CEO Update #2 - 27 March 2020
Hi Team ,
Wow what a week! There is no box of instructions that I can find in these unprecedented times. However, our senior management team have been working through the challenges, with the best interests of everyone, our team and our customers. I can imagine you are worried about your personal circumstances and that is a natural concern. I strongly believe we will get through this together and we will punch out the other side in good shape.
Update
I wanted to update you all on how things are progressing at this time for Motorama and how things will start to affect you. As this dreadful virus continues to spread, less and less people are out and about transacting. Customers and businesses understandably are adopting a wait and see approach to spending. This results in a slow down of spending resulting in next to no business and no available work.
As a company we are looking now to match our workforce requirements to our declining customers needs, with our aim to keep as many people employed for as long as we can.
Move from split shifts to a workplace 'Stand Down'
As you are all aware we have been planning a shift arrangement, which has merit if the work and subsequent hours available declines slowly... We have experienced a sharp decline in sales, and a slower decline in service and parts. Next week we will see the schools move to pupil free and closures, which will mean many more people will be acting on our prime ministers direction to stay at home. We are also expecting the prime minister to announce a widespread closure of business which may mean that we will be forced to close. If this occurs we may be forced to close within a shortened time frame. If we are allowed to trade we will look to match the work force with the work available and continue to provide our services.
From Monday we will reassess the situation but most likely announce that we will be placing a number of roles into 'stand down'. This will continue through the weeks ahead until we either close or offer minimal services. There will be some roles that remain on dramatically reduced hours to keep the wheels turning, but essentially the company will be in idle.
What is a 'Stand Down'
A stand down is a temporary hold on your employment, which is outlined under section 524 of the Fair Work Act. I like to think it is like hitting the pause button, however all of your entitlements still accrue for you as normal. This is not a termination of employment it allows us both to hit the play button as soon as we can go back to work and return to business as usual. It is our best interest to return to work as soon as possible as this temporary pause will be costing the company a large amount of money each week that this goes on.
We are preparing a Stand Down 'Care' Pack
As a company we are busy preparing a number of key communication documents to get everyone through this 'stand down' period. We want to ensure everyone gets through this period in as best shape as possible so we can get back to work in good health.
These include:
- Financial "General Advice" Flyer
- Health and Well Being Flyer
- Letter of "stand down" and you will require a payslip for "Centrelink"
- A communications flyer on how we will stay in touch through the stand down
Applying for Government Assistance
We encourage all employees to prepare for applying for Government assistance in the event that you are stood down. To help employees through the initial period of a stand down, Motorama will provide 5 Days Accrued Annual leave, over the next two weeks, for those employees that have 5 days accrued. This is aimed to help support you and your family to transition to government assistance. Please note, eligibility for government assistance is based on your personal circumstances. You may also be eligible to access some of your superannuation early. To get a head start on this please review these websites:
How to register your intention to claim a Centrelink payment
Early access to superannuation
How will I know when to come back to work?
As a management team, we are conducting daily catch up's to stay abreast of this ever changing situation. We are also taking cues from the relevant National and State Authorities, and working closely with AADA (Australian Automotive Dealer Association) to ascertain when we are able to safely conduct business.
What does the future hold
Once we pass through this crisis and punch out the other side we will hit the ground running. We hope to be entering into the busiest part of the year (May to June) with a number of Government Stimulus Packages available for business to purchase. As a management team we are already making plans on how to fire back up in a big way.
Key Summary
Our plan is all about getting through to the other side of this challenge, preserving jobs so we can kick start, fire up and get everyone back to work. A detailed letter out outlining our approach is attached for your reference.
2020 is an exciting year for Motorama as we look to celebrate 60 years. Looking on the positive side we have had 60 years to prepare us for this challenge, we are ready! It will be one hell of a year to remember that is for sure. When we get back to work, the only thing of Coronavirus I want to see is dust in the rearview mirror because we will be focused on the road ahead.
Please take care of your health and the health of your loved ones. All the best....
Mark Woelders
Managing Director