Employers’ steps out of the Covid-19 emergency

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On this page, we have gathered together topical and relevant information on the emergency situation, especially for businesses. You’ll find useful material and up-to-date news, so you can plan your company’s activities accordingly.

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Leader of the Employers’ Council: the crisis also highlighted the bottlenecks in industrial relations

At the tripartite social partners’ meeting at Stenbock House on Tuesday, employers, alongside the economic situation caused by COVID-19, put on the table a proposal to allow part-time workers to work flexible hours. This will create the conditions for more people to be employed, which is crucial in this time of recession and rising unemployment.

“The issue of time recording has been inspired by feedback from employees. The crisis highlighted the fact that there are many agency contracts in use, under which people who work are not receiving wage subsidies or other social protection measures. The aim is to reduce the number of such contracts,” said Kai Realo, chairwoman of the council of the Estonian Employers’ Confederation. “It would give employers the opportunity to react quickly to additional labour needs and to balance the workload of their employees, meaning that full-time workers would not have to work so much overtime,” she added.

The idea is to first test the solution for people working on a timetable in the retail sector, and then apply it to other sectors. According to Kai Realo, the issue has already been discussed with the trade unions and there is common ground. At the meeting, Social Affairs Minister Tanel Kiik confirmed that once employers and trade unions have agreed on the issue, he is ready to submit the pilot project proposal to the government.

For Kai Realo, who runs Circle-K Estonia, a day-to-day retail business, the crisis has taught him a number of lessons. “Health crises can happen again, but they shouldn’t happen again, like the economic shutdown that closed down most retail and service businesses for two months,” said Realo, who is also on the board of the Estonian Traders’ Association. “To prevent this from happening, it makes sense for both the state and businesses to prepare today. Starting by stocking up on sufficient protection and disinfecting products. We have been discussing the idea of formulating a common code of conduct so that work can continue in an emergency,” he said.

Speaking about the effects of the crisis caused by COVID-19 and the concerns of business, Arto Aas, CEO of the Confederation of Employers, said, “It is important that the state also comes up with a second wave of measures to alleviate the economic crisis, in order to support those employers who will be hit by the crisis in the second half of the year. This is especially true for the manufacturing and construction sectors, but also for trade and tourism, which will not recover overnight once the restrictions are lifted,” Aas said. He said the wage support measure would need to be extended for at least another few months.

“The Unemployment Insurance Fund’s wage subsidy is the quickest and most tangible support measure to date to help businesses cover labour costs and keep jobs. However, it is clear that the Unemployment Fund’s reserves are melting away like snow that fell a few days ago and we need to think about how and under what conditions the support measure could be extended. It is important that the state comes to the rescue with its own resources,” he said.

The second issue Aas raised was the potential investments of the country. “The state is an important customer for the construction sector and every message the government gives carries a lot of weight. If public investment continues even during a recession, jobs will be safeguarded and tax revenue will flow into the treasury.”

At the invitation of the Prime Minister, members of the Government, the Estonian Employers’ Confederation and the Estonian Trade Union Confederation attended the tripartite meeting of the social partners. At the meeting, economic recovery measures and the action plan in the context of the COVID-19 crisis were discussed, as well as the need for flexible working hours in trade.