Denmark is one of the most democratic countries in the world, so it’s no surprise they’re handling the coronavirus crisis reasonably well. Because workers are nearly equal to owners, even though their economy is still market-oriented, they have figured out a way to mitigate the looming job losses:
The deal covers companies who'd have to lay off at least 30% of staff, or 50 staff or more.
In return, companies commit to not lay off any staff for economic reason while they're receiving state compensation.Incredibly what can be done when the political will is there
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Covering 75% of wages for a period may seem like a bad deal for the state. It isn't: Lost jobs = lost tax income and increased benifits payments. This is a better way to lose that money, as it helps avoid a downturn in econ. activity and fallout from nonpayments of rents,mortages
The condition of the deal is a strong trade union movement. But as usual, the Danish model is weaker when it comes to protecting the self-employed, people on zero-hour contracts, etc.. Many have already lost their jobs - what will be done for them remains to be seen.
Also, the deal is short-term, lasting until June 9th.
Some employers who expect a longer-term recession already say they won't take the deal, prefer sacking over paying 25% of salaries.So longer term questions remain. Would the state keeping employment going for longer if necessary? What about jobs that are actively harmful to the environment - so-called #batshitjobs - will they be sustained or will the crisis be used for a just green transition?
While most countries dither and delay, Denmark has moved swiftly to help workers impacted by the economic fallout from coronavirus – securing a deal between unions and employers to protect wages and prevent layoffs.
tribunemag.co.uk/2020/03/denmarks-answer-to-the-coronavirus-recession
☝️ my piece on Denmark's answer to the Coronavirus recession…