ORM: The damage to the business will be even greater if the situation with Kovid-19 does not improve soon

Skopje, 04.06.2020 – The crisis caused by the Kovid-19 pandemic has a great impact on 82% of Macedonian companies. Nine sectors in which 62% of the total number of employees in the economy are engaged are most affected by the crisis, and as many as 40,000 jobs are at immediate risk. Without adequate measures and support for these companies and employees, the current unemployment rate in the country will increase by up to five percentage points.
These are some of the results of a survey conducted by the Organization of Employers of Macedonia (ORM) among domestic companies, as a basis for preparing the recently published report on rapid impact assessment of Covid-19, developed by the International Labor Organization (ILO). through the European Union-funded project “Strengthening Social Dialogue”.
In the nine most affected sectors of the crisis caused by the Covid-19 pandemic are: service activities, especially those related to food and beverages; the retail sector; transport and storage; manufacturing industry, especially food production; and construction. As many as 43% of companies in these sectors, especially micro and small enterprises, reported a decline in revenue by half or more, and 11% temporarily stopped working. About half of the companies surveyed said their company would not survive the third quarter of this year if the crisis situation did not improve.
“The assessment of most of the companies that participated in the research is that the government’s current economic measures to support the time of the Covid-19 crisis were timely, but that the size of the support provided and the duration of the measures will not be enough to achieve the desired effects. “, Says the President of ORM, Angel Dimitrov.
Over 70% of the surveyed companies believe that the state aid for the payment of employees’ salaries should continue for up to six months, and more than half of the companies stated that additional tax relief should be provided in the area of ​​personal income tax, profit tax and VAT, as well as to increase the volume of interest-free loans that would be placed through the Development Bank of Northern Macedonia, which should contribute as many companies affected by the crisis to maintain their economic activity, thus avoiding bankruptcy, liquidation and layoffs.
“A joint indication of the companies that participated in the research is that the distribution of state funds and loans within government support programs should be done in a fair and transparent manner,” Dimitrov said.
The report on the rapid assessment of the impact of Coyd-19 contains 11 recommendations for the support of workers, companies and citizens, which are considered in the framework of the tripartite social dialogue between the government, employers and unions.
ORM is the only representative member of the employers in the National Economic and Social Council, where since the beginning of the current crisis it has been submitting proposals for easier overcoming of the consequences on the domestic economy. At the same time, ORM regularly publishes on its website www.orm.org.mk all information, measures and regulations of the competent institutions, and offers additional assistance and guidance to all companies on how to use the measures for easier and smaller consequences to overcome the current crisis.