Coronavirus: Businesses face abuse for operating during Covid-19 lockdown

Wednesday, 8 April 2020

Prime Minister Jacinda Ardern outlines the rules on essential appliances during level four.

Small business owners are being bullied and are receiving death threats for selling essential items during the coronavirus lockdown.

Non-essential businesses were forced to close on March 25, but since then the Government had updated its list of essential services and items, allowing major non essential retailers like The Warehouse, Kmart and Farmers to sell online.

But small business owners like Bernadette Gee, who owns confectionery shop Magnolia Kitchen, received death threats and online abuse for operating during the lockdown.

Gee said despite being approved as an essential business by the Government, people trolled her and accused her of 'cheating the system'.

* What's essentially open in Nelson during lockdown?

* Ezibuy continues to sell and ship despite not being an essential service**

According to the Ministry of Business, Innovation and Employment's (MBIE) website essential goods cover products that keep people warm, replace key household appliances and maintain people's health.

'They may include for example blankets, heaters, kitchenware and appliances, whiteware, computer equipment, and mobile phones.'

Magnolia Kitchen owner Bernadette Gee says that remaining open during the lockdown means she can keep her staff, but people believe that she is'cheating the system'.

While she had closed her cafe, Gee had received approval from MBIE to continue manufacturing and online distribution as a supplier to more than 40 retailers including supermarket chain Farro.

'Regardless of if you think my business is essential is not relevant, the people we have elected to be in charge of our country … are the ones who have given my business approval,' Gee said.

'I have a huge responsibility to my staff, and their livelihood. If I'm told we're essential, I'll do my best to keep going. The success of small businesses will have an effect on our economy.

'Business owners are terrified to tell people they are back in operation because of the backlash.'

She said her business was able to ease the pressure on supermarkets faced with suppliers that were struggling to replenish stock fast enough.

Gee said she had applied for the wage subsidy as her revenue had dropped by about 80 per cent over the past two weeks.

Her 10 staff were working on rotation as her 100-square-metre kitchen could only hold two staff at a time while adhering to the Government's personal distance guidelines.

Auckland Chamber of Commerce chief executive Michael Barnett is pushing for more help for businesses from the Government, with rent relief now top of mind.

'We have a different door for our deliveries and a different door for staff to enter from. There's also a separate section for our gluten free production.'

Thirty per cent of Auckland businesses are not confident they will survive the coronavirus pandemic, according to an Auckland Chamber of Commerce survey.

Chamber chief executive Michael Barnett said almost half of the firms it polled were continuing to operate during the lockdown and the same proportion had spoken to their landlord about rent relief.

So far, only 9 per cent of the businesses had laid off staff.

Elle and Riley Cashmere director Elle Pugh said she was forced to delete her Instagram post announcing the business reopening after receiving backlash for being able to sell items deemed essential by MBIE.

'We're still delivering online, we won't back down. But the messages we received were awful,' Pugh said.

'We're not doing anything illegal and we're taking every precaution to stay safe.'

Pugh said the bullying comments were in response to the company's high prices.

Luxury cashmere brand Elle and Riley is selling goods deemed essential by MBIE during lockdown.

Elle and Riley Cashmere's cheapest essential item was a pair of socks priced at $100, while its most expensive essential item was a cashmere robe priced at $760.

'We're not a fashion item. All our products are seven times warmer than wool and lighter, it's an essential winter item for a lot of people. People are confusing what an essential business is with what essential items are,' Pugh said.

The company employed 14 people, all of whom it had been able to keep because of the wage subsidy, she said.

'We're just trying to make sure we can come out of the lockdown and keep our staff employed at the end of the day.

'I don't think people really understand how much it costs to run a business. We have three stores that we're leasing and have all closed.'

Pugh was the only person working during the lockdown, managing orders, customer service and deliveries.

She said the comments had affected her mental health and added pressure to what had already been a stressful couple of weeks.