Business

Report says small businesses faced the brunt of July heatwaves

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Vendors sell cold drinks near the Lincoln Memorial in Washington, DC, on July 27. AFP/File
Vendors sell cold drinks near the Lincoln Memorial in Washington, DC, on July 27. AFP/File

Record-breaking heatwaves across the United States have taken a toll on small businesses and their workers, according to a recent report. 

In July, dangerous temperatures forced many small businesses to close their doors early, resulting in reduced working hours for employees as consumer behavior shifted due to the scorching heat. 

The extreme heat advisories affected hundreds of millions of Americans, particularly in the South and Southwest regions, where historic highs were recorded. These hazardous conditions led to fewer customers venturing outdoors, leading to financial losses for small businesses.

The report by Homebase, a small business payroll company, revealed that nationally, small business employees worked 0.9% fewer hours during the first two weeks of July compared to the last two weeks of June. However, cities that experienced the worst of the heatwave saw significantly higher reductions, with some employees working up to 5.7% less. For instance, businesses in New Orleans and Memphis faced a challenging situation, with owners shortening business hours to cope with reduced customer traffic and protect their workers from excessive heat exposure.

Danah Lee, an employee at Willie’s Taco Joint in Phoenix, described the impact on both businesses and employees. “Not only is it affecting our business, but it’s affecting my team. Working long hours in this heat is very hard. I’ve had to have more people on my schedule, working shorter shifts to make sure we have no heat exhaustion,” said Lee.

The heatwave crisis has also raised concerns about worker safety, especially in labor-intensive outdoor industries. Some employers have adjusted worker hours to earlier in the day when temperatures are relatively lower, but there is no federal oversight mandating such accommodations in some states. 

Travis Parsons, director of occupational safety and health for the Laborers International Union of North America, expressed concern about workers’ vulnerability to heat-related injuries. “It’s more relevant now than ever. It’s always been an issue in my 20 plus years, but it seems to be really in the spotlight,” said Parsons.

As small businesses struggle to cope with the heatwave’s impact on their operations and workers’ well-being, calls for increased awareness and safety measures are growing. 

The extreme heat poses a significant challenge for both businesses and their employees, making it crucial for authorities and employers to prioritise measures that safeguard worker health during such unprecedented weather conditions.

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