Thousands of workers in downtime – starting today, numbers will go up

There were 4,932 companies with downtime in effect on Monday, and the downtime was 33,000 and 610 employees, the State Labor Inspectorate (VDI) said. For comparison, during the spring quarantine, the numbers were 3-4 times higher, 160,000 workers were in downtime in March.

Consequently, the grants cost the state € 62 million in April, and the amounts have increased tenfold in recent months.

“From April. To December 10. 172.04 million. EUR were disbursed. Per month average allowance per month. 21.3 million Eur”, informed Milda Jankauskaitė, representative of the Employment Service.

Each downtime employee contributes about a quarter of a hundred euros a month to the budget.

The commercial representatives explain that the business was operating before there was a restriction; everything will change from Wednesday.

The SLI also found violations that employers abuse: After receiving subsidies, they continued to send employees to work. Inspections of such complaints will be carried out despite the pandemic.

It is even more expensive for the state to support employers in keeping jobs. More than 418 million were allocated for this year. euros.

The number of downtimes is determined by the relevant restrictions

Among workers dispatched outside of downtime, one in three businesses operates in the wholesale and retail sector, as well as auto and motorcycle repair, 11 percent. The companies are in the accommodation and restaurant services sector, 10% – manufacturing, according to data from the Employment Service.

Most of the workers were sent to downtime during the first quarantine.

Since then, the company that has sent the most downtime since the beginning of the pandemic is PKC Group Lithuania, which specializes in the production of electrical equipment for commercial trucks: 1,035 employees. Amber Food, which operates Charlie Pizza, and other restaurants continue to line up: 827. Bread and cake maker Mantinga has sent 810 employees into downtime.

The SLI notes that as of early December, most of the companies with existing downtime were in the hospitality and restaurant industry. 973 companies in this sector have declared downtime, their employees represent 38 percent. all employees who have been declared inactive.

“The second largest downtime is the wholesale and retail sector. Here, 922 companies have announced downtime, employing 14% of them. All workers in downtime. The manufacturing sector continues in the ranking, with 340 companies declaring downtime for their employees. 9.5 percent work in this sector. due to non-compliance with all job functions due to downtime, “VDI reported.

Also a significant part is made up of companies in the arts, entertainment and recreation sector, where 289 companies have valid downtime.

Romanovsky: The numbers will go up

The president of the Lithuanian Business Confederation explains that so far there has been little downtime, because companies have not stopped operating, even restaurants have offered to bring food.

“Until now, only bars and clubs have restricted their activities or closed them completely. And in many places, relative to the relative scope of the restrictions, activities continued: a large number of restaurants are operating and offer take-out. It was not a complete closure of the business, ”explains A. Ramanauskas.

Compare that the situation will fundamentally change on Wednesday, because by then the quarantine regime will already be similar to that of spring.

“I have no doubt that it will grow from Wednesday. Imagine that all Senukai, Ikea, Zara, H&M, the entire Apranga Group and other large retailers are closing. I think it will explode in a couple of days, ”explains A. Romanovskis.

Next year he will subsidize downtime, but he will not work after them

Subsidies to workers on the job will continue to be paid next year, reports the Employment Service.

“The supported employment measures will also subsidize employers who hire job seekers registered with the Employment Service. In the supported employment measures, the possible amounts of the salary subsidy will change: they can receive 50%, 60%. or 75%, depending on the support characteristic of the hiring of the unemployed ”, says the Employment Service.

However, the subsidy will end after some downtime and for businesses included on the STI-approved COVID Victim List.

Statistics from the Employment Service now show that allowances during downtime are several times lower than subsequent allowances. In January-October, 170 million inactivity benefits were paid. At that time, after the downtime, the employers raised at least 419 million euros from the budget. EUR: This amount does not include companies with less than three employees.

Employers have come up with the idea of ​​posting partial downtime

In July-September, VDI carried out 193 unscheduled inspections and special checks were carried out on the legality of downtime. Violations were detected in 17 companies in the manufacturing, catering, transportation, medical and retail sectors.

“During the campaign, most of the violations detected by the SLI were related to the announcement of partial downtime. For example, the start and end times of employees who have been declared part-time are not specified, the extent to which the employees’ working hours are reduced is not specified, in which case it is not clear whether the employee should work at a certain time, whether it involves downtime or possible employer abuse. “, Explains VDI Communications Advisor J. Kažukauskaitė-Sarnickienė Communications Advisor

He confirmed that the VDI had also identified cases in which displaced workers continued to work.

“These cases were detected at the beginning of the quarantine. After verifying the information received that the employees who have been declared inactive are working, violations were recorded at the Kaunas and Mažeikiai companies. At the companies during the inspection, some of the employees who were declared inactive performed work functions. Minutes of administrative misconduct and fines were drawn up for employers for the infractions identified “, explains the representative of VDI.

If the SLI receives a complaint about the manifestations of illegal work, work during downtime, conducts inspections; After the quarantine announcement, investigations are carried out remotely into violations of labor law, occupational safety and health.

“In cases where complaints and reports of possible manifestations of illegal work are received, inspections will be carried out at the exit of the inspection site. However, information related to downtime, such as downtime, will be answered and verified. There are currently no complaints about downtime, “explains VDI.

Although the activities have not stopped, they receive help

The Employment Service adds that during the pandemic, when state financial assistance was provided, there were cases in which companies changed their contracts, from fixed term to indefinite, when the percentage of wage subsidies decreased to 30, downtime was announced again .

“Employers can also use the allowances by hiring employees only during the allowance period. Partial downtime is advertised over several days or hours to take advantage of the allowances after the downtime. A significant portion of the allowance after time recipients of inactivity is made up of companies included in the list of victims of COVID approved by the STI, although in reality it did not stop their activities and did not allow people to do downtime, “says the service.

The Employment Service also finds cases in which, during the subsidy payment period, employees are fired when the intensity of the support decreases and instead employees are replaced in the list of employees receiving higher pay. high.

Appreciate that support delays issues

Data analytics company Scorify in November. In the review of the situation of the companies, they assessed that at the beginning of the second quarantine, the companies stagnated: the number of employees decreased, downtime increased, but the debts with Sodra decreased.

Number of employees in November continued to decline – 1.1 percent. compared to October. Sodra’s debt decreased 1.45% during the month.

Žilvinas Milerius, director of Scorify, estimates that the situation of the companies has stabilized in summer and autumn, but in November their ratings deteriorated again. In November, 40 percent. corporate ratings have deteriorated compared to last year. 4 percentage points to 9 percent. The number of companies with lower risk decreased, the average risk of bankruptcy increased by 7 percentage points to 43%.

State support has reduced the risk for companies, but it has another effect.

“These solutions only carry the problems of the companies to the following periods, when it will be necessary to start paying the arrears,” says Ž. Milerius on the impact of tax deferral on business risk. “And these business problems will continue to accumulate: The number of companies reporting downtime has been increasing during November, there were 3,800 by mid-month, but their number is likely to continue to grow.”