Jamaica Bedding, OJay Koolers layoff more than 100 workers

The decision the company said is necessitated by the fast-spreading coronavirus pandemic which has infected over 400,000 people and claimed the lives of more than 20,000 lives around the globe as at March 25. The global economy is perilously close to falling into a recession as a result, with several businesses, companies and corporations forced to pull down their shutters.

Among the larger medium-sized enterprises operating in the Old Harbour space, the company has followed suit like that of bigger establishments.

“People are not interested in things like mattresses right now,” said Errol Lewin, general manager, Jamaica Bedding. According to Lewin production at its East Street, Old Harbour facility is down to a “minimum”, with 75 percent of its staff “temporarily layoff” or working from home.

Over at sister company – OJay Koolers – the predicament is similar.

“Sixty percent of our business is reliant on approximately 500 schools that we distribute to within Jamaica. Since school closed we lost 60 percent of our business. So we have to layoff,” Lloyd Lewin, younger brother of Errol and general manager of OJay Koolers, told Old Harbour News in an interview Monday.

This, the head of the juice-making company contends, has caused them to send home 30 of its 96 employees on staff. At the same time the younger Lewin said “we examining possible products that the rest of the existing market would demand”. But until then another 30 people within its employ could be out of work until the crisis is over.

“We are monitoring the situation closely as we are not in the business of layoff. But we might be forced to layoff more within a week unless we see other options,” he said via telephone from his South Street, Old Harbour office.

The highly contagious virus has forced governments all over to drastically restrict the movement of people and limit trade by closing borders.

Here in Jamaica, Prime Minister Andrew Holness has issued similar directives like other world leaders, limiting movement to only the bare essentials. All non-essential work must now be done from home, while social gatherings – including funerals, weddings and hair salons have been further restricted from 20 to now 10 people.

While the decision to cut staff is short term, Lloyd added: “Over $20 million in receivables tied up in the schools. Just think about that and the impact it will have on your working capital.”

Should things continue as they are now, a recession is inevitable Errol, who is self-quarantining following a recent overseas trip, reasoned.

As it relates to the government’s management of the crisis, the JB boss said the Holness administration “is doing a fantastic job” and is also willing to support fiscal measures that will stimulate the local economy.

“We need it,” he said. “We have loans with our banks and we not earning right now. So we had to get moratoriums and so on; and we want some loans too. So whatever the government can do to help businesses we welcome that.”