Ideas & Stories

Our C-19 stocktake for business owners

This is really serious. And the implications for business owners go far beyond what most people realise.

1. Your liability as a business owner.

As of 28 July 2020, employers are required to notify Worksafe of any cases of employees who have tested positive and who have been at work in the previous 14 days. Failure to comply? A trifling penalty of up to $198,264. <Click here>.

If that isn’t enough, there are a few lawyers who are now saying that employees who contract C-19 at work could claim Workers Compensation and, in the event of employer negligence, could possibly claim damages for long term injuries.

We have one large client in an Essential Services sector who now has double digit cases of C-19 amongst their staff. We don’t envy their challenge to make their ongoing workplaces safe.

Your people are working from home? You still have a responsibility to ensure that they have a safe workplace. That covers everything from risk management, materials handling, work activities and ensuring a safe and suitable environment, through to mental and emotional wellbeing. All of this, even though it is the employee’s home.

2. When will it end? When can we get back to work?

Excellent question. One we all seem to ask all of the time.

Perhaps it all depends on the timing of a magic anti-viral drug. Here is an interesting article that outlines the progress, likelihood, risks, distribution challenges and timing <click here>.

We know a surprising number of people who have now contracted C-19. One half were from the first wave and all have recovered. However, one of those has permanent lung damage. Hopefully, the other half are all recovering in isolation. Sadly, at least one of the second wave victims has now died.

This clever bug is highly virulent, and you need to be uncompromisingly vigilant in your workplace (and of course, everywhere that you, your family and your people work and live). There are a recalcitrant few who don’t like the encroachment on their liberties for the benefit of others in their community. No doubt the renewed diligence of the police will help put this back in line.

And hopefully, the Stage 4 restrictions will enable the cases to fall sufficiently for all of us to get on with our lives. After all, our world (and State) leaders are effectively gambling with our lives, welfare and our entire country and community wealth.

3. The big gamble

You have just taken part in the most expensive bet ever made. Ever. You, and your children have just spent an absolute fortune on this punt.

In one corner, is the hero of the Total Elimination strategy, Jacinda Ardern, Prime Minister of New Zealand.

Jacinda’s strategy is clever. Stay clean and wait for the antiviral drug. Stamp out any spot fires that might (and inevitably will) arise. And should that drug come within the next year or so, her country will emerge relatively unscathed. Indeed, even deaths for other co-morbidities such as the normal flu, will have been correspondingly lower.

She is betting on an early vaccine outcome.

In the other corner, the Swedish Prime Minister, Stefan Löfven, hero of the free tradies and the Herd Immunity team.

Their strategy is far more akin to business-as-usual with very few restrictions on business activity, together with sensible practices such as social distancing, lock down of vulnerable people and a few school closures.

The cost in economic terms may be relatively similar to New Zealand, but of course with over 5,744 Swedish people dead (skewed towards older and co-morbid people), there is a social price to pay. Sweden is about 40% of Australia’s population and we have lost around 221 people to the virus.

Stefan’s strategy is also clever. Allow the strong members of our community to develop immunity after catching and shedding the disease and there will be less dependency on a vaccine. And should that vaccine take many years … or never arise, Sweden is looking good.

He is betting on a long wait or no cure strategy.

Both sides are betting big with huge stakes at play.

And Australia (like New Zealand) started with the Flatten the Curve strategy but failed to cross over to Total Elimination. Now we appear to be stuck in no-man’s land. With Stage 4 now in Victoria, looks like ours was no sure bet. And the cost keeps climbing.

Other factors may also come into play.

What percentage of the population needs to catch the disease before a natural defence is acquired … is it 50%, 60% or maybe as high as 80%? Does everyone who contracts COVID-19 also acquire an immunity? What if it is only 1 in 3? Does that immunity wain over time? To what extent does your body retain the antibodies and T-cells necessary to ward off a subsequent attack?

What about those who appear to now be suffering permanent damage (especially to their lungs) after hospitalisation and pneumonia? How will that affect them in later life? These numbers don’t appear in the statistics.

So, maybe Sweden’s strategy comes with too high a price?

On the other hand, what if the vaccine that we patiently wait for has a low efficacy? What if it has side effects like the hastily developed Fort Dix flu vaccine in 1976 where 25 people died, and 250 people were paralysed by the vaccine?

The cure turned out worse than the disease.

And if that magic vaccine never comes, New Zealand and Australia may need to rethink that herd immunity strategy. Perhaps one that involves progressively taking the fit and healthy member of the community (including disbelieving Millennials and freedom fighters) to remote locations with good emergency facilities, allowing them to contract and fight off the virus, and return to the community with the antibodies.

Crazy, but it could come to that.

Right now, New Zealand (and Australia) have bet big on our current course of action. The price will continue to rise the longer the solution eludes us. And worse, we may ultimately have to head down the Sweden path, albeit at a controlled pace.

But should an effective vaccine come soon … we all win.

4. Government support.

Don’t forget, both the State and Federal governments have dug deep to provide all manner of supports for businesses. In case you missed any, check these out:

Of course, you could always pick up the phone and ask us if you are getting all of the support that you qualify for.

Stay safe! Stay home!