The big factor holding back the U.S. economic recovery: Child care #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

The big factor holding back the U.S. economic recovery: Child care

Econ

Jul 04. 2020Manda Jaramillo holds her 10-month-old son Lucas Jamarillo while Stephanie Strother takes his temperature at Penn Quarter KinderCare in Washington, D.C. on June 26. MUST CREDIT: Photo by Manda Andrade-Rhoades for The Washington PostManda Jaramillo holds her 10-month-old son Lucas Jamarillo while Stephanie Strother takes his temperature at Penn Quarter KinderCare in Washington, D.C. on June 26. MUST CREDIT: Photo by Manda Andrade-Rhoades for The Washington Post

By The Washington Post · Heather Long · NATIONAL, BUSINESS, FEATURES, HEALTH, PERSONAL-FINANCE, KIDS, PARENTING 
The child-care crunch triggered by the pandemic has rapidly become a crisis for many workers and companies that is hindering the economic recovery, disproportionately harming women, and threatening to leave deep scars for years to come.

A consensus is emerging among top economists and business leaders that getting kids back into day cares and schools is critical to getting the economy back to normal. And the American Academy of Pediatrics warned this week that keeping children out of school in the fall would threaten a degree of “social isolation” for children that could lead to mental and physical harm.

Children maintain social distancing while riding scooters indoors at emergency child care provided to health care workers in San Francisco at the beginning of the coronavirus pandemic in March. MUST CREDIT: Photo by Max Whittaker for The Washington Post

Children maintain social distancing while riding scooters indoors at emergency child care provided to health care workers in San Francisco at the beginning of the coronavirus pandemic in March. MUST CREDIT: Photo by Max Whittaker for The Washington Post

Yet many school systems are discussing only a partial reopening in the fall or remaining virtual, and up to half of America’s child care centers may shut permanently since they can’t survive financially, industry leaders warn, leaving families with even fewer options.

As parents struggle with this new reality, some employers are not showing much flexibility. Florida State University announced that effective Aug. 7, employees can no longer care for children while working remotely.

The impact of the lack of child care won’t be evenly distributed, say economists and other experts. While big companies might be able to provide white-collar workers with generous work-at-home flexibility, blue-collar and “essential” industries often can’t. That’s expected to disproportionately affect low-income women – who have already been hardest hit by the crisis – as well as smaller businesses.

If schools and child-care centers remain closed, German researchers estimate 8.4 percent of economic activity in Europe won’t happen, a substantial loss that could hit the United States similarly, researchers say.

Small business owner Bridget McGinty made the painful decision to close her restaurant in May, partially because she and many of her staff have small children they couldn’t find care for.

“I’m a single mom, and my son won’t be in school. It was just impossible to take on that much work physically and mentally of reopening,” said McGinty, who ran Tastebuds in downtown Cleveland for two decades.

McGinty is not alone. Eleven percent of the U.S. workforce – 17.5 million workers – are taking care of young kids on their own and will be unlikely to return to work full time until schools and day cares fully reopen according to an analysis by the University of Chicago’s Becker Friedman Institute.

Large companies like Microsoft, Google, Medtronic and Evergy have expanded paid leave to make it easier on families struggling to find child care during this pandemic, but not all businesses have the resources to help.

“If schools don’t open, a lot of people can’t go back to work,” Jamie Dimon, chief executive of JPMorgan Chase, said in an interview.

Eliza Navarro was forced to quit her nursing job at a hospital in San Benito, Texas, when she couldn’t find child care for her two children. It’s been a devastating financial blow, but she felt out of options.

“I want to work, but because of everything that happened with schools and day cares closed, I wasn’t able to,” said Navarro, 33, a single mom who is the custodial parent. “I’ve been working since I was 17. I love working. I love my patients and my job.”

Thirteen percent of U.S. parents had to quit a job or reduce their working hours due to a lack of child care, according to survey of 2,557 working parents conducted by Northeastern University from May 10 to June 22. The survey found parents were losing an average of eight hours of work a week – the equivalent of a full day – because they had to address their kids’ needs.

Economics professor Alicia Sasser Modestino, who led the study that has not been made public yet, said even she was surprised how much of an effect child-care challenges are having on America’s workforce.

Parents who can work from home are struggling to produce the same amount of work while balancing child-care. As the mom of two boys under 6, Karin Brownawell has come to dread videoconferences.

In late March, on her first video chat with her top bosses, she told her sons to play in the backyard and not come inside unless it was an emergency. Ten minutes into the call, her 3-year-old burst into the kitchen and yelled at the top of his lungs, “Mom, I have to poop!” 

She had to leave the video chat to deal with it.

“I’m way more productive when my kids aren’t there,” said Brownawell, 38, a licensed clinical social worker in Mechanicsburg, Pa. “It’s an anxiety roller coaster. You are trying to prioritize not just your workday, but your kids’ schedule.”

As stressful as it’s been, Brownawell is thankful she can work from the desk that’s wedged between her kitchen and living room. Her husband is an essential worker for the U.S. Postal Service and can’t alter his schedule.

Relief for parents like Navarro and the Brownawells looks unlikely until there is a vaccine.

Tom Wyatt, chief executive of KinderCare Learning Centers, said in an interview that his inbox is filled with parents begging him to find a place for their children. All 1,500 KinderCare centers are open now, but most classrooms are restricted to 10 children, down from 24 before the pandemic. With costs up and enrollment limited, the company isn’t making money. “Obviously, that is not sustainable,” he said.

“The child-care industry is going through a gut-wrenching challenge right now,” Wyatt said. “We literally have waiting lists at this point.”

Already, there were not enough day-care spots, and quarter of child-care workers – 258,000 people – have lost their jobs. Wyatt says without aid from Congress in the coming months, thousands of day cares could close, exacerbating the crunch.

Industry groups are urging Congress and the Trump administration to approve $50 billion in federal aid to ensure child-care centers don’t go out of business and families, especially those looking for work, can afford to send their kids. Business leaders and economists have joined that call.

“The child-care industry supports all others. Without it, a lot of these other industries are not able to get back to where they need to be,” said Cheryl Oldham, vice president for education policy and the U.S. Chamber of Commerce.

The burden is falling heavily on women. Research shows that in “child-care deserts” where there aren’t enough day-care spots for kids, there’s a 12 percentage point drop in mothers’ labor force participation. There is no detectable impact on fathers. During this pandemic, more women have lost their jobs than men, Labor Department data show. Economists are deeply worried the pandemic will set American women’s job prospects back for years.

So far, Congress has allotted $3.5 billion for child-care help during the pandemic. That’s less than the emergency aid for Delta Air Lines, notes Haley Swenson, deputy director of Better Life Lab, a left-leaning think tank. Congress is also debating heavily whether to extend unemployment benefits beyond July 31, but many economists think child care is a bigger issue.

“It’s amazing to me how many people are worried that Americans won’t go back to work because unemployment pays too darn much,” said Betsey Stevenson, a University of Michigan economics professor. “I’m way more worried about people not going back to work because they have no child care.”

Almost a third of the U.S. workers have children under 18 at home.

It’s hard to put an exact dollar figure on how much kids interrupting their parents’ workdays is hampering the economy, but Nicholas Bloom believes the productivity loss is substantial. Most parents of young kids are ages 30 to 45, census data show, which are prime working years.

“You can’t run an economy with so many people aged 30 to 45 missing. It’s like the doughnut economy. You just have younger and older workers and none of the middle-aged people working,” said Bloom, a professor at Stanford Graduate School of Business.

Bloom is known for a study he did that found working from home makes workers way more productive, but he says that is not true during the pandemic. His study looked at 1,000 Chinese workers who did not have kids at home during working hours, a complete contrast to the situation now. Bloom himself has been attempting to work from home lately with four kids. (During a phone call with The Washington Post, he had to bribe his 4-year-old with TV and candy to be able to talk to a reporter.)

He’s also concerned about a drop in research and high-level thinking that tend to lead to breakthrough ideas. A study of 4,500 top scientists in the United States and Europe found a “sharp decline” in research during the pandemic. Child-care problems were the biggest factor.

In an early warning sign, new patent applications to the U.S. Patent and Trademark Office fell 9 percent this May vs. May 2019, the Information Technology and Innovation Foundation found.

Finding affordable child care has long been a problem in the United States, but the pandemic has caused a unique challenge: Families can no longer rely on grandparents for help.

Erin Palmer, 37, is an emergency room nurse in Salt Lake City. She works the 6 p.m.-to-6 a.m. shift and used to leave her 7-year-old daughter with her parents, but she the risks are too high to do that now. Palmer nearly quit her job as she struggled to find another option. An overnight babysitter on Care.com cost $30 an hour – more than she makes as an ER nurse.

In the end, Palmer’s younger brother and his girlfriend scaled back their work hours to help out, but it isn’t sustainable, she said.

“If schools don’t reopen in the fall, I don’t know what I am going to do. Mentally, emotionally, financially, I’m not prepared for that,” Palmer said.

Congress passed a law in March that was supposed to help parents who had no choice but to stay home to care for – and educate – their children get unemployment aid while schools and day cares are closed. Getting that money has not been easy for Navarro, the nurse who had to quit her job in Texas.

Navarro says she filed her first unemployment claim ever in April and received one payment. Then the money stopped. After days of calling, she learned Texas keeps marking her case as “under review.” She’s been saying a daily prayer to Saint Jude, the Catholic patron saint of desperate cases, that she can get another payment before July rent is due.

“Until this spring I was always able to pay all my bills. This pandemic has totally changed my life,” Navarro said. “My son just told me what he wants for his birthday, and for the first time, I might not be able to get it.”

SET flat despite signs of US recovery #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SET flat despite signs of US recovery

Econ

Jul 03. 2020

By The Nation

The Stock Exchange of Thailand (SET) Index closed at 1,372.27 today (July 3), down 1.86 points or 0.14 per cent. Total transaction volume was Bt71.138 billion with an index high of 1,380.08 and a low of 1,370.37.

In the morning session, a stock analyst at Krungsri Securities expected the index to rise to between 1,385 and 1,390 on hopes of a US economic recovery after the US June non-farm payrolls rose by 4.8 million jobs and the June unemployment rate dropped to 11.1 per cent.

“The market was also buoyed by the rising crude oil price after Opec-plus cut June’s daily crude oil exports by 1.84 million barrels to 17.2 million barrels,” the analyst said.

The analyst cautioned investors to beware of mass sell-offs amid uncertainty over a second wave of Covid-19 in the US, and the tight SET valuation with the index’s price to earnings ratio standing at 19.5.

The 10 stocks with the highest trade value today were STGT, STA, GULF, SUPER, PTT, KBANK, MINT, AOT, EA, and BGRIM.

As of 4.30pm, the price of crude oil had dropped by US$0.53 or 1.30 per cent to $40.12 per barrel, while the gold price dropped by $4.30 or 0.24 per cent, to $1,785.70 per ounce.

Changes in other Asian indices were as follows:

Japan’s Nikkei Index closed at 22,306.48, up 160.52 points, or 0.72 per cent.

China’s Shang Hai SE Composite Index closed at 3,152.81, up 62.24 points, or 2.01 per cent, while the Shenzhen SE Component Index closed at 12,433.26, up 163.78 points, or 1.33 per cent.

Hong Kong’s Hang Seng Index closed at 25,373.12, up 248.93 points, or 0.99 per cent.

South Korea’s KOSPI Index closed at 2,152.41, up 17.04 points, or 0.80 per cent.

Taiwan’s TAIEX Index closed at 11,909.16, up 104.02 points, or 0.88 per cent.

Govt urged to not let opportunities offered by CPTPP pass by #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Govt urged to not let opportunities offered by CPTPP pass by

Econ

Jul 03. 2020

Kalin Sarasin, chair of the Thai Chamber of Commerce and the Board of Trade of Thailand

Kalin Sarasin, chair of the Thai Chamber of Commerce and the Board of Trade of Thailand

By The Nation

The private sector is calling on the government to make a decision on the trans-Pacific partnership as Thailand seems to be losing opportunities as Japanese businesses consider relocating to Vietnam.

Thailand has signed many free-trade agreements (FTA), but there seem to be several issues with when exactly extensive negotiations for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) should begin.

On Thursday (July 2), the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) held a seminar to discuss the pros and cons of joining CPTPP and invited members to share their experiences after joining the agreement.

Kalin Sarasin, chair of the Thai Chamber of Commerce and the Board of Trade of Thailand, said CPTPP membership is an important issue for the government as it will require every sector to be prepared, including the private sector and various sectors of the society.

Also, he said, if Thailand joins the partnership, it will have to spend many years negotiating deals with other members.

Kalin said he has discussed the issue with the Japanese Chamber of Commerce (JCC), which said Japan wants Thailand to join the partnership as it wants to maintain its long-term investment ties with the Kingdom, which it considers an investment hub in Asean. However, after Vietnam joined the partnership, many Japanese companies have decided to shift due to better perceived benefits.

Delaying the signing of the pact will make things more difficult for Thailand, as the partnership already has 11 members and the government will have to negotiate its standing with them first. If these negotiations are delayed and there are new members, then Thailand will have to negotiate with more countries, which will further delay the membership process.

“The government should make the decision soon, because otherwise Thai businesses will lose out,” Kalin said.

Meanwhile, Auramon Supthaweethum, director general of the Trade Negotiations Department, said she can’t confirm if Thailand will submit its application within the August 5 deadline as the special panel studying the pros and cons of CPTPP has extended its study by another 60 days. Joining CPTPP may take seven to eight years, about as long as the Regional Comprehensive Economic Partnership did, she said.

Japanese investors eye Vietnam

Ryohei Gamada, a senior economist at Japan External Trade Organisation (Jetro), told the seminar that a survey of 1,000 Japanese businessmen showed that most of them (41 per cent) wanted to invest in Vietnam now that it has entered the CPTPP. Only 23 per cent said they were willing to stay in Thailand and would support it in the long-term if it joined the pact.

Joining the CPTPP has helped boost Japan’s economic value by 7.5 per cent of its GDP, which is worth more than its FTA with the European Union.

Meanwhile, Tran Thi Thanh My, commercial counsellor of trade at the Vietnamese embassy in Thailand, said that Vietnam like Thailand has free-trade agreements with many CPTPP members, such as Canada, Peru and Mexico. The value of its exports to the 10 CPTPP partners covers 50 per cent of its exports and further widening the sector.

Hugh Robilliard, the Australian embassy’s political and economic counsellor, told the seminar that CPTPP has helped his country’s GDP to grow 5.4 per cent now that the value of exports to member countries has risen from 26 per cent to 70 per cent.

Australia currently exports to 10 partner countries with tax exemptions of up to 98 per cent on all products.

The partnership has also had a positive impact on Australia’s ties with partners such as Japan, which is starting to import and exchange more products like beef, rice and sugar. Robilliard said in the next decade or so, Australia will receive better economic benefits with its per capita income rising by 0.5 per cent and revenue rising by 1 per cent due to a rise in trade of goods and services.

Meanwhile, opposition Pheu Thai Party has said it will have its party leader Sompong Amornvivat observe the discussion the special CPTPP will hold next week. The opposition party has recently said it opposes the agreement, which is also opposed by coalition members Democrat and Bhumjaithai parties.

SRT unveils ambitious plans for expansion and boosting revenue #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SRT unveils ambitious plans for expansion and boosting revenue

Econ

Jul 03. 2020

By The Nation

The State Railway of Thailand (SRT) has ambitious plans to expand its network as well as boost income from its non-core businesses.

Bids will be invited by the end of the year for two new dual-track train lines and land lease agreements will be revised to open the transit-oriented development Hua Hin railway station.

New SRT governor Nirut Maneepan is pursuing three strategies: increasing capacity in rail transportation services; increasing revenue and reducing expenses; and driving and raising work efficiency

The plan to increase revenue will look at increasing investment in railway infrastructure development, such as the push for dual-track railway project, high-speed train, red line suburban train system, and an extension of the railways.

SRT is in the process of inviting tenders for two new dual-track rail routes — Den Chai-Chiang Rai-Chiang Khong and Ban Phai-Nakhon Phanom — by the end of this year.

The Den Chai-Chiang Rai-Chiang Khong route is in the process of being proposed to the Cabinet before inviting bids, which will be divided into three contracts. After a review, SRT has found that three contracts are appropriate.

SRT has presented the study to the Ministry of Transport for consideration. Tender documents are being prepared for the Ban Phai-Nakhon Phanom line.

The SRT still plans to push for development of the dual-track railway in Phase 2, which is currently under consideration by the Office of the National Economic and Social Development Board, with seven routes.

“The SRT recognises that the opportunity for development in Phase 2. Some parts are still single track. If developed, they will all become dual-track routes, such as Pak Nam Pho-Den Chai, Khon Kaen-Nong Khai etc,” he said.

The second plan covers improvement in land management. SRT has set guidelines for tenants to be of the same standards, and also fix the problem of land encroachment. The SRT found that it had approximately 20,000 rai of land but they earned only Bt2 billion in revenue on average per year, which is very low, he said.

Regarding the development plan for the areas around the train stations in provinces such as Khon Kaen and Nakhon Ratchasima railway stations, he said they have the potential for development to generate more revenue from non-core businesses for the organisation, besides making the train stations the centre of the city.

He added that the development of Bang Sue Central Station, Area A, has not been speeded up as the development is in the Bangkok area. There will be many commercial area developments such as Makkasan station. Therefore, SRT must review the requirements when accelerating the auction or developing a commercial area in Bang Sue Central Station to lure private development.

Meanwhile, the Administrative Court has received a request filed by the SRT asking the court to investigate issues about the incorrect registration of Hopewell (Thailand) Co Ltd. The Red Line suburban railway project is expected to be open by May 2021 while the bus management model under study is expected to finish within two months.

SEC proposes provident-fund boost for ageing society #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SEC proposes provident-fund boost for ageing society

Econ

Jul 03. 2020SEC secretary-general Ruenvadee Suwanmongkol SEC secretary-general Ruenvadee Suwanmongkol

By The Nation

The Securities and Exchange Commission (SEC) has proposed guidelines for amending the Provident Fund Act BE2530 (1987) to boost provident funds (PVD)s’ efficiency as a tool supporting long-term retirement savings.

SEC secretary-general Ruenvadee Suwanmongkol noted that Thailand will next year become a full-scale ageing society with the elderly accounting for 20 per cent of the total population. 

“Yet, most of today’s documented workforce are unlikely to earn adequate income after retirement. Given this landscape, retirement savings has become a part of the national agenda stated in the 20-Year National Strategy, the 12th National Economic and Social Development Plan and the Capital Market Development Plan.” 

PVDs are a major source of savings supporting post-retirement living, but only 3 million private sector employees (20 per cent) have PVD accounts. 

Moreover, only 24 per cent of PVD members are likely to have more than Bt3 million in retirement savings, said Ruenvadee. 

To increase PVD efficiency in supporting employees’ retirement and creating adequate income for the documented workforce after retirement, the SEC Board proposed four guidelines:

1. to support current PVD employers in signing up employees for PVD membership automatically unless they opt out.

2. To promote a mechanism for PVD to automatically choose investment policies for members who do not make a choice themselves by considering members’ age, risk-tolerance, etc.

3. To enhance PVD efficiency by improving member protection mechanisms: qualifications, roles and responsibilities of the Fund Committee must be clearly specified, members must be notified of their savings sufficiency through post-retirement savings forecast, and standards of regulations and PVD registration must be specified, to reduce private sector burdens and increase savings flexibility for members.

4. To develop PVD in support of the draft National Pension Fund Act, which prescribes a compulsory pension fund for the documented workforce in the private sector.

EEC projects like turning seawater into drinking water get approved #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

EEC projects like turning seawater into drinking water get approved

Econ

Jul 03. 2020

By THE NATION

The government subcommittee steering mega projects approved the development of water projects and water-resource management in the East of the country until 2037.

One key project is the production of fresh water from seawater, which will kick off in the next couple of years and will aim to produce at least 200,000 cubic metres of water daily.

These projects will serve the Eastern Economic Corridor (EEC).

SEC extends TMBAM Eastspring’s liquidation period #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SEC extends TMBAM Eastspring’s liquidation period

Corporate

Jul 03. 2020

By The Nation

The Securities and Exchange Commission (SEC) has approved the proposal by TMBAM Eastspring to extend the liquidation period for another 90 days to enable sales of remaining assets worth Bt80 billion.

Boonchai Kiatthanawit, director of TMB Asset Management (TMBAM), said that after the TMBAM Eastsping closed four mutual bond funds at the end of March, the company had repaid Bt68.671 billion to bondholders, accounting for 34 per cent to 55 per cent of assets in each bond fund.

“The value of four assets at the end of last year was Bt246 billion, while the value after closing the bond funds in April this year was Bt149.069 billion,” he said.

“Currently, four bond funds still have assets worth Bt80 billion. If we accelerate the sale of assets inconsistent with the market liquidity, the value repayment to bondholders will drop significantly.”

He said that to maintain bondholders’ benefits and sell assets at a reasonable price, the SEC has approved the TMBAM Eastspring proposal to extend the repayment period for another 90 days until October 7 from the previous liquidation period on July 9.

“The company will sell assets at a reasonable price to maintain bondholders’ benefits within 90 days,” he said. “Meanwhile, we are still cooperating with partners on selling assets via various market channels to repay bondholders as soon as possible.”

He expected the bond market to recover in the second half of this year from the government’s supportive measures, adding that there was no abnormal behaviour among investors while redeeming fund units after the bond funds were closed.

“We have to monitor various factors that may affect the company amid the market volatility to gain confidence among bondholders,” he added. “Meanwhile, we will provide information about the market situation, funds under the company’s management, and investment guidelines for investors.”

Huge MSC Istanbul cargo ship docks at Laem Chabang Port #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Huge MSC Istanbul cargo ship docks at Laem Chabang Port

Corporate

Jul 03. 2020Photo credit: Hutchison Ports ThailandPhoto credit: Hutchison Ports Thailand

By THE NATION

Hutchison Ports Thailand (HPT) said that the company had welcomed the MSC Istanbul cargo ship at its D1 dock in Laem Chanbang Port in Chonburi province on July 1.

“This is the first time that a cargo ship so grand in size has docked in Thailand. We are planning to open our docks to more ships in the same grade that come from Europe, Asia and western Americas every week,” said the company.

The MSC Istanbul is Mediterranean Shipping Company’s largest cargo ship with a capacity of 16,000 ETUs (equivalent twenty units, or 20-foot long containers). It is 399 metres long and 54 metres wide and can carry a maximum load of 176,490 tonnes.

“The ship is part of the 2M Lion-Jaguar weekly shipping line that links Thailand’s exporters to overseas markets in Europe, Asia and Americas and helps boost the economy in the Southeast Asian region,” added the company.

Hutchison Ports Thailand is a specialised cargo shipping operator located in Laem Chabang Port, Thailand’s largest port in Chonburi province, only 130km. southeast of Bangkok. The company provides one-stop cargo shipping services as well as operates dual-track transport routes to product distribution centres nationwide. HPT operates A2, A3, C1, C2 and D1 docks in Laem Chabang and is now developing the D2 and D3 docks, scheduled to open in the near future.

American Air will have 20,000 more employees than needed, it says #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

American Air will have 20,000 more employees than needed, it says

Corporate

Jul 03. 2020American Airlines employees wear take coronavirus precautions while checking in a traveler in June 2020. MUST CREDIT: Washington Post photo by Andrew Harrer
American Airlines employees wear take coronavirus precautions while checking in a traveler in June 2020. MUST CREDIT: Washington Post photo by Andrew Harrer

By Syndication Washington Post, Bloomberg · Mary Schlangenstein · BUSINESS 

American Airlines will have over 20,000 more employees than it needs to operate a deeply reduced flying schedule as travel demand slowly rebuilds amid the coronavirus pandemic.

The estimate represents about 20% to 30% of American’s expected workforce later this year. Not all would necessarily be furloughed after Sept. 30, however, because the carrier is continuing efforts to trim jobs through leave, early retirement and voluntary separation programs, the airline’s top executives said.

“We still have work to do to right-size our team for the airline we will operate,” Chief Executive Officer Doug Parker and President Robert Isom said in a memo to employees Thursday. “We are committed to resetting the airline using a different playbook than the one of past crises where last-in, first-out furloughs were the expected result.”

American’s sobering outlook illustrates the depth of the airline industry’s challenge to recover from the biggest collapse in travel demand. Carriers worldwide have parked jets, slashed flying, boosted borrowing, trimmed workforces and in many cases received billions of dollars in government aid. While leisure travel is slowly returning, passenger numbers are about a quarter of last year’s levels. A full rebound isn’t expected until at least 2023.

American has reduced its summer 2021 international schedule by 25% from pre-pandemic levels, signaling a limited recovery. The company has also notified flight attendants that it has as many as 8,000 more of them than it needs. American said it would cut staffing on some flights, close two bases for flight attendants and reduce the size of others.

In addition, American last month said its officer ranks would shrink by 30%. It was the first phase of changes under which almost a third of management and support staff will be cut.

U.S. carriers are prohibited from implementing mass involuntary layoffs through September under the terms of the government’s aid for payrolls, airlines’ largest expense.

American said Thursday that it signed a term sheet with the U.S. Treasury for an additional $4.75 billion loan, and expects to finalize the deal this quarter. The financing, in addition to the $5.8 billion in payroll support received earlier, brings liquidity to $15 billion, the Fort Worth, Texas-based carrier said. American has reduced its daily cash burn to less than $35 million at the end of June from $100 million in April.

The airline took in more than $1 billion in cash receipts in June, up from $11 million in April but far below the average of $4.2 billion monthly during the same periods of 2019, Parker and Isom said. American’s average number of filled seats has climbed to 63% last month from 15% in April.

The company flew 4.2 million customers in June, compared with between 17 million and 19 million a year earlier.

KBank deals with balancing act of helping borrowers and keeping shareholders happy #ศาสตร์เกษตรดินปุ๋ย

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

KBank deals with balancing act of helping borrowers and keeping shareholders happy

Corporate

Jul 03. 2020Patchara Samalapa, president of KasikornbankPatchara Samalapa, president of Kasikornbank

By The Nation

Kasikornbank assured shareholders on Thursday (July 2) that it will recover the cost it has incurred from putting a moratorium on debt repayment and from other financial aid extended to borrowers hit by the Covid-19 crisis. 

Kasikornbank, like other commercial banks, has been offering different types of assistance to borrowers, including a moratorium on debt repayment, reduction on interest rate and new liquidity injections. The bank implemented special financial packages to deal with the impact of Covid-19 outbreak since April, many of which allowed debt repayments to be put off by up to six accounting periods. 

Patchara Samalapa, president of Kasikornbank, said on Thursday that the bank has so far helped 650,000 borrowers, both individuals and corporates, by halting principal and interest repayment. Their combined outstanding loans are worth Bt828 billion. 

The bank also granted new loans to 94,000 borrowers worth Bt156 billion, up 30 per cent from last year, he said. 

Kasikorn has also allocated Bt1.5 billion for soft loans to help companies continue employing their workers. This package also covers zero-per-cent 10-year loans for small-sized businesses. The bank has so far given Bt1.14 billion to companies so they don’t have to lay off 49,000 employees. 

Patchara said the bank is not that concerned about individual borrowers but is instead focusing more on the Bt746 billion owed by businesses, principal repayment of which has been put on hold. The bank has suspended principal repayment for 293,000 businesses and granted new loans worth Bt143 billion to 60,000 businesses, he said. 

“It is impossible to predict how many of these businesses will be able to survive and come back after the crisis ends,” he admitted, referring to uncertainty stemming from fears of a second wave of infections or other new negative factors. “Maybe only 60 per cent of them will be able to rebuild their business.” 

However, he assured shareholders that they should not worry as most loans are backed by collaterals, while the average loan-to-value (LTV) ratio is 81 per cent – as in a debtor borrowing Bt100 will have to provide a collateral worth about Bt120.

He also conceded that the bank has taken money from shareholders’ pockets to help borrowers. “Thank you to those who have not sold our shares, but many did, which caused the bank’s shares to fall sharply,” he said. 

The Bank of Thailand’s and government’s financial aid measures have pushed commercial and state-run banks to provide support to both retail and corporate clients. 

The central bank has also recently told banks to stop paying interim dividends for 2020 and also prohibited them from buying back shares as it wants to ensure banks have enough capital needed to run their business. 

Patchara said Kasikornbank’s deposits have risen 13 per cent since early this year to Bt934 billion as of June 22. This suggests that corporates have cash in hand, though the new deposits come from those who are not participating int the loan-repayment moratorium, he added.