Travel-related companies have expressed plans to reduce their workforce because of the coronavirus and need to be given more support, the Malta Employers Association said on Thursday.

Small travel agencies, restaurants and hotels have all said they will let employees go because of the sudden drop in business, and better communication by the government is needed to encourage them to reconsider, MEA director general Joe Farrugia said.

“We are telling our members not to jump the gun and that this might be over in weeks. It’s better to hold on to your human resources than release them and have to re-employ them,” he said.

While the authorities had taken a step in the right direction in calling press conferences and monitoring the situation more dialogue with the social partners was needed, Mr Farrugia pointed out.

On Wednesday, Times of Malta reported a significant drop in sales in catering establishments, restaurants and bars following coronavirus concerns.

Banks have since announced a number of measures to provide support to business struggling as a result of the virus.

On Thursday, the Chamber of Commerce also urged the government to help companies weather the storm caused by COVID-19.

Among its proposals, it said the government should introduce tax breaks or
tax deferrals (in the form of corporate, VAT or excise duties) for companies,
delay payments of commercial utility bills, launch talks with the major commercial banks to suspend commercial loan repayments and establish a
national emergency fund to offer State aid to companies which are already facing difficulties. 

The lack of work for some firms such as a rental and taxi service firm has left them with no choice but to lay off workers.

“It’s a disaster. We’ve had to cut our workforce by 60 per cent. We feel really insecure and helpless at the moment,” said its director. 

While the MEA and the Malta Chamber of SMEs had made contact with the company to monitor what was going on, they had not heard from the authorities.

“Subsidies, tax rebates, or any help would be welcome from the government
right now, as we’re very concerned at the moment,” the director added.

He explained that since many of his clients came from hotels and schools, he was expecting the situation would only get worse as lockdowns were imposed.

Ralph Tintle, one of the employees the company had not given any work to for
the past two weeks, told Times of Malta he was really worried.

“It’s going to be a tough few months for us. Winter is the worst season for
people in this industry and usually we make up for it in the preceding months,
but this isn’t looking likely,” he said.

“There are thousands of others like me and I hope the government is able to
help us both employers and employees.”

Vince Micallef, the owner of the bar and restaurant Fortizza, whose sales dropped by 40 per cent this week also said that he would have to start reducing work hours next week if the situation continued as it was and they received no help.

The owner of Mamma Mia, Lino Pullicino, however, said he had been assured by the authorities they would be given support.

As of this week sales dropped drastically and he was implementing changes to help his business to adapt to the current climate.

Despite this, he was confident that if the government came through with the
necessary concessions his workforce would not be impacted.

“We will doing everything we can to keep our workers and I have faith with the
necessary help we will get through this.”