“This is not wartime,” thundered our business heavyweights this week. That’s probably a relief or they might be asked: “What did you do in the war, daddy?”
Profiteered over patriotism? Ludicrous.
Fled to foreign climes? Heaven forbid.
Blew up a few sacred sites? Surely not.
Sent dick pics to female staff? These are difficult times.
Yep, despite the many, many failings currently being exposed in corporate Australia, the bosses of Wesfarmers, CSL and BHP joined forces this week to call for an end to Victoria’s “wartime curfew”.
That’s not to say there isn’t genuine concern about the overkill of a draconian curfew on top of already severe lockdown provisions, but being lectured by the corporate class is a bit rich to say the least.
Still, at least they were speaking from the actual home front — which is more than can be said for Australia’s richest man Andrew “Twiggy” Forrest. He recently gave an interview to The Australian Financial Review from Croatia (or was it Afghanistan?), where he has decamped for the duration.
Not content with digging up the taxpayers’ resources and shipping them overseas, Fortescue Mining Group (FMG) is now exporting itself to the rest of the world because, as Twiggy tells the AFR: “Fortescue’s culture is easily its greatest asset in Australia.” And here was I thinking FMG was making its record billions from our iron ore.
So how is everyone else faring on the frontline of Australian business?
There’s Victoria’s Solomon “cry me a river” Lew, whose Premier Investments boasted in its latest results it was enjoying record profits thanks to government subsidies, a rent strike and delaying payments to suppliers thanks to the war — sorry, pandemic.
He’s not alone. According to recent research from proxy group Ownership Matters, 17 of the top 300 companies in Australia that received government subsidies paid dividends to investors totalling more than $250 million.
It found a further 25 companies in the ASX 300 who had been given JobKeeper support payments paid their executives bonuses totalling more than $24 million.
And this is despite the head of the industry lobby group, the Business Council of Australia (BCA), specifically urging members not to do this.
BCA chief Jennifer Westacott said in an interview the week before the report that companies receiving JobKeeper should not give bonuses and should “think twice” about dividends.
By the sound of it, some didn’t even think once.
Thank goodness Australia Post has not yet been privatised; a government minister was able to make a quick call bringing that board into line after CEO Christine Holgate’s embarrassing interview pondering a bonus.
We can probably also blame wartime delays for the almost three months it took for Rio Tinto chief executive Jean-Sebastien Jacques to step down after overseeing the destruction of sacred Aboriginal sites in the Pilbara.
Meanwhile, one front on which there has been an advance is sexual harassment. Executive groping, inappropriate pictures or emails and other unacceptable behaviour is finally causing some casualties, as AMP and QBE can attest.
War is hell.
The industry lobby groups and major retailers lining up to attack and undermine the Victorian Lockdown must be very careful about what they demand.
There is a ton of data now that shows if we ease restrictions AND “tolerate” a higher incidence of community transmission and Active Cases, the economy will contract potentially 20%.
This is what’s happening in Sweden, UK and a host of states in the USA where there’s minimal/no Government lockdown, but the self-imposed lockdown by the general community (avoiding exposure) is economically devastating….and longer lasting.
Wesfarmers etc must show a little more integrity and also be specific about what they regard as acceptable numbers for:
when they propose easing.
It is also ridiculous to regard increased Track and Trace as a way in which we can safely ease lockdown restrictions.
The maths does not work; an Active Case that was close to twenty people during the “infectious period” is manageable, an Active Case that was close to hundreds makes the job impossible.
So, to Retail Traders, AIG, BCA, Wesfarmers etc, if the RBA warnings about the economics of easing are wrong, give us your “hard numbers”!
You’re right dough, and the data that is coming in, supported by RBA board and numerous heavy hitters shows that hard lockdowns to bring transmission to a trickle brings about the LEAST economic damage.
Industry Groups must also consider their responsibility to workers of providing a safe workplace. Opening up only to send everybody home because there is a positive COVID case who will infect other workers is probably more damaging, because the employer is now potentially (partially) responsible for the transmission!
That explains why ScoMo wants to rein in Jobkeeper expenditure – the filthy rich are making off like bandits, and this is too much even for his sweet neoliberal disposition.
For those who want to open up the economy, we should flip the question. Proponents of the ‘let her rip’ category should be asked to define exactly how many cases of Covid they would expect us to tolerate before taking action. And more importantly, how many deaths. It should not be up to people like the Victorian Premier to predict the future; let those who want action take responsibility.
The handouts over 2008-9 to American corporates well exceeded the NASA budget but the minumim wage wasn’t touched. As to corporate behaviiour try to make a link to what occurred a decade or so ago with what is occurring now.
A Universal Basic Income would have delivered subsidies to where they were most needed, the suddenly new unemployed, who would have most directly and quickly returned the largesse to keeping the economy running.
Instead, under the LNP, the leaners just keep on leaning.
Don’t be silly Norm, that’s way too sensible for this mob…
Did you link the wrong article for Christine Holgate asking for a bonus? I see nothing in the article linked.
The article references another SMH article that discusses the previous CEO attempting to conceal his $5m+ salary and mentions Chritine receiving a bonus last FY (though with only a $2.5m salary).
Was she pondering a bonus somewhere else?
From my experience it is pointless trying to communicate things like broken links to Crikey through comments, Matthew. They’re not paying attention.