March Newsletter- 2020
Association of Liberian Humann Resource Professionals
Coronavirus Outbreak: Government of Liberia’s Response to Support Employees
The world has become devasted by the novel COVID-19. Healthcare
Systems of sophisticated countries are struggling to deal with the
pandemic. To level the curve, reduce the human to human
transmissions and regain socio-economic sanity, governments across
the globe have instituted stringent health protocols for all citizens,
residents and visitors within their respective borders.
The pandemic is also leaving jolt of entrenched economic, social and
financial impacts. Countries, on the other hand, are aggressively and
courageously fighting the virus while at the same time having to deal
with the backlashes.
Employers are now scaling down business operations either as a
result of the economic impact or in response to the health protocols
announced by the GOL. The fares for local public transport have
increased, while working from home has become an additional burden
as parents now have to juggle with food and other essential supplies,
amongst others.
According to the Washington Post-March 25 th Edition, the Trump
government concluded a deal on a $2 trillion stimulus compendium to
salvage the economy from COVID-19 battering. The deal targets to
downpour the economy with money by giving $1,200 checks to many
adult Americans and children receiving around $500
1 . Elsewhere in Italy, which is much battered by the pandemic, some
businesses and families are given time off all through the financial
crunch before having to pay back. Additionally, bank loan payments have been suspended amid the outbreak
2 . Many other Countries with
stressed economies are wearisome about providing social support to
the taxpayers, employees and other small businesses.
Through the lenses in Liberia, with three confirmed cases, the impact
of COVID-19 on the economy is yet to be measured. The Government
of Liberia has introduced some stimulus packages including the
suspension of loan repayment, bank transfer charges. What is also
welcoming is that Lonestar Cell MTN has also plummeted for one
month, all mobile money transactions charges.
Still, employees, employers and business people are already sensing
the warmth of the virus assault. Employers in the private sector are
cutting back on headcounts due to the paralysis of their business.
They are also cutting back headcounts in the interest of abiding by the
government social distancing policy. Prices of essential commodities
have skyrocketed; transport fares have increased; prices of primary
products are mountaineering due to lack of importation, and the cost
of disinfectants used to protect oneself against the pandemic are high-
priced by the regular Liberians. In all this fight, inflation does not have
mercy- it moving stealthily up to 24%.
Judging from a difficult time, what can the Liberian government
do to support?
The Association of Liberia Human Resource professionals have
reviewed trends in other countries and Liberia and herewith
recommend the following:
Implementation of the Decent work Act: That the Ministry of Labor
should work with private companies to ensure that the laws are
implemented, and employees who are working from home or asked to
take leave due to the virus maintain their job upon return.
Monitoring by the Ministry of Labor. The Ministry of Labor can work
with companies to ensure that fix-term contractors or employees are
paid in line with the Decent work Act. The Ministry of Labor can also
work to protect employers in terms of force majeure.
Liberianization policy: There may be several international
organizations coming to Liberia temporarily to support the fight against
the COVID-19. Liberians must be given the opportunity to work in line
with the Liberianization policy and must be paid comparatively.
Ensure Regular salary payment: The Civil Service Agency must
ensure all civil servants take a regular salary to support their families
during these trying times and to also keep civil servants on the payroll
upon return to work. The COVID situation must not be used to de-list
any civil servant during or after this period
Suspend Income Tax: The Government of Liberia must see the need
to temporarily waive income tax payment One Hundred (100) per cent
for the next three months (March-Mayy 2020) for all employees or
contractors. The waiver is an indirect stimulus package. It will also
increase the disposable income of employees and help them to
support their families while they are locked down.
Suspend Employees’ NASSCORP contributions. Four (4%)
contribution should also be suspended alongside the Tax
Break/Waiver period. The employers ‘contributions should also be
deferred to counterbalance the temporary waiver/suspension of the
employees ‘contributions. However, the Injury Scheme Contribution of
2% should be paid.
Reschedule Employees Loan payment: The Central Bank of
Liberia should work with commercial banks in Liberia to reschedule
loans repayment for employees who have an obligation with banks.
The reschedule will allow employees to support their families during
these troubling times.
Communication and engagement. Employers at this time can keep
their employees engaged through regular communication and updates
on COV-19 and workplace matters.
Finally, we understand that the Government of Liberia is challenged
financially to meet a healthy stimulus package. Still, as the GOL
tackles the growing economic and social situations, the above
recommendations could form a basis for sound public policy.
ALHRP supports the putting of “the human” back in human resources
as it will serve as a significant step in the fight against COVID-19. This
process could be the GOL ticket to a stimulus package for the working
class in Liberia. We may not have the sizable budget or resources as
sophisticated countries do. Still, working with the Ministry of Labor,
CSA, LRA and NASSCOROP, the above recommendations will help
Liberians employees.