Warsaw, 22^nd April 2020

 

Union on 5G: a massive opportunity for the Polish economy, a condition for the development of Industry 4.0, a necessity in the face of changes sparked by the pandemic

Technological progress, increased demand for digital services, and ultimately lasting changes in socio-economic life caused by the coronavirus pandemic – these are the main circumstances affecting the reality that 5G is not only a chance for Poland to accelerate its pace of economic development, but even as much as a necessity. To take full advantage of the available opportunities, we must launch this technology efficiently, quickly, and safely – these are the basic conclusions from the report by the Union of Entrepreneurs and Employers on the opportunities and prospects associated with the implementation of 5G in Poland.

It is an undoubted fact that an increasing share of social and economic activity is being moved to the Internet. Of the 4.5 billion people online, as many as 300 million have used the web for the first time in the past year, so virtual traffic is getting increasingly heavy. Network usage patterns are also changing. While in 2010, less than 40% of mobile phone users in the United States used them to browse the Internet, it is estimated that 75% of Internet users will only browse it using smartphones by 2025. In light of such a dynamically increasing demand, it is hardly surprising that the technologies available today are slowly exhausting their possibilities. Moreover, Internet users expect progressively newer and more widely available services, whereas the industry is constantly moving towards digitisation and automation. Ultimately, the coronavirus pandemic sparked changes in job models and leisure time activities alike, which further increased network traffic. The implementation of the 5G standard seems to be the answer to all the above challenges.

“What the coronavirus has caused is that we spend significantly more time at home,” says Cezary Kaźmierczak, President of the Union. “Regardless of whether we watch TV series during this time or participate in business video conferences, we contribute to the increase of network traffic.

Due to its technical parameters, the 5G network will enable the development of new services and products that will substantially change the economic life in Poland. Autonomous vehicles, the Internet of Things, augmented or virtual reality, remote production management – the widespread use of these possibilities, which make up the concepts of Industry 4.0 or the “fourth industrial revolution” announced in the past, will not be possible without the capacities guaranteed by the 5G technology.

“The Strategy for Responsible Development is a document which clearly outlines the desired direction of the Polish economy’s development,” says Jakub Bińkowski, Director of the Department of Law and Legislation of the Union of Entrepreneurs and Employers. “Our economy is to become one that is knowledge-based with high added value. Achieving this goal without the efficient implementation of the 5G network seems impossible”.

The Union’s experts emphasise in their report that swift action is essential. Other countries (both in Europe and Asia) have already undertaken important steps. The race for 5G is a global one. Therefore, we ought to focus on implementing this standard in an effective, fast, and secure manner. According to the authors of the report, to achieve this, it is necessary to ensure free competition as part of the selection of infrastructure providers, as well as to set restrictive technical security standards and to protect the system against dependence on one supplier.

“It is an obvious fact that 5G is a very big chance, but in the current situation, it already is a necessity to commence implementing this standard quickly. Universal access to high-speed Internet along with enabling entrepreneurs and consumers to use services based on the latest technologies is a prerequisite of our further development,” summarises Cezary Kaźmierczak.

 

22.04.2020 Report by the Union of Entrepreneurs and Employers: Implementation of the 5G technology in Poland – prospects and opportunities

 

Fot. geralt/pixabay.com

Warsaw, 8^th April 2020

POSITION OF THE UNION OF ENTREPRENEURS AND EMPLOYERS
ON THE “FINANCIAL SHIELD FOR COMPANIES”

From the very beginning of the crisis caused by the coronavirus pandemic, the Union of Entrepreneurs and Employers has emphasised the need to rapidly launch a programme to secure the liquidity of Polish companies. A significant number of entities has the ability to operate for a certain time without profits, however, deepened liquidity problems may lead to a real wave of bankruptcies. This would translate into an economic calamity, the loss of hundreds of thousands (if not millions) of jobs, and the years of unprecedented economic growth and development in Poland going to waste. We are glad that an effort was undertaken to introduce a quick and simple tool to support the financial liquidity of companies.

According to the information presented during the Prime Minister’s press conference, Polish companies are to receive as much as PLN 100 billion (4.5% of GDP) of direct financing within a very short time, of which as much as PLN 75 billion will be allocated to the SME sector. The limit of funds earmarked for a single company depends on its size category – micro-companies can get a maximum of PLN 324,000, while small and medium ones approximately up to PLN 3.5 million. Aid for companies from the SME sector is to take the form of simple subsidies paid through banks. Meanwhile, large companies can obtain loans or bonds worth up to PLN 1 billion.

According to the official communiqués, the allocation mechanism is to be simplified to the highest possible extent and based on statements. This declaration is all the more pleasing, because the liquidity support measures proposed so far as part of the ‘anti-crisis shield’ were unfortunately encapsulated with too complicated formal procedures and requirements. Declarations on the simplicity of introduced solutions seem to be confirmed by a very transparent catalogue of criteria for providing support. The prerequisite is that revenues fall by at least 25% compared to the previous month or the corresponding month of the previous year. Furthermore, this financial aid is to be granted to those entities which were banned from operating due to sanitary restrictions. In the case of large entities, financing is to be granted on more individualised terms, under which, for example, the payment of taxes in Poland should also be taken into account.

The support scheme also has a simple structure in terms of organisation. Financing for the SME sector is to be distributed through commercial banks in the most digitised way possible. Large companies are to be attended to directly by the Polish Development Fund. Financing will be granted on the basis of simple collateral, e.g. promissory note, and the funds may be allocated to cover the costs of conducting business, in particular employee remuneration.

According to the mechanism presented, part of the support provided is to be non-refundable. Micro-enterprises can count on the write-off of 75% of their receivables if they continue to operate and maintain average employment within a year of obtaining funds. In the case of small and medium-sized enterprises, a 50% write-off depends on these conditions, and an additional 25% may result from the loss on sales incurred by the company.

As already highlighted, large companies are to be subject to a different financing regime: they can count on loans on preferential terms, partly non-refundable, bonds or investment financing in the form of taking up shares or stocks.

The presented package of financial support for companies seems to be adequate to the level of threat resulting from the coronavirus pandemic. Companies impatiently awaited a similar project, and the Union of Entrepreneurs and Employers in almost every subsequent publication stressed the need to quickly introduce such a tool. We are glad that our voice has been heard. We trust that with this bold move the government has a chance to save many jobs and companies. Perhaps this will allow Poland to go through the crisis with dry feet (as the Polish saying goes), which would undoubtedly be a great achievement.

 

08.04.2020 Position of the Union of Entrepreneurs and Employers on the financial shield for companies

 

Fot. _Alicja_ / pixabay.com

Warsaw, 8^th April 2020

 

APPEAL TO THE GOVERNMENT FOR A SAFE RETURN TO WORK

 

The government must immediately expand the Anti-Crisis Shield with a consistent return to work programme. Without this, Poland will not only waste the money allocated for financial support, but also the achievements of a whole generation of Poles.

• The Anti-Crisis Shield must be armed with an economic recovery program,

• PLN 220 billion in aid for enterprises at risk,

• The Danish company reactivation programme possible to implement in Poland.

The Polish government, following in the footsteps of other countries, adopted an anti-crisis package designed to protect companies and their employees from the effects of the coronavirus epidemic. The program, however, has many shortcomings and is insufficient, which is why Poland is in need of the Anti-Crisis Shield Part 2. We consider it essential to exempt all SME operations from social contributions for 3 months and to introduce a liquidity package launched for all companies on a promissory note up to 15% of their last year’s turnover (guaranteed by the National Bank of the Republic of Poland – NBP). All this should and can be financed by debt and giving up new social programs (except for 500+ programme for the second+ child).

Nevertheless, current (and future) programmes will accomplish nothing unless we go back to work. The state has no money of its own and will not last long cut off from tax revenues. Taxes do not pay themselves. Taxes are paid by working people and companies. We have to get back to work. Otherwise we will go bankrupt – regardless of the taxes that will be invented and imposed and the declared aid programmes for companies and employees.

We are risking to lose 30 years of development of Poland.

We appreciate the efforts and openness of the government, but a plan without a strategy to get out of the crisis is not a plan, but just an ad hoc defence tactic. The crisis will not end on the same day the epidemic is over, but on the day most Poles return to work and companies will be able to function relatively normally. That is why we need a roadmap, a comprehensive programme to outline the steps we need to take to resume our companies’ operations and provide jobs for people who are uncertain of what tomorrow brings. We are aware that nothing happens overnight. We know that it is difficult to predict how the epidemic will develop, but the uncertainty and lack of perspective will kill many more companies than it would appear from a simple balance sheet of losses.

Entrepreneurs need an approximate time frame, and if not a time frame, then conditions in which they can wake their companies up from a state of lethargy. Just as we plan sickness and death curves, we should also plan a return-to-work curve. At what variables can we consider re-opening a company? This way, we will create a chart that will not only tell us how many people have died and how much our situation deteriorates daily, but will also give us some prospects of getting out of this economic struggle. For entrepreneurs facing today the decision whether to dismiss employees or fight for survival, this could be information saving hundreds of thousands of jobs and sustaining hope for normalcy – the most scarce product in stock nowadays.

Denmark can serve as an example in this case. A country which, just like Poland, took the threat of the epidemic very seriously. A few hours before Poland, all Danish borders, kindergartens, schools and most of the activities that were associated with direct contact of people were closed and shut down. Today, in the same spirit of responsibility, their government is preparing to gradually lift restrictions and reopen companies.

The Danish anti-crisis programme was thoroughly thought out and focused on the protection of critical social fabric, which is the relationship between the employee and the employer. The Danish government acted faster than its Polish counterpart, more aggressively and on an incomparably larger scale in terms of both the scale of financial support and the introduction of restrictions and bans. They were successful. Employees kept their jobs, the virus is wasting away. Now the most pressing issue is for companies to start earning money again. Otherwise, all the help will be in vain.

The return-to-work programme must be an integral part of the Anti-Crisis Shield. The billions we have spent and will spend on protecting Polish employees will last for a few weeks. After Easter, we will be back in the same place, only poorer for the money spent. Unless we resume economic activity, 10% our GDP will go down the drain. No economic profits, only political losses for those who promised stability.

While maintaining the necessary flexibility and observing all security measures, we should reverse the current thinking pattern and restrict economic activities only of those companies that under no circumstances can reopen. Others, as long as they are able to keep adequate security measures in place, should be allowed to gradually resume their operations. Since most grocery stores have learnt to operate under these difficult conditions, most offices and institutions can certainly open up, not to mention services where customer contact is much more limited.

We consider the accusation of putting the companies’ interests above the safety and lives of Poles particularly cynical and unsuccessful. Poles, like the Danes, as Prime Minister Helle-Thorning-Schmidt said, will never be safe locked up in their homes if they have nothing to return to. This, of course, applies to all of us, though not to an equal degree. People and companies directly affected by the obligation to keep distances, limited direct contacts, travel bans, and border closures suffer the most from this downtime. The vast majority of these are small and medium-sized transport companies, restaurants, workshops, beauty salons, sales salons, the clothing industry, hairdressers, service outlets and hundreds of others. A total of 10 million people who cannot rely on a fixed salary or government jobs. But if we don’t go back to work, the latter group may not be there soon either.

OECD estimates show that four weeks of paralysis of the Polish economy equals 28% our annual national income. Each subsequent week is a shift back in time to the age of double-digit unemployment, the pauperisation of a significant part of society and the wasted opportunities of the next generation of young people. The virus will eventually be defeated and the vast majority of the population will never even be at high risk. Most will learn to minimise the risks. The recession, however, will remain in the public memory for all time as a symbol of the rule of current political formation.

The Union of Entrepreneurs and Employers

 

Appeal to the Government for a safe return to work

 

Fot. Free-Photos / pixabay.com

Warsaw, 10^th April 2020

 

#ReturningToWork
Actions to prevent and curtail the pandemic in the production sector

 

Yesterday, the Union of Entrepreneurs and Employers presented a plan of going back to work for the entire economy and in particular for those industries, whose activity was limited due to government restrictions.

The Union calls for the immediate implementation of the plan how the Polish people can return to work. The wealthiest countries of the European Union have already planned to gradually lift restrictions and resume the economy after Easter. OECD data show that losses in Poland resulting from the lockdown can reach as much as 28% of Poland’s GDP. This would be one of the worst results among developed countries. If Poles do not return to work immediately, then both Anti-Crisis Shields and the billions of zloty to stimulate the economy will be wasted. We simply cannot afford that outcome.

Herein, we present you the recommendations of the Union for the industrial production sector in the field of counteracting CODIV-19 infection. The study is based on experience and proven practices implemented worldwide by Procter&Gamble.

Each enterprise and management board, most familiar with the realities within their companies, will find adequate solutions and recommendations that will help them increase employee safety and significantly reduce the risk of coronavirus infection.

We recommend making use of the following solutions beginning today:

1. Conducting regular information campaigns for employees and external companies – via e-mail, TV screens, boards on the fence; sound system outside the facilities to relay police communiqués.

2. Separating parts of production facilities to eliminate contact between employees.

3. Division of factory employees from individual shifts into several teams – each team starts and finishes work on individualised times, separate places where employees are waiting for work to start.

4. Separate work entrance and exit to eliminate the possibility of contact between employees from various teams.

5. Implementation of a new entry/exit system for temporary employment agency employees to eliminate people grouping before entering the company premises.

6. Implementation of additional security at production lines workstations.

7. Public transport: change in the organisation of bus stops and bus timetables; implementation of buses dedicated only to individual teams.

8. Limiting the number of people staying in common areas in order to ensure adequate distance (e.g. staff canteen, breakfast rooms, smoking room).

9. Providing a dedicated breakfast room and toilet for each department.

10. Introduction of a contactless thermometer measurement, followed by a thermal imaging camera measurement.

11. Limiting the number of guests entering facility grounds only to necessary visits and monitoring them (introducing the medical self-assessment procedure and measuring the temperature with a non-contact thermometer in installed booths).

12. Introduction of a procedure that minimises the contact of lorry drivers in distribution centres with security and cleaning crew (e.g. distance 1.5 m, installation of booths, hand disinfection after each contact with documents, disposable gloves for drivers, separate waiting areas for drivers).

13. Installation of intercoms in all security booths on the factory premises, at the parcel pickup point and in the mail room to allow contact without the need for direct interaction, all shipments delivered at only one central pickup point.

14. Providing means for disinfecting individual work places (implemented schedule with a list of points for disinfection before starting work – on production sites and in offices). Increased cleaning frequency, regularly wiped handrails, elevator buttons and other common areas.

15. Increasing the number of stations with disinfectant and the number of dispensers with paper towels in toilets (replacing dryers with paper towels).

16. Change of all meetings to remote mode.

17. Implementation of a home office policy for employees who are able to work from home.

18. Support for employees in terms of childcare in case of schoolchildren.

19. Limitation of meetings and gatherings – implementation of the minimum 1.5 meter distance principle between employees implemented (e.g. in assembly places waiting for work to start, visual markings for places where employees should stand) introduced.

20. Introduction of the rule: giving up handshake greetings.

21. Cancellation of meetings and trainings along with implementation of online trainings where necessary.

22. Introduction of an employee canteen schedule and a change in the rules of serving meals: elimination of cash payments, introducing ready-made foiled sets, replacing salt and pepper shakers with sachets.

23. Change of work rules, e.g. administration personnel: implementation of remote assistance.

24. Limiting business trips.

25. Daily virtual meetings with business partners to ensure they implement the same procedures and keep you updated on all changes and processes.

26. Change in the rules of functioning of company stores: closing a stationary store and enabling home delivery for employees.

27. Securing the right number of protective masks for employees and training in the use of masks.

28. Development of a procedure for the event of a suspected infectious disease shared with all managers as well as setting up a separated isolation room.

29. Replacement of furniture with models enabling rapid disinfection.

30. Additional disinfection stations in drivers’ rooms and warehouses; employees are prohibited from using the toilets and showers for drivers; minimising contact with drivers (delivery documentation provided by e-mail, drivers’ keys packed in disposable plastic bags, using disposable gloves); if employees need to go outside, the driver is obliged to stay in the car.

We hope that a reasonable application of some or all of the above guidelines will ensure the safety and sense of security for employees, and will guarantee uninterrupted production capacity in industrial facilities.

#ReturningToWork

The Union of Entrepreneurs and Employers in cooperation with Procter & Gamble

 

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