How companies are adapting to coronavirus pandemic

The emergence of the novel coronavirus has led to an unprecedented universal sabbatical from common human behaviour.

It is now ‘illegal’ to shake hands or to even sit close to people we would often snuggle close to. Workplaces have not been spared either. Companies have had to find ways to adapt to the scourge of the pandemic and change their office operations while ensuring business does not come to a halt.

While at it, many of them are taking measures to safeguard their workforce from total decimation. Covid-19 has so far infected more than 1.7 million globally, killing around 100,000. In Kenya, 7 out of the close to 200 confirmed have succumbed.

Kenya Airways has been one of those hardest hit by the scare, with the airline staring at massive losses amid a possible total business shutdown.

Last month, KQ announced that its employees would have to make do with pay cuts of between 25 per cent and 50 per cent, depending on their level, with low cadre employees being handed a slight reprieve and taking the lower cuts.

The middle level staff would have to incur a 50 per cent cut. Staff would also be required to take unpaid days off work.

“With effect from April 1, 2020, all employees at grade H06 and above will be on a one-week paid and three weeks’ unpaid leave. All employees at H05 and below will be on two weeks paid and two weeks’ unpaid leave,” Chief Executive, Allan Kilavuka, told staff.

“If you are required to be on duty, you will be on 25 per cent or 50 per cent pay subject to your grade.”

The management team would also have to do with bigger pay cuts. The chief executive would take an 80 per cent cut. Other members of leadership were to be subject to a 75 per cent cut.

It is the drastic measures that companies have to take, and employees are facing the full wrath of such decisions.

At the time, 65 per cent of the airline’s flights had been suspended. Now, the situation might even be bleaker as passenger flights are no longer active.

As many companies bid their staff to work from home, a study by Kenya National Bureau of Statistics (KNBS) shows that only less than a third of Kenyan companies have the infrastructure that enables their employees to work from home.

Out of close to 19 million Kenyans actively engaged in some economic activity, only 4.5 million have access to a computer at home.

In some industries, such as SMEs, the physical presence of the employees is necessary for successful production.

But the fear of infection, as well as the dusk-to-dawn curfew that was declared by President Uhuru Kenyatta two weeks ago, has meant that the workforce has been shrinking as people keep away from workplaces.

Companies such as Tuskys, which was already planning to lay off employees before the full bite of the coronavirus, might end up parting ways with a lot of employees as the economy continues to suffer.

“The company’s performance in the last two years has been on the decline. As such, the company has embarked on a process of restructuring its operations to ensure financial viability,” said Tuskys general manager in charge of human resource, Francis Kimani, in February. Members of staff had already started receiving termination letters in the month.

And with supplies for raw products and markets for finished products both taking a significant hit due to the global economic slowdown, companies will be restructuring to cut down costs. This will mean that thousands of employees might be facing retrenchment in the near future.

Other companies have been trying to cushion their employees against the ravages of the pandemic by supplying them with basic needs.

Bimal Kantaria, the Elgon Kenya managing director, last month said the company had resorted to providing employees with basic needs such as sugar, wheat flour, cooking oil, tea, and emergency packages to help ease the situation.

Kantaria also said that they would be giving their over 600 employees a Sh2,500 package for a family of five from Chandarana Foodplus, saying that the move was a ‘goodwill gesture and supporting employees.’

The MD also says they are working with the Kenya Private Sector Alliance (Kepsa) to come up with solutions on transport provision for employees, since matatus had hiked fares following a directive by the government to carry fewer passengers.

On Friday, March 20, mattress maker Vitafoam sent a memo to its staff telling them of their contribution to helping them through the coronavirus scare.

In the memo, Vitafoam informed employees of its decision to support them with essential basic needs such as sugar and maize flour.

“As we brace for tough challenges ahead, we realise the impact this has on your financial position and would like to share with you in your burden and have prepared a contingency package to cater to some of your needs,” Vitafoam said.

Dilemma

Last week, UAP Old Mutual Faulu Foundation announced that they had committed Sh6 million for humanitarian initiatives in response to the Covid-19 pandemic in Kenya. Part of the money would be used to “support over 400 casual work force across the UAP Old Mutual and Faulu footprint in Kenya”.

Transport operators are going through a dilemma, where they are stuck between making losses with reduced carrying capacity and continuing to provide services to hapless Kenyans.

Association of Matatu Owners Chairman Simon Kimutai said that they have standardised fare rates, and have asked operators to follow the guidelines.

“Some are even carrying at 30 per cent capacity as they bid to keep their passengers safe,” says Kimutai.

In the gloom, though, Zoom Video Communications, an American remote conferencing services company, has gained popularity as companies resort to organising online meetings, the directive to work from home and maintain social distance.