Layoffs a new reality for many businesses
“My heart goes out to them,” Bob McCafferty said, in talking about his decision to lay off 150 of the 170 people employed by his businesses: North Country Brewing, North Country Canning and the Harmony Inn.
Having fallen under the umbrella of the first round of state coronavirus closures, McCafferty's businesses have been limited to curbside offerings only since March 15.
“This is the first time we have ever had to lay anyone off,” McCafferty said. “Each of our employees were so patient and gracious as we tried daily to make the best decisions … We were watching where and how this thing is spreading ... We had been hoping Butler County was in a bubble, and that it wouldn't come here. But when the governor made his announcement, we appreciated getting clear direction.”
McCafferty was not alone in his decision. A first uptick in employee layoffs poured March 16 following Gov. Tom Wolf's call to close 'nonessential businesses' such as salons and restaurants, said Susan Bowser, of PA CareerLink in Butler County.
“We were very busy with bus drivers, bus monitors and people who work in the hospitality industry since bars and restaurants were closed on Sunday night,” Bowser said.
Hospitality is a significant industry in this county, employing about 10,000 workers in tourism-related activities ranging from campgrounds and agrotourism to museums and breweries.
Mark Gordon, the county's chief of economic development and planning, said officials believe 80 percent of the county's 140 restaurants have reduced employee scheduled days and hours, opted for layoffs or temporary closures.After that first day of upticking applications, Bowsers' office also closed to foot traffic, and she does not have first-hand knowledge of how many people were seeking unemployment benefits. No statistics were immediately available for how many new Butler County-based applications had been filed in March.And a second round of applications followed Wolf's March 19 announcement that all but “life-sustaining” businesses in Pennsylvania must shut down. Even Butler County itself, on March 23, put an undisclosed number of “nonessential county personnel” on unpaid furlough.“I'm so sad to think of where we were a month ago and where we are now,” said Judy Ferree, who was heartbroken to lay off 27 of the Hotel Saxonburg's 32 employees.“Most of our employees are very educated and skilled staff, but there are some who aren't, and they don't have the means to get through this without help,” Ferree said. “When I lay them off, I'm not sure what they will do.”
Workers affected by the ongoing novel coronavirus pandemic are eligible for unemployment insurance benefits as are workers who might have been exposed to COVID-19 at their workplace.According to the state's Department of Labor & Industry, workers will be eligible if their employer closes, goes out of business or reduces their hours, or if the employee has been told not to work, told to quarantine or lives in a county under government mitigation efforts.Workers applying for unemployment can do so online at www.uc.pa.gov. Ferree said unemployment benefits will help her employees, but “that isn't what they make. This is hard on everybody.”Hotel Saxonburg still was offering curbside meals over the weekend, and Ferree said the community was doing its best to support her business.But many of those people supporting the restaurant also were out of work, and the traffic and income just wasn't enough to support full staff, Ferree said.Karin, who asked that her name or employer not be published, was in the first round of layoffs from a home construction business.“I was let go for the foreseeable future. There's not a lot of people who want others in their home right now if they are able to make due to any renovations that prohibit them from living. My husband is in construction also, and now he's home,” she said. “This will impact my life in more ways than one. I'll get though it.”More than worrying about income, Karen said she worries about her son, who is employed at a local grocery store and therefore in regular direct contact with the community.And she worries about her brother, a kidney transplant recipient. “He's isolated at home. I won't even go near him. He's on so many anti-rejection drugs, and he has a heart condition,” she said. “I'm worried.”
Although it is unknown when all business restrictions will expire, McCafferty and Ferree pledged to bring staff back as soon as possible.McCafferty said his management team is using the downtime to serve curbside customers and “get some things redone and fresh” in anticipation of the green light to reopen.“Everyone is doing the best we can for our employees as much as we can,” McCafferty said. “We are trying to look out for their personal health at the same time we are looking out for their financial health. We all have bills. And how to keep that moving, how to do best for everyone, has been painful.”
