Flexible furloughing and trade credit victory for meat industry
The Government’s coronavirus Job Retention Scheme will remain open until the end of October and become more flexible, something the meat industry has been requesting for many weeks. There have also been steps taken in relation to trade credit insurance, which will be welcomed by many, in particular AIMS which has been talking to the Government about the issue.
From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.
The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
Norman Bagley head of policy at AIMS has advised its members that: “On the basis that 1st August, is 11 weeks away, will be making a request to him [The Chancellor] and the Secretary of State for Business, Energy and Industrial Strategy, Rt.Hon. Alok Sharma MP for them to consider earlier introduction into sectors of the economy including the meat industry where an immediate benefit could be gained for manufacturing as well as the economy.”
Trade credit insurance
The Economic Secretary to the Treasury, John Glen has announced businesses with supply chains which rely on Trade Credit Insurance and who are experiencing difficulties maintaining cover due to Coronavirus will also get support from the government. Full details can be found here.
Trade organisation, AIMS, feels this is a big victory won on behalf of its members as it has been pushing this for some time with Government. Bagley told Meat Management: “We are delighted that the Government have listened to calls from AIMS and others to step in to guarantee business to business transactions currently supported by trade credit insurance and which have been disrupted during the Covid-19 pandemic.
“Our work in respect to a fair deal for our members in terms of Business Interruption Insurance continues but today’s announcement is a great step in the right direction.”