The measures implemented in the Defense Orders for the most affected sectors focused on supporting businesses in paying their workers' wages. This is extremely important, but it alone is not enough. There are other obligations and burdens that businesses should have been supported for. Many small and medium-sized enterprises needed direct support, especially those on the verge of collapse, at a time when the mechanism for granting loans through Central Bank allocations did not reach them due to the complex conditions imposed on obtaining them. Most of the support went to less needy businesses. It was also necessary to expand the granting of various exemptions to these businesses and defer payment of their obligations to the government, including fees, taxes, and other matters. In addition, it was important to find practical solutions to the problem of office and store rents in a way that preserves the rights of both the owner and the tenant.
A robust mechanism should have been put in place to monitor the affected institutions, the nature and extent of the damage they have suffered, in cooperation with organizations representing each sector, in preparation for approving support and assistance programs appropriate to each institution based on the nature and extent of the damage they have suffered. This is to ensure access to all affected institutions, and for support to reach only them and not others. This would alleviate the financial burden on the funds that provide support, rather than having support be comprehensive for sectors or groups of sectors where not all institutions may be affected or in need of support.
As for supporting institutions in paying their workers' wages, the government has adopted a single approach, which is to use social security funds for this purpose. Social security funds are originally used to compensate workers who lose their jobs and join the ranks of unemployment, so that they receive unemployment wages for a period of up to six months. It is not the role of social security funds to support institutions and employers for any purpose, including paying the wages of their workers. This support was supposed to be provided to these institutions through sources other than social security, and there are many existing funds and funds that could be established for this purpose.
In addition, supporting institutions in paying wages included a trend that remained adopted in all defense orders and communiqués, which is reducing workers' wages by varying percentages, reaching at one stage 60% of the worker's wage. This is something that cannot be justified in any way. The state's role in such circumstances should focus on supporting vulnerable groups affected by the pandemic, especially workers, by supporting their wages. This is what most countries have adopted, as they have supported workers' wages and worked carefully to ensure they are not affected, reduced, or delayed, with the same level of care taken to preserve workers' jobs and limit the termination of their services.
The unjustified wage cuts have harmed hundreds of thousands of workers and the national economy, resulting in a decline in the purchasing power of a broad segment of workers and their families, estimated at more than 3 million citizens. This has contributed to economic stagnation and the collapse of institutions and businesses.
