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Employees in Tairawhiti's small-to-medium-sized business network have taken pay cuts to weather the economic storm and help avoid job losses.

With a recession coming, and waves of redundancies predicted to spike unemployment to a double-figure percentage, Gisborne businesses are banding together to show strength in numbers.

Universal Engineering director Phil Matthews said all 40 of his staff had taken a pay reduction in line with government recommendations.

“We are working extremely hard to minimise the risk of any job cuts.”

Mr Matthews said the Covid-19 period was the single most challenging period they ever experienced as business owners.

“To experience a drop of income in March, no income for April and uncertainty moving forward has been very demanding on business owners, employees and the community organisations we support.

“I suspect the biggest challenges are yet to come.”

Mr Matthews said he was hopeful the Government's talk of investment in infrastructure would be channelled into regions.

“Which would kick-start the local economy and have a positive effect right through the construction sector, flowing into the wider Tairawhiti region.”

“Our staff have been fantastic and are showing true resilience during this difficult time.

“During Level 4 we communicated regularly via email, social media and phone calls to all staff to check on their general wellbeing, health and families.

“I am positive about the outcome but everyone is going to be feeling a lot of pain.”

Civil Project Solutions (CPS) owner Russell Moylan said his team had embraced the Government's “we're all in this together” slogan as well.

“Some staff were able to work from home, others were not. But we have all taken a 20 percent pay cut and reduced hours until business returns to normal.

Alert Level 3 means we are able to work at a reduced capacity, either from home, worksites or by having a skeleton staff in the office.”

CPS has 14 Gisborne-based staff.

The community-minded firm decided during Alert Level 3 to buy lunch for the whole team from a different local café every day, with a roster for whose turn it is to select where it comes from.

Weekly amounts are also being donated from their wages, which CPS is matching $2 for every $1 staff donate, and all this money will go toward local charities.

Mr Moylan said he believed these actions would go some way to helping local businesses and local people weather the economic storm.

“It's our way of giving back to the community and we highly encourage other businesses and people who are able, to follow suit.”

During lockdown, the company continued regular Friday team lunches and weekend socialising, and even had a quiz night — all via Skype.

“Staff have been really positive, hard-working and transitioned to working from home really well.

“If we think about the big picture there is still huge underlying uncertainty regarding the economic resilience of Tairawhiti, New Zealand and the world in general.

“We are well aware that there are many other businesses and people in Tairawhiti in less fortunate positions than we are, As such we feel a great sense of duty to support the region in which we live, work and play.”

Sole traders have to face the economic storm alone but Moose Cottage owner Teri Wilkinson said she felt lucky.

As the owner of a fresh flower business, she had a weekly stall at the Farmers' Market. Her income stopped when the markets stopped.

Support 'means heaps'

But at Alert Level 3, customers began to contact Mrs Wilkinson for contactless deliveries. With so many orders she had to cut off Mother's Day deliveries five days before the event.

“I think people needed cheering up.

“The support means heaps to me, and it's not just me but a lot of the local businesses through the Farmers' Market that are getting a lot of support.

“We just miss our customers smiley faces. It's not the same but you've got to do what you've got to do.

“I'm doing what I love and I feel so lucky to have the amazing support from locals.”

The flower business had only just started to pay for itself, so to be able to still process orders during her off-season had kept it going.

“And it is keeping me in touch with my regulars, which is important.”

A Gisborne physiotherapist said the Government's quick response with the wage subsidy helped her sole trader business.

Together with the $10,000 loan offered to every small business owner in New Zealand — interest-free for the first year — it would help her get through until work could start again.

“It made me feel a lot better. They're doing the most awesome job. Those wage subsidies were so quick and easy to get, and before I really had a chance to panic, and the same with this loan.”

For businessman and Gisborne district councillor Larry Foster, BMS (Boutique on Main Street) is the family business so personal savings are being used to pay overheads.

“It has been closed now for over six weeks, so we are feeling the same pain as other retail, hospitality and service businesses. We have had minimal income during Level 4 from online essential sales.

“Thanks to the wage subsidy of 80 percent, this has helped to pay full wages to staff as they have their normal weekly expenses.

“With Level 3 we have been able to trade online and deliver free to our local customers. We certainly appreciate their commitment to shop local and view our online presence through our website, Facebook and Instagram.

“However this is not a substitute to shopping in bricks and mortar and the personal service we enjoy.

“Our CBD has been hit really hard, and hopefully everyone survives.

“Initiatives from the Government and good council planning will be essential. We are looking forward to seeing our customers back at Level 2.”

BDO are also promoting the support of local businesses. The accounting firm organised morning tea from Nina's Kitchen to thank staff for working from home to support clients in trying times.

“They have been fantastic,” said BDO partner Mike Torrie.

“It is also about supporting local business at a time when they need it more than ever.”

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