One of three NHO (Norwegian Industry Organization) members says they are at risk of bankruptcy: - The Norway we know is at stake. NHO boss Ole Erik Almlid does not think it is possible to turn the clock back for Norwegian business. Now it's all about saving the future.
I'm scared. Not surprised, for the last few weeks we have seen how this escalates, but frightened. When I see the numbers, it is difficult to find words, says Ole Erik Almlid, CEO of NHO.
The employers' union conducted a new survey among its members on Thursday and Friday. NHO represents over 27,000 companies and over 5,000 have responded. The survey paints a bleak picture of the situation among the members:
-56 percent have completed layoffs - six percent more than one week ago.
-75 percent say that layoffs are expected end shortly.
-Four percent have to axe their employees, while 15 per cent plan to resign.
-32 percent say they experience a real risk of bankruptcy. For companies with nine or fewer employees, the figure is even higher: 42 percent
-32 percent lack money to pay bills, up from 29 percent last week.
-84 brands saw lower demand, up from 82 per cent last week.
Especially the widespread fear of bankruptcy impresses the NHO boss:
- Many of our members are running out of money, but the rent and the electricity bill must be paid. These are facts of the life situation of many. The workplaces of tens of thousands of people across the country. The Norway we know is at stake, says Almlid.
He has no doubt that Norway will somehow come through the crisis, but says he is characterized by a "dystopian" feeling. "It's a downfall," he says.
Cash to help businesses
On Friday morning, the NHO chief met with the press, including the Minister of Finance and Industry, as well as the LO (workers union) chief, to present the government's fourth crisis package to date. The measures must be adopted in the Storting before they can be implemented, but the principles are clear: For a preliminary period of two months, the state will pay a significant proportion of the corona-affected companies' running expenses. The share has not been clarified, but companies that are closed will receive more.
The cost is estimated at between ten and 20 billion a month, depending on how many people ask for money. The application process should be mainly automatic and the money can be in the account within three weeks.
- It has been important to have general schemes in place. It shows that everyone is affected by this. All industries, large and small companies, all over the country, says Almlid.
- Do you think it will be enough? It's very difficult to say. I don't think that's enough. But there may be other types of packages, targeted at individual industries, which will be the right way to do it in the future. What we do now must have a long-term positive effect.
The NHO boss does not think it is possible to turn the clock back for Norwegian business.
- This must also contribute to a restructuring of Norway. We can and will be best at the climate challenges, the best at the technology challenges, the best at acquiring and developing the expertise, and by ensuring that our young people have access to good jobs and good lives, says Almlid, adding:
- Nobody knows where we are in a few weeks. Now we have to make quick decisions and act big. Those who are sure of where this ends should not listen to, he says.