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Death Of Small Businesses In Iceland I ABICELAND

Death Of Small Businesses In Iceland I ABICELAND

Subject: COVID 19 has closed lot of businesses in Iceland. An article that may intrigue you to consider the difference between the positive and the negative for small businesses in Iceland.

The Fine Margin Between Right and Wrong
The world is moving towards recession and Iceland is not far behind due to COVID 19. Slowly but surely, small changes can be seen in Iceland compared to years before. During summer, the jail was full with prisoners due to an increase in crime, and lots of small robberies have been happening.
People are trying to make money in an unethical way. What may sound right for one individual or community is wrong for others. This fine line between good and bad, right and wrong, has delineated the nation’s culture, economy, customs, and lifestyle over the years. 


I have created an article which may intrigue you to consider the difference between the positive and the negative.

Easy jobs - are they really easy?
In July 2020, the unemployment rate in Iceland was 6.4%, higher than previous years. It can be expected to be close to 20 % at the moment (September 2020) due to the wrath of COVID. With a decrease in the number of people employed, what do you think is happening to the country’s activity rate? If you take a look at Facebook, you will come across several users seeking income in an ambiguous way. Example: People looking to give a haircut at a cheap price in their home. It’s good for an individual but what about the person who opened a shop and pays taxes to the government?  People ready to do just about anything in lieu of money is not the sign of a healthy economy or a thriving state of mind. This could increase even further in the future. The approach is interesting, earns you easy money, but is it worth it? Imagine putting up a similar ad on a social media channel only to be hired by a gang of bank robbers or makers of illegal documents. No matter how much you earn for your criminal acts, the level of unethicality stays the same. 


What happened to the small businesses that employed a multitude of Icelandic citizens? 

Thanks to the Covid-19 onslaught, these businesses have been the first to fall. Those that have managed to stay afloat are in a constant fear of losing everything. A country largely dependent on tourism is now tackling the effects of a pandemic. With businesses running losses, employers have been forced to lay off a large portion of their workforce. 


These employees are now jobless, and with no means to fend for their families, are left to resort to unholy means of earning money.


Black jobs, are they good enough in Iceland?

Black jobs may seem to be profitable at first sight, but will not be so lucrative in the long run. With their unrecorded payment transactions, the employers give you solid cash in hand and you don't even have to pay taxes. But, here too there is a thin line that divides should and should not. If you are not sure what I am talking about, check out the following problems you might face.
# Insurance

Life is really funny. One moment you are all hale and hearty and the next moment you do not know what might befall you. An accident might be waiting for you around the corner and you will probably blindly walk into it. Whatever the situation, are you sure your employer will have you covered? 


With no record anywhere of you working for a certain individual or company, you are all on your own. No employer-sponsored insurance, no benefits, nothing. 

In such cases, the employer is often the first person to scoot. 


If not for yourself, at least think of the people dependent on you. God forbid! If anything happens to you, have you thought about what would happen to them? Therefore, having insurance is very important. 


Even if your employer does not provide you with insurance, you can always opt for one on your own. But for that you have to submit an income proof. And, with a black job, your chances, I must say are quite low.


# Profit at what cost?

You are perhaps of the opinion that black jobs are more high paying when compared to white jobs. Have you considered the time when you will be fired from the job without any notice period, any severance amount? So what type of a profit is this. Without any social security for your present life, your family and for your future, you are back to square one. 


Suppose your poor performance or behavior forces your employer to oust you from the job. You work on your performance or behavior and try to look for a job. 


So what? Iceland, unlike some countries like India, China or the USA, is a pretty small country where the world is really small. No matter how much you work on your skills and mannerisms, potential employers will always find a way to background check and then refuse your entry to the company. Even if you manage to bag a job, chances are you will be cajoled to ask for lower pay than before. 


I still do not understand what you will earn with this irregular payment and the much liked black job. 


No access to unemployment benefits if the job is lost in Iceland

Iceland has always been known for its ill treatment of employees. This aggravates when your job is not accounted for. Having no legal protection, you are in absolutely no position to fight back. What will you complain about? What will you say? The court of law and the legal system runs on proof. 


Even if you gather proof of employment and complain against your employer, it will be you who will finally be implicated in the legal system for trying to evade tax. 


Isn’t it better to at least obtain a contractual job. Trust me, you will get some amount of respect. Along with that comes the protection from unions and more rights. 


Government Earnings

You may not earn much or your income may stop completely. But the government will always find a way to make money. The most recent addition to the list of ways in which the government can earn money is imposing a fine for breaking the traffic laws of the country. Peter, my friend, had to dole out a hefty amount for driving his vehicle at a speed limit 4 km/hr over the city’s 60 km/hr limits. 


But is it always right to blame the government for all the bad things that happen to us? The government is made by us, the common people. We, the commoners, can raise our voice against the atrocities committed by these companies. We can approach the police to file a case when we hear about such activities. The government will then side with us to warn such organizations. If warnings do not work, there is another way out of this. Close the company.


To reiterate, maybe we put all our eggs in one basket. We should look for other industries as well. Iceland has one of the biggest advantages of a big open field. It’s easy to have gaps between people. I hope we figure it out soon. AFRAM ISLAND !!


 


 

Author: (AB Chauhan)
Date: 03/09/2020