Social-Democratic Denmark Shows How to Respond to Coronavirus
The US and UK responses to coronavirus have failed miserably. But Denmark has moved swiftly to help workers by protecting wages and preventing layoffs — showing yet again, in the midst of a pandemic, that we’d all be better off living in a social democracy.
Denmark’s prime minister, Mette Frederiksen, gives a press statement to comment on the situation concerning the spread of the novel coronavirus, in the prime ministry in Copenhagen, on March 10, 2020. Liselotte Sabroe / Ritzau Scanpix / AFP via Getty
While Britain remains stubbornly open for business (and contagion), Denmark is preparing to deal with the economic fallout from the coronavirus recession.
This Sunday, the Danish government struck a historical deal with trade unions and employers’ associations to stop mass layoffs during the quarantine. During the next three months, the state will cover 75 percent of the wages of workers threatened by job loss, up to $3,300. Companies will cover the remaining 25 percent, while workers will give up five days of paid vacation time — in other words, work five days for free.
The deal covers companies who would have to lay off at least 30 percent of staff, or fifty staff or more. In return, companies commit to not lay off any staff for economic reasons while they’re receiving state compensation.
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