The Coronavirus was detected in the Gaza Strip in late March 2020. The government immediately initiated the protective measures; sometimes partial and other times complete closure of all life aspects depending on the reading of the situation. As a result, multiple sectors were severely influenced, especially the already-collapsing economic sector which has been suffering from the ‘Israeli’ siege for over 13 years and the Palestinian division.

Statistics on Day Laborers

Once the first Coronavirus infection was detected in the Gaza Strip, all institutions were closed (including schools, universities, kindergartens, ministries, wedding halls, gyms, cafes, restaurants, markets, teleportation and factories). Only medical crews and the police remained in their positions.

The closure left a negative impact on a huge group of day laborers (day-to-day workers). According to a report by the Palestinian Centre for Human Rights, 160,000 laborers (95%) who work day-to-day were affected by the closure. They were either discharged from work, or had their day and work hours reduced, and so their wages reduced as well. The average income of a day laborer does not exceed 35 Shekels according to Sami Al-Ajrami, the head of the Palestinian General Federation of Trade Unions. As a result, 70% of the laborers became below the poverty line. The unemployment rate rose to 80%; 63% of which are youth.

Most Affected Laborers

Al-Ajrami told PALM Strategic Centre that the category which was most affected was the female workers at kindergartens. He said, “4,000 workers lost their jobs in the kindergartens and were not compensated for the losses resulting from the closure imposed by the government to prevent the spread of the virus”.

He added, “Workers at the bazaars were equally affected. The moment the closure began and until today, the government banned bazaars from working leaving this category without a source of income”.

Sami Tayih, a seller at a local bazaar, was no longer capable of feeding his family as a result to the closure of the bazaars where crowdedness raises the concerns of possible COVID-19 breakout. Tayih said, “My job was to move around in the bazaars in the different areas of the Gaza Strip. If I do not go to work every day, I will not be able to provide for my family nor pay my debts. I have so far received 4 imprisonment orders for not paying back the money I owe to the merchants from whom I had bought my goods”.

Bilal Sa’d, a vendor, who agreed with Sami and said, “We are committed to all protective measures imposed by the government. We pay the taxes. Why are not the bazaars open like other markets?”.  

Drivers suffer from the same problems. Sami Al-Ajrami said, “Drivers’ work depends on movement in the streets. It depends on people moving from one governorate to another, or across universities, schools or ministries. This movement stopped for 55 days. Even after the measures were reduced, the situation was still bad. The market does not need more than 5,000 (out of 20,000) drivers. Some drivers had to operate in local areas with limited income that does not suffice nor does it pay for vehicle installments or fuel”.

Mohammed Al-Sous commented on this matter, “Our work was reduced to half and so did our income. Time is killing us. The longer the measures are implemented, the worse our financial situation becomes”.

Another driver, Hamza Abu Ruk who is married with two children, cannot buy the required items for his children. He said, “My daily income is not enough to buy my children’s needs. I need to borrow money to buy food. Other times, I seek help from my father who can barely secure the family needs, but there is nothing else I can do at the moment”.

Compensations and Reduced Measures

As the epidemiological curve declined, the government reduced the strict measures allowing partial return to schools, ministries, restaurants, and mosques; and reduced the curfew hours to begin at 8 pm. However, wedding halls, funeral homes, and bazaars remained closed along with complete closure on Fridays and Saturdays.

The Palestinian Centre for Human Rights reviewed the government’s compensations distributed to the people in Gaza and the West Bank, and international institutions’ to some of the affected. The government distributed financial compensations (from 500 to 700 shekels) to thousands of workers one time, and so did the PA in the West Bank. The Red Cross distributed $100 to 10,000 workers 3 times and there was a $100 Qatari grant distributed as well.

Continuation of the Crisis

The government’s reduction of measures against the virus did not heal the collapsing economy. Complaints continued. Shadi Skaik, owner of a shoe-shop and weddings’ supplies, complained from the unprecedented economic depression. The customers stopped buying goods due to the bad economic conditions and partial closure of the areas. He said, “I was already suffering from the economic situation before the virus outbreak as a result to the ‘Israeli’ siege. I could barely get enough income”.

He also said, “The goods I sell are related to weddings too. Weddings have been prevented so I can no longer pay the $10,000 yearly rent”.

Jamal Abu Kmail owns a smart phones shop. He said, “I am in a continuous state of draining. I have never reached a stage like this with my sales reaching 10% only”.

He also added, “The global virus crisis increased the price of goods coming from China, so the costs have become high too. At the same time, the citizens’ purchasing power is very limited. I had to discharge 5 workers and reduce the working hours of the others and cut half of their salaries”.

Suggestions

Sami Al-Ajrami suggested solutions to help overcome this crisis. He said that the most important step was for the government and the PA to give financial compensations to day-to-day workers in the Gaza Strip and the West Bank. Donor countries should offer financial help as well until the crisis is over. The compensations which have so far been offered do not cover the size of damage nor do they cover 4% of what should be given.

He also suggested establishing an emergency fund that depends on contributions from donors, and the governments in the West Bank and the Gaza Strip in order to offer support at times of emergency. He clarified that the laborers are the cornerstone of economy. Efforts must combine together to help overcome this stage with minimum losses.