WHAT OTHER COUNTRIES ARE DOING
FRANCE
BY PIPPA CRERAR MILLIONS of workers face “financial ruin” unless the Government steps in with a wages bailout, union chiefs have warned.
They fear the coronavirus crisis is poised to send family finances “to the wall”, with millions already living hand to mouth.
Chancellor Rishi Sunak held an emergency meeting with union bosses and business groups yesterday after saying the Government was “working around the clock” on a package of measures – but it is not expected to be published until today or tomorrow.
Sources said ministers were considering a “significant” wage subsidy scheme to support struggling families and help the economy bounce back.
But they added that Treasury officials were still trying to work out how the system would operate.
They are understood to be looking at whether workers should get a minimum threshold, for example £150 per week, or a percentage of their wages.
Ministers are also under pressure to support millions of self-employed workers who will struggle to make ends meet over the next three months.
Former prime minister Gordon Brown has urged the Government to do “considerably more” in the next 48 hours to protect people’s jobs.
After the meeting, TUC general secretary Frances O’Grady said: “As well as providing emergency support to business, it is essential that money goes into workers’ pockets now.
“We must do whatever it takes to stop businesses going to the wall and workers being plunged into poverty.”
GMB general secretary Tim Roache said: “Ministers must not allow workers and their families to go to the wall.
“Huge numbers of people were covering basic living costs on credit even before this crisis struck. Suddenly finding income dry up is already pushing people to the financial brink. Ministers need to guarantee wages.”
At his daily Downing Street press conference, Boris Johnson said companies should think “very carefully” about laying off staff.
He said: “We do want to stand behind companies, we do want to make sure that
Workers promised free rent (or mortgages), gas and electricity and told no company will go under. “Sick leave” payments to parents at home with kids.
White House signalled it wants to give direct payments to citizens. It’s been reported that could be $1000 (£867) each but Treasury Secretary Steven Mnuchin suggested they may be “a bit bigger”.
If employer pays 25 per cent of wages, the state will pay the other 75 per cent up to nearly £30,000 a year – if they promise not to cut staff. Aid period until June 9.
A new short-time working allowance for firms where there is less work for staff to do and generous credit assistance, guarantees or tax deferrals.
Subsidised shorter working week with government halving costs so workers keep 90 per cent of wages.
Full pay for 20 days to those who have been temporarily laid off. people recognise they should stand behind their staff because we, the British Government, are going to stand behind firms.”
The GMB is calling for the Government to follow the lead of other countries in guaranteeing wages.
Some Tory MPs are alarmed by the Government’s lack of action.
Former business secretary Greg Clark urged the Government to pay wages for several weeks “if and only if ” businesses guarantee to keep workers on.
Sir Bernard Jenkin, chair of the Commons liaison committee, added: “Welcome as Tuesday’s package was, it’s simply not going to be enough.”
Tory veteran John Redwood added: “The Government needs to head off many redundancies by offering support to businesses hit by virus closures.”
Even former welfare secretary Iain Duncan Smith said ministers should spend more on Universal Credit. He said: “UC has three basic levers that could all be pulled now to help people who are in work. This could be done today.”