Companies close locations, cut back operations to stem coronavirus outbreak

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Companies close locations, cut back operations to stem coronavirus outbreak GlobeBusiness

A man wearing a protective face mask walks through a sparsely occupied open-air shopping mall amid concerns about the coronavirus, in Richmond, B.C., on March 15, 2020.Businesses across the country are scaling back or even shutting down as consumers and their own workers retreat into their homes to blunt the public-health threat posed by the novel coronavirus, as markets took their most dramatic plunge since 1987.

But Mr. Trudeau did not move beyond moral suasion, leaving no clear national standards for businesses to follow. Provinces and cities are applying different guidelines – some mandatory, some voluntary – that have an effect on business operations. Unlike other sectors, however, manufacturers are unable to free large parts of their staff to work from home. “You can’t run a factory from home, you can’t drive a truck from home," said Dennis Darby, president and chief executive of Canadian Manufacturers and Exporters.Bombardier Inc., one of the largest industrial employers in both Canada and Europe, said it suspended all production at rail-equipment plants in Crespin, France, and Bruges, Belgium.

While the federal government has not provided details on how it may support individuals and employers, businesses are hoping for measures that will allow them to cross the economic desert of the next few weeks: deferred taxes, easier loan terms or even grants. Aritzia has not yet set a date for its stores to reopen. During the closings, any profit that the company makes, such as through e-commerce sales, will be redirected to a “relief fund” to support employees who are affected.

Some companies have been directly affected; gold miner Iamgold Corp. shut its Toronto head office for the week after an employee tested positive for the virus. Late Monday, Recipe Unlimited Corp. said it is closing dining rooms for all of its brands, which include Swiss Chalet, Harvey’s, The Keg and St-Hubert.

 

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globebusiness It's also because they have very few customers these days and don't want to pay employees for nothing.

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