For the Sake of US Manufacturing, Shut us Down.
I am the CEO of 99Degrees, a US manufacturing company which employs 150 people in the Merrimack Valley. I am urgently asking our elected and business leaders to shut down all non-essential businesses, mine included, under a shelter in place order. Pause everything for two weeks to prevent this virus from spreading. Pause everything to get enough tests in place so that we, as employers, can make informed decisions for the people who work in our companies.
What we need right now are two things. First, we need the US Senate to pass the bill from the House that guarantees federal funding to provide small business hourly workers two weeks of paid time off. In that way, small businesses and their hard-working hourly workforce do not carry the burden alone. Second, all US Governors need to agree to a policy of shelter place for all schools and non-essential companies.
We have run out of time for indecisive leadership and patchwork plans. Viruses do not recognize city or state lines. We need, and we need urgently, to put in place a unified plan. And if we make a hard decision together, we lessen the risk that many of us will be making impossible decisions for the foreseeable future. I ask for real leadership.
Like all of us, I have been watching this unprecedented situation unfold. I have been on calls with other CEOs, my Board, industry associations, and I have been following the news from Washington and Beacon Hill for guidance. From where I sit, we have only one choice. We need to take collective and decisive action now to protect our community, our workforces, and our businesses. We need to grind the spread of COVID-19 to a hault to prevent the economy from grinding to a hault. And we must slow down the spread of this virus to get enough tests into our communities so we can operate with confidence. This temporary pause is in the long term best interest of our businesses, our workforce and the country.
The Federal Government advises not to gather in groups of 10 or more. Our governor advises against groups of 25 or more. That same guidance does not apply to the business community. Why? I have no idea. Our hourly workforce deserves to have their health and safety ensured, above all else. And if social distancing is the answer then we should all be practicing, at the same time, together. As a manufacturer, my employees do not have the luxury of working from home. Instead, we have buckled down and split into two skeleton shifts. My management team is working extended hours to support both. Our team has adapted with grace. We understand the importance of social distancing and are willing to make hard decisions to do our best to protect our team. We have created space between our production lines. We now eat in temporary cafeterias where only 15 people sit, facing away from each other, spread out. Nonetheless we currently have 60 people working on our production floor.
Understand the dilemma. If I close 99Degrees to protect my team while the rest of the community remains open as usual, my efforts are in vain. If I choose to close temporarily and the virus continues to spread in Massachusetts, when do I re-open? If someone on my team tests positive for coronavirus, who do we send home? Do we shut down to clean or do we shut down for 14 days? We know there are not enough tests. Do we shut down when an employee is asked by medical professional to self-quarantine? If we continue to shut down every time someone tests positive or is suspected of having coronavirus, how will my hourly workforce support themselves once they have exhausted their paid time off? How do we run a manufacturing business that cannot predict when it will be open or closed or who will show up to work? How does a manufacturing company withstand the risk of a prolonged and ongoing disruption? You can see that this quickly becomes a series of impossible decisions on repeat, unless we act now.
My team faces a similar dilemma. They, especially my hourly workforce, rely on the financial stability of their paycheck. We operate in a Massachusetts gateway city in which people’s jobs are their lifeline. We have always paid a living wage, above the state minimum. When we moved to 2 shifts, we reduced our workday to 7 hours. Even a one hour reduction in work per day comes as blow to a workforce that lives paycheck to paycheck. According to USAToday, 59% of Americans. I repeat, 59% of Americans live paycheck to paycheck. I have read other reports where that number is as high as 78%. We offer our hourly team 40 hours of paid time off. The first time we close for 14 days, our team will get paid for, at maximum, five days. What happens after that? Short term disability covers you when you are sick and at only a percentage of normal pay. Unemployment, too, covers only a percentage of normal pay. What about health insurance benefits? If this is prolonged, our workforce will suffer the most. They are the reason that our doors remain open right now yet they are most at risk for coming to work.
I founded 99Degrees because we need business leadership to create the kind of jobs by which families can support themselves. And right now, my team needs leadership more than anything. They are showing up despite a new shift. They are showing up despite child care challenges during school closures. And so I ask our leadership in Washington, on Beacon Hill, and across the country to show up for them. Make the hard decision now.
