NHO demands compensation for liquor ban

The new intrusive infection control measures that Prime Minister Erna Solberg unveiled on Sunday should be followed immediately with better compensation schemes, demands the Confederation of Norwegian Companies (NHO).

– We understand the need for infection control measures, but the consequence is that unforeseen costs rebound on tourism businesses. When the state introduces such intrusive measures overnight, the state must also bear a larger share of the costs, says Director Kristin Krohn Devold at NHO Reiseliv.

In addition to the compensation scheme, NHO believes that the state should cover the employer’s wage obligation period and extend the layoff period.

Advertiser content

It can save you thousands

Affects many

NHO CEO Ole Erik Almlid agrees:

– We register that the authorities are concerned about the spread of the infection after Christmas. It also concerns NHO and the business community. The new government measures affect many companies, especially in the tourism industry, says Almlid.

Introduces the national liquor ban

Infection control measures must be accompanied by compensatory measures, he emphasizes:

– We must avoid having a development that leads us to lose control of the infection. In that case, it could further affect the business community. What is very important now is that the authorities establish good and accurate compensation schemes that can guarantee and save healthy companies, says Almlid.

I already hit hard

Krohn Devold notes that the new measures affect the entire tourism industry, but especially a catering and accommodation industry that is already badly affected.

The national prohibition of alcoholic beverages means in practice a closure for many companies, emphasizes the director of tourism.

In general terms, we are talking about 100,000 jobs that are directly and indirectly affected by the prohibition of alcoholic beverages. Alcohol is an important part of the income base. And these companies are already singing the last verse. Capital has been used up. Now it is not profitable, he tells Børsen.

NHO will work toward an amendment to the law that automatically reduces the employer’s wage obligation period from ten to two days when new infection control measures are in place that effectively shut down entire industries.

Advertiser content

It can save you thousands

– It is not reasonable that companies that have to lay off after the authorities’ measures are left with such high wage costs, Krohn Devold tells Børsen.

Immediate action

Such a change in the law will necessarily take time, acknowledges the director of tourism. Therefore, NHO believes in the first instance that the employer’s pay period should immediately be considered a fixed cost, so that it is covered by the existing compensation scheme.

All in all, the tourism director highlights five immediate measures that NHO believes should be implemented:

Alarm: 35,000 jobs at risk

• The compensation scheme should be expanded while tourism is affected by infection control measures, and at least until the summer.
• The compensation scheme should be expanded to include more costs than at present, such as costs related to raw materials / inventory and infection control measures. Furthermore, viable companies that have been left out of the scheme must also be compensated.
• The employer’s pay period should be shortened from ten to two days. Also, the five mandatory pay days in period two should be eliminated entirely.
• The rest period should extend beyond 52 weeks, and at least into the summer.
• The wage subsidy scheme must be improved.

Børsen has asked Trade and Industry Minister Iselin Nybø (V) and Finance Minister Jan Tore Sanner (H) for a comment on the requirements and criticism.