The quarantine has ended, but some have fallen: the business has not ended 15MAX



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After the quarantine that ended in mid-June, the number of companies that allow workers to have downtime is growing.

State labor inspections 15 minutes According to the data provided, on June 17, the first post-quarantine companies with valid downtime were 881.

On July 1, the number of companies that laid off workers reached 687.

It is not expected that everything will return to the pre-quarantine level immediately.

These companies are still rescued by state support. At the beginning of the quarantine, Seimas decided to pay state subsidies to companies that have declared downtime, covering a part of the employees’ wages.

Towards the end of the quarantine and seeing that some companies would have difficulties after the end of the regime, the authorities decided to subsidize the business in this way also during an emergency.

“We should not expect everything to return to the pre-quarantine level immediately.” 15 minutes said the economist Indrė Genytė-Pikčienė. “Businesses also need time to return to their previous pace from a period when they lived with almost no income.”

Photo by Josvydas Elinskas / 15min / Indė Genytė-Pikčienė

Photo by Josvydas Elinskas / 15min / Indė Genytė-Pikčienė

He also said that post-quarantine trade problems may also be related to changes in the consumption habits of the population.

According to I. Genytė-Pikčienė, the activities most affected by the quarantine were activities that could not exist without direct contact and mass meeting places, such as creative businesses, entertainment, as well as the tourism sector: travel agencies, hotels, restaurants.

According to her, private health-related institutions will also face problems due to the sharp increase in regulation during the pandemic, as well as other companies that provide non-essential services.

Carriers transporting cargo east – at downtime

The reduction of cargo flow to the East damaged Daimanta, a company established in 1991 and which provides transportation, logistics and forwarding services.

Photo by Lukas Balandis / 15min / Trucks at the Medininkai border post

Photo by Lukas Balandis / 15min / Trucks at the Medininkai border post

A company with 30 employees applies downtime to about a quarter, 15 minutes said Dainius Abramavičius, director of the company.

According to him, company employees transport a large amount of cargo to Russia, Kazakhstan or Uzbekistan, where the coronavirus has not yet stopped spreading significantly.

“Quarantine is still at its peak or has peaked. Most customers today have their hands tied and simply do not work or work at a much slower rate,” said D. Abramavičius.

“As a result, the burden is decreasing, and so is the need for workers,” he added.

Photo by Irmantas Gelūnas / 15min / Dainius Abramavičius

Photo by Irmantas Gelūnas / 15min / Dainius Abramavičius

According to D. Abramavičius, during the peak of the coronavirus pandemic in Lithuania, the company’s cargo quantity had decreased by 35%, and now the decrease reaches 20% compared to normal times.

The businessman said he was considering using state support for the business when applying for a loan, but ultimately decided to seek to survive on wage subsidies during downtime.

But how long will it be difficult, admits the businessman, not knowing: “It can be half a year, or maybe even a whole year.”

Construction projects had to be postponed

The consequences of the pandemic are felt even by the main players in the real estate market, even after the quarantine. Mitnija, a construction company owned by the MG Baltic company, has currently laid off 10 workers.

Photo by Irmantas Gelūnas / 15min /

Photo by Irmantas Gelūnas / 15min / “Mitnija”

It is true that the company’s engineering and administrative staff work normally. Mitnija employs a total of 320 people.

Company spokesman Audrius Valatkevičius 15 minutes He said ten workers had to be idled due to delays in new construction projects.

“Our existing orders have not been affected, we are implementing them according to the agreed conditions, but we still feel the caution of the investors, the doubts about starting new real estate development projects,” said A. Valatkevičius.

Mitnija estimates that the coronavirus pandemic will reduce the company’s revenue by one tenth less than last year’s € 109 million.

The company does not predict how long the impact of the pandemic will last, but notes a slight return to confidence in the market.

“We hope that the mood will continue to improve,” said a Mitnija representative.

Orthopedic headache

At Ortofabrike, which produces orthopedic shoes and insoles, all 20 workers have been idle, as during most quarantines.

This company makes orthopedic equipment for stores that sell it later. According to Donatas Valinčius, director of Ortofabrikas, the flow of customers in these stores has not returned to the previous level, therefore, the company receives much less for the production of orders.

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