Lay-offs already taking place in catering industry, association says

The Association of Catering Establishments (ACE) has called for calm as businesses start to lay off workers due to the economic impact of COVID-19.

The body, which represents catering industry staff, noted that layoffs were already occurring in view of the current situation. ACE appealed to all involved “not to take rushed decisions.”

“Regrettably some are having immediate reactions to communications. We call for informed decisions in order to ensure to save businesses, jobs and the future of our economy.”

Although the government on Monday gave instructions for bars and restaurants to close, most establishments had already closed due to diminished sales, said the association, noting that the government was being “very cautious” in the circumstances.

Saying the situation had changed drastically for the catering industry, the association asked for additional measures, including transforming the existing government schemes for business growth into business saving schemes and using the maternity fund to help in paying parents who are unable to go to work because of school closures.

The ACE said that where possible, catering establishments are to sustain payments of 2 days a week for the next two months, suggested the association. It also urged the  government to consider to exempt from tax, landlords who reduce their rent by at least 50% in the case of establishments and by 75% in the case of homes.

“The situation everyone found themselves in is that all establishments will become start ups in a few weeks. In this context, we feel that there may be sufficient arguments to use these funds to protect the existing businesses,” said Reuben Buttigieg, CEO of Erremme Business Advisors.