US Companies Shrink Due to COVID-19, Struggling to Devise Compensation Plans

Uber Offers Up to 14 Days of Paid Leave Support

Apple Sends Work-from-Home Requests in Areas with Strong Spread

Lyft Supports Isolated Drivers

Facebook Closes Seattle Office Until 9th After Contract Employee Tests Positive

▲Mike Pence, Vice President of the United States (second from right), met with representatives of the cruise industry in Florida on the 7th (local time) to discuss measures to prevent the spread of COVID-19. Senator Rick Scott of Florida also attended the meeting. [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] As economic activities shrink due to the spread of the novel coronavirus infection (COVID-19), U.S. companies are struggling to prepare compensation measures for their employees. They are providing paid leave to workers who feel anxious about COVID-19 infection and offering salaries to employees under quarantine. U.S. Vice President Mike Pence recently stated at a press conference that "support measures for low-income groups have been prepared."

According to the Wall Street Journal (WSJ) on the 8th (local time), ride-sharing and food delivery companies such as Uber, Lyft, DoorDash, Postmates, and Instacart are discussing compensation plans for drivers who are likely to be affected by COVID-19.

Uber was the first to take action. Its parent company, Uber Technologies, recently announced via an internal email that "drivers diagnosed with COVID-19 or quarantined under health authorities' orders will be provided with up to 14 days of paid leave." Uber added that it plans to expand this measure worldwide. Previously, Uber reportedly provided financial compensation to five drivers quarantined due to COVID-19 in the UK and Mexico.

Uber's move was largely influenced by U.S. Senator Mark Warner, who sent a letter to domestic platform companies including Uber on the 6th. In the letter, Senator Warner urged companies to provide financial support to 'platform service providers' facing crises due to COVID-19.

Following Uber's announcement, support from other sharing companies has also been emerging. Lyft, Uber's rival, issued a statement saying, "We have decided to support drivers infected or quarantined by health authorities." Earlier, when one employee in the San Francisco area was identified as a contact, Lyft recommended remote work to employees in that region. Postmates, operating a delivery app, is also reportedly considering supporting drivers' health checkups. Apple has decided to provide salaries to part-time workers following the same protocol as Amazon, Alphabet, and Facebook.

Separately from companies, the U.S. government has also begun preparing support measures related to reduced work opportunities and deteriorating working conditions for sharing economy workers. At a White House press conference on the 6th, Vice President Mike Pence responded to a question about whether there are countermeasures for salary cuts due to the spread of COVID-19 by saying, "We have prepared support measures for low-income people who are temporarily unemployed due to COVID-19."

In regions with strong COVID-19 spread, companies are also strengthening efforts to encourage remote work. Apple sent internal messages recommending work-from-home, focusing on areas with high infection rates such as the U.S. and South Korea.

Bloomberg reported that Apple CEO Tim Cook sent an internal message to employees recommending remote work from the 9th to the 13th. The target areas include Seattle, Washington; Santa Clara and Elk Grove, California; as well as South Korea, Japan, Italy, Germany, France, Switzerland, and the United Kingdom.

In the message, CEO Cook said, "This is an unprecedented situation," and urged, "Please work remotely if possible for your job." He added, "Please maintain strict personal hygiene and follow the guidelines of the World Health Organization (WHO) carefully."

Earlier, U.S. IT companies such as Google, Amazon, Facebook, and Microsoft (MS) had recommended remote work to employees working in Seattle. Google advised Seattle employees on the 5th, and Amazon, headquartered in Seattle, recommended remote work until the end of this month after one employee tested positive on the 3rd. Facebook closed its Seattle office until the 9th after a contract employee was diagnosed with the virus. According to local media, MS and Amazon each employ more than 50,000 people in Seattle alone, meaning that over 100,000 citizens are affected by these measures in Seattle. Facebook and Google reportedly employ about 5,000 and 4,500 people in Seattle, respectively.

This content was produced with the assistance of AI translation services.