Kuwaiti and other foreign companies have informed thousands of employees of their contracts’ termination, given their inability to provide salaries, while companies and banks have cut their employees’ wages by about half the amount, according to press reports.
According to recent estimates issued by the International Center for Economic Consultancy, the New Arab website revealed that the total reduction in the salaries of leaders in the private sector amounts to about 800 million dollars per month, while the value of the reduction in wages of government employees amounted to 700 million dollars, bringing the total monthly reductions to 1.5 Billion dollar.
Companies have started informing their employees to end their services, either by e-mail or by phone, most notably the Al-Shaya group, which informed its employees through a televised message in which the company’s acting CEO, John Hadden, spoke to all employees working for their brands, telling them : “I have unpleasant news today. The outbreak of the Corona virus has affected our business significantly, especially our trademark deployed in all governorates of Kuwait, which prompted the group’s executive management to take a decision to end the services of workers in our branches during the current time, we will communicate with you soon.”
A banking source revealed to The New Arab that the Central Bank of Kuwait informed the chief executives in Kuwaiti banks of the need to reduce their salaries as well as the managers’, representatives and banking leaders while stopping all bonuses, until further notice in a step aimed at rationalizing expenses at the present time.
Another government report issued by the Macroeconomic Department of the Kuwaiti Council of Ministers revealed that the government incurred a monthly bill estimated at $ 3.5 billion in the event of the continued holiday granted by the state to citizens and residents of the public sector due to the outbreak of the new Coronavirus.
#Kuwait #Coronavirus #COVID19 #WagesCut #ContractTermination #Repercussions
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