to use the prescriptions of the Occupational Health and Safety Act in governing workplaces in relation to the growing Coronavirus pandemic.
• Under the Occupational Health and Safety Act employers have a responsibility to put in place preventative measures including disinfect facilities, especially at large factories and mines.
• Employers are urged to conduct a health and safety risk assessment in consultation with the workers.
• Employers are required to provide necessary protective equipment, mitigation measures and put systems in place to deal with the outbreak.
The Department of Employment and Labour has COVID-19 guidelines to assist South African businesses.
• The guidelines will help employers identify risk levels in the workplace and to determine what appropriate control measures to implement.
• It focuses on the Engineering Controls, Administrative Controls, Safe Work Practices and Personal Protective Equipment. It includes:
o Installing high-efficiency air filters and increasing ventilation rates in the work environment;
o Encouraging sick workers to stay at home, minimising contact among workers, clients and customers by replacing face-to-face meetings with virtual communications;
o Minimising the number of workers on-site at any given time through rotation or shift work and discontinuing nonessential travel;
o Developing emergency communications plans, including a task team for answering workers’ concerns and internet-based communications;
o Provide personal hygiene resources such as no-touch refuse bins, hand soap, alcohol-based hand rubs, disinfectants, and disposable towels; and
o Provide gloves, goggles, face shields, facemasks, gowns, aprons, coats, overalls, hair and shoe covers and respiratory protection when appropriate.
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