'We are dead; the state tells us to rise again and make our payments'

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The government ended short-time work allowance on March 31 despite the increasing effects of the coronavirus pandemic on the economy.

The government's decision to end the payments came ahead of new closures in Ramadan, the Muslim holy month starting on April 13, due to the increase in coronavirus cases.

The short-time work allowance is the payment made to employees for periods that they don't work in cases where the working hours are reduced or work is completely stopped. It was introduced at the start of the pandemic in March 2020.

More than 3.7 million employees were paid a total of 32 billion lira (3.92 billion USD) as part of short-time work allowance payments.

After its termination, a wave of unpaid leaves started. Several large companies including Onur Air and Do&Co, the catering company of the flag carrier Turkish Airlines (THY), put all their employees on unpaid leave.

Tradespeople who will close their businesses for the third time during the pandemic have started to consider unpaid leaves as they are unable to meet the salaries of their employees.

Cafes, restaurants and bars, who have already been in a difficult situation, have also started putting their employees on unpaid leave.

"We are bankrupt"

The chair of the İstanbul Union of Chambers of Merchants and Craftspeople, Faik Yılmaz, said, "Our request was the continuation of the short-time work allowance at least until the end of the year. This was not followed. If only it would continue until June..."

Noting that there is 98 billion lira (12 billion USD) in the Unemployment Insurance Fund, Yılmaz said, "Businesses of tradespeople are closed. They are closed on Saturday and Sunday. No one can do business. There will be another closure in Ramadan.

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"However, the government should have thought about this. With the money in the Unemployment Insurance Fund, they could have supported tradespeople and workers for months. But they have thrown people to the lions now.

"Many tradespeople are bankrupt. Many shops don't open. Because registry closures are subject to e fee, businesses don't appear to be formally closed. If tradespeople want to formally close their businesses, they should make a closure payment to the Registry.

"We are dead, the municipality gave us a funeral coach and a coffin, it gave a bus for people to go to the cemetery, it also gave halva and pilaf but the state says, 'Rise from your coffin, pay the closure money and rest again. We have been dead aristocrats without knowing it!"

"Problems of workers haven't been solved"

The spokesperson of the İstanbul Workers' Unions Branches Platform, Banu Tuna, said that thousands of employees will become unemployed after the end of the layoff band on May 17.

"We are talking about the negative effects of the lift of the short-time work allowance but neither the short-time work allowance nor the layoff band are regulations that could solve the problems of workers," she said.

"Bosses found a way to break the layoff ban by using Code 29, there is currently no such ban in practice," she noted, adding that workers' should be put on paid leave with full salaries in such a period.

While layoffs have been banned due to the pandemic since last March, there is an exception for "behaviors that do not comply with the rules of morality and goodwill" as per article 25/2 of the Labor Law, also known as "Code-29."

Employees dismissed upon Code-29 also lose their right to severance pay.

More than 176,000 people were dismissed based on Code-29 last year, according to the Social Security Institution. (HA/VK)