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IAG: BA restructuring may cost 12,000 jobs

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IAG: BA restructuring may cost 12,000 jobs

Old 5th May 2020, 19:19
  #341 (permalink)  
 
Join Date: Aug 2002
Location: Europe
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Wednesday 6 May 2020, the session will be available to watch online or BBC Parliament

Witnesses

Wednesday 6 May 2020, the session will be available to watch online

At 9.30am
  • Simon Calder, Senior Travel Editor, The Independent
  • Mark Tanzer, Chief Executive, ABTA (Association of British Travel Agents)
At 10.15am
  • John Holland-Kaye, Chief Executive, Heathrow Airport
  • Debra Bowen-Rees, Deputy Chair of RABA (Regional and Business Airports Group)
  • Karen Dee, Chief Executive, Airport Operators Association
At 11.15am
  • Tim Alderslade, Chief Executive, Airlines UK

Focus of the session

The session will explore:
  • the financial position of airlines and airports;
  • passenger and consumer issues such as refunds and quarantine periods;
  • the protection of workers and passengers;
  • the impact of coronavirus on regional connectivity, and;
  • assess how air travel will work as the restrictions are eased.
Please note that Parliament has stopped all non-essential visitor access to both Houses due to the circumstances around coronavirus. The session, will be available to watch online, and a transcript for both sessions will be published on the website a few days afterwards.
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Old 5th May 2020, 19:25
  #342 (permalink)  
 
Join Date: Oct 2002
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If Mr Walsh refuses to appear in front of a Parliamentary Committee, and will not provide a lieutenant, is he not in contempt of parliament?
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Old 5th May 2020, 20:58
  #343 (permalink)  
 
Join Date: Aug 2002
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From the person behind the petition.

"5 MAY 2020 —

Well, I am honestly blown away by the support this petition has gained over the weekend and I wanted to personally thank every single one of you, from the bottom of my heart. Sometimes in life it is nice just to know you are not alone when the decimation of a workforce is announced in such an underhanded way. It should give us all strength to know our BA family is a large one and best of all, it’s a strong one.

I would also, on behalf of all those facing these tough times, like to extend our thanks from the UK BA family to our European airline cousins who are also facing similar problems, but have taken the time stand by all the BA workers right now. LOVE TO YOU ALL. We know who our friends are, but more importantly, to those that have instigated this attack on the UK WORKFORCE while saving others closer to home, the world is now watching you VERY CLOSELY.

I would also like to say a big hello to BA corporate who I have been reliably informed are actively monitoring this petition (looks like we are doing something right).

So, I have been doing a little bit of research on BA’s figures over the 2019 period this weekend, as well as reading all of the comments from pilots, crew, and almost everyone that has been effected by the BA's latest plans. The very plans that have been sanctioned by IAG to target ONLY THE UNITED KINGDOM workforce. Just to be clear, all information posted here in this petition is in the public domain or has been circulated by the trade union UNITE of which I am a member.

So while I was on my journey of discovery, I came across a very informative article that I felt I had to share with you concerning IAG’s finances that was posted on the London stock exchange, (link attached) that actually shows the healthy turnover and profit for IAG along with some nice cash reserves in savings. In 2019 BA’s profit margin dropped a small amount to 12.9%, while its turnover increased to 13.29 billion pounds. BA’s profit has stayed the same at around 2 billion (I am assuming the margin drop did not happen on day 1) as opposed to 2018 showing a profit of 2.3 billion.

So, I find it odd that we fast forward to May 2020 and BA is, all of a sudden, 550 million in the red. The question I have to ask myself is, how does a company that makes that much money blow over 2 billion in cash while the UK tax payer foots the wage bill? Now, I am no accountant, and yes, we are facing difficult times, but really guys?

The last time I can remember this level of mismanagement of money was during the financial crisis and the UK government stepped in and renationalised a handful of banks. I personally don’t see that as a bad thing for BA and Virgin alike, as these are companies that are profitable and as a UK Tax payer, I can actually see a return on my investment very quickly. Something for Boris to have a good think about. Len if you are reading this right now, you have my vote to bring the airlines under the control of the UK government.

As I looked through some of the BA management statements I did find it very amusing to see the likes of Willie Walsh blaming the pilot’s strike for £130m in lost revenue as well as strikes at Heathrow for 33m while Willie Walsh overlooked the fact that Alex Cruz decided to award himself a pay rise at exactly the same time taking his salary from £830,000 to £1.36M. To which you would be happy to know, Alex was asked to explain himself on breakfast TV (have a look at the metro article link).

While we are looking at executive pay, I found an interesting article from “This Is Money” about Willie Walsh and his none too shabby pay plan. The 2019 annual IAG report showed he had a 5.5% rise, up from £3million in 2018, with an £883,000 bonus and £1.2million in shares. He also stands to get 1.1m shares worth £5.2million under long-term bonus schemes over the next four years, ‘if targets are met’.

This statement, “If targets are met” got me thinking. So, as long as IAG hits all its targets, Willie Walsh will pocket another £5.2 million over the next 4 years. These targets will more than likely be linked to shareholder value. Shareholder value is the value delivered to the equity owners of a corporation due to management's ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the shareholders.

Now, I have no issues with anyone earning money, and my view is the more you make the better, within reason, but these bonuses are what drives the management at BA and almost all businesses. I guarantee you that it is this payment to the Shareholders and the bonuses being paid to Willie Walsh and Alex Cruz this is behind this whole program of redundancies.

Also, while this threat of redundancy is going on and as part of gaining market share, it is in IAG/BA’s interest that Virgin, as an airline, fail. Think about it. If BA could hoover up all those slots for a fraction of the price, they could raise total passenger percentages across the UK increasing that 2 billion profit. Maybe IAG’s refusal to stop the purchase of Air Europa at over a billion euro’s is counting on yet more misery for the UK workforce. If you look at the sums of money here that BA management earn, I am sure they will have some obscene bonuses sitting there waiting for them. If that profit margin increases remember “If targets are met” .

So now we know what drives this corporate enterprise and the BA Millionaires club, let us look at the human cost of margin retention and passenger percentage figures and what it really means to you and I, the BA family.

As I mentioned earlier, I have been watching the crew threads and receiving personal messages via social media. I have to say, I have been moved by all of them, but two posts in particular stood out to me amongst all of them.

One post was from a single mother who had barely been able to get out of bed for 3 days, and only did so to feed her young child. She has not stopped crying and is worrying she will lose everything.

The 2nd post actually made me go weak at the knees and I genuinely could not stop the tears. It was from a member of cabin crew who had worked out he was actually better off dead as his family would then have enough money, with his ‘death in service’ pay, to continue paying the mortgage plus putting food on the table, and was seriously contemplating suicide. This is the reality that my new found family are facing every day, and this is exactly how the BA Millionaires Club want you to feel so you take any deal they offer . This is a group of people who hide behind a pandemic to hatch their plans while taking my money as a tax payer. In the UK,as of writing this update, we have 190,584 cases of Covid-19 confirmand and 28,734 death, on track to be the highest in Europe. Another post that resonated with me was from a pilot sent directly to Alex Cruz. The words that stood out were that this newly proposed zero hour contract is tantamount to MODERN DAY SLAVERY. Remember this despicable treatment has been saved by the IAG group for the UK WORKFORCE only, not the rest of Europe and most defiantly not Spain.

It is easy for panic to set in, remember that’s what BA management want right now. So please stop, breath, and take a step back. If you really look at this with a clear head, we have ALL the unions working together this time, court cases have been filed already in the high court and the biggest union in the UK, Unite, is fighting our corner against the BA Millionaires Club.

For those of you sitting there worried and ready to take the 1st proposal that comes along from BA, please remember this. The BA management team actually have a track record of failure when it comes to taking on my BA family. For those more senior members of the Gatwick fleet who remember when the Dan Air staff were brought on, how did that end up for the BA millionaires? My personal favourite though is the 2010 industrial action when the BA Millionaires Club, headed at the time by Willie Walsh, tried to get all the unions fighting against each other by bringing in our Mixed Fleet family. How did that work out for you then guys? Take strength and pride in the fact that we have strong unions that individually have a high record of success, and this time are all ONE FAMILY together fighting our corner. You can guess which team I am glad to be on. I implore you all do as your unions ask, follow protocol, never act out of anger.

To those that feel that there is nothing else there for you, remember this. Right now, as I speak, our new family spans the globe, our family is over 157,975 strong and is growing by the minute. To the BA Millionaires Club, this time you have every single employee in the UK from the Pilots, Cabin Crew and Ground Staff acting as one. We are not running from you, we are running at you.

To those who feel the darkness closing in and that this world does not need you, I beg you now to please reach out to Crew Care or the Samaritans. You are not alone, you have a family spanning the globe and we are 100’s of thousand strong. Do not wavier, do not loose sight of the goal. We are stronger as One Family, we will not back down and we will not stop or be beaten.

So now we know what we are up against, this is my ‘call to action’ for every UK citizen who has signed this petition. I am begging you to help the BA Family. Time is not on our side, so please can I ask you to do the following.

1) Sign this petition ASAP https://petition.parliament.uk/petitions/303081 so it gets read and debated in parliament.

2) Also, we must write to every elected MP in every party in England, Scotland, Wales and Northern Ireland. This will bring massive amounts of pressure on Parliament to act and also for the BA millionaires club to face up to what they are doing. I have also included an MP finder for your area. This is not a debate on who you voted for, this is another voice by those elected to support us.

3) To Len McCluskey I urge you to ask all the UNITE members to write to all of their MP’s in the UK. If a 100 people send the same letter to the same MP’s, they will have to listen.

Talking of MP’s, for those of you in Sussex, please shake Huw Merriman’s hand for me as he has demanded that the BA Millionaires Club turn up to parliament and explain themselves, apparently they’ve all been too busy up till now.

So, in closing and to my new BA Family. From the son of Spanish immigrants, born in the slums of London and growing up on the Grenfell Estate, I have dealt with bullies all of my life and the only way they win is by fear. I make this promise to you all. I will face these people, not with anger, not with fear, but with a determination that’s born out of necessity, as lives and not bonuses depend on this. Trust me “We have this”

Lastly, I would like to dedicate this petition to Ian Johnson (aka Shirley), one of BA’s longest serving Cabin Service Directors, who sadly became one of the 28,734 victims of Covid-19. If anyone is in contact with his family, please let them know.

Please, all of you from all over the world, be safe in these desperate times and remember you have a very large family that loves you.



Steve

https://petition.parliament.uk/petitions/303081

https://www.theguardian.com/business...taff-redundant

https://metro.co.uk/2019/09/09/ba-ch...ries-10712855/

https://www.thisismoney.co.uk/money/...3-2m-year.html

https://www.londonstockexchange.com/.../14441147.html

https://www.telegraph.co.uk/business...-grilling-mps/

https://news.google.com/covid19/map?...d=%2Fm%2F07ssc

https://members.parliament.uk/

https://www.dailymail.co.uk/news/art...s-Gatwick.html
"
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Old 5th May 2020, 22:10
  #344 (permalink)  
 
Join Date: Aug 2002
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Different petiion

I have just realized that this is a different petition on a different platform, the official Parliament one:

1) Sign this petition ASAP https://petition.parliament.uk/petitions/303081 so it gets read and debated in Parliament
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Old 5th May 2020, 22:12
  #345 (permalink)  
 
Join Date: Jan 2012
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Well done Steve.

Written to my MP and reply received. Friends and family signed the petition too.

There is no reason why we cannot get through this together with sensible actions on both sides. Stick together, you have to admire the actions Lufthansa pilots have take to protect jobs and careers
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Old 5th May 2020, 22:27
  #346 (permalink)  
 
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Originally Posted by guy_incognito View Post
So far even if we assume that the official figures underestimate the real death toll, far less that 0.1% of the UK population has died with (not of) Covid-19. Similar in the USA. The numbers in absolute terms seem big but are actually incredibly small.
It all depends on how willing the remaining 99.9% are to die.
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Old 5th May 2020, 22:48
  #347 (permalink)  
 
Join Date: Apr 2020
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Originally Posted by Airbus Unplugged View Post
If Mr Walsh refuses to appear in front of a Parliamentary Committee, and will not provide a lieutenant, is he not in contempt of parliament?
Nice sounding words. Would you care to find where there actually have any legal - or other - meaning ?
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Old 5th May 2020, 22:50
  #348 (permalink)  
 
Join Date: Feb 2020
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Originally Posted by Airbus Unplugged View Post
If Mr Walsh refuses to appear in front of a Parliamentary Committee, and will not provide a lieutenant, is he not in contempt of parliament?
Not automatically. If WW refuses a formal summons to appear (not what the Committee has issued so far) then the Committee can send a report to the House and the whole House of Parliament then decide on any sanctions that are appropriate. Refusal to attend can be classed as a contempt of Parliament and fines or imprisonment can follow - however Parliament has not used that sanction since 1880!
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Old 5th May 2020, 22:59
  #349 (permalink)  
 
Join Date: Aug 2002
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Willie Walsh & Alex Cruz

Thanks to our friend Steve for reminding us of the following:
"..while Willie Walsh overlooked the fact that Alex Cruz decided to award himself a pay rise at exactly the same time taking his salary from £830,000 to £1.36M"
Plus:
"..about Willie Walsh and his none too shabby pay plan. The 2019 annual IAG report showed he had a 5.5% rise, up from £3million in 2018, with an £883,000 bonus and £1.2million in shares. He also stands to get 1.1m shares worth £5.2million under long-term bonus schemes over the next four years, ‘if targets are met’."

The Committee must investigate the above figures in the present climate, and it will get done: will Willie react like the guy from Google in here?
Simply mercenaries (primarily concerned with making money at the expense of ethics), one of them in this video, one of many & we must wake up:
https://www.theguardian.com/technolo...-deal-grilling


They can behave like this only because we (the public + government) allow them to act freely without any control - we could not sleep at night if we were self assigning those disproportionate figures to ourselves however they sleep very well at night...we all know why, here some definitions of sociopath (for the public to choose):
  • Manipulative and Conning
    They never recognize the rights of others and see their self-serving behaviors as permissible. They appear to be charming, yet are covertly hostile and domineering, seeing their victim as merely an instrument to be used. They may dominate and humiliate their victims.
  • Grandiose Sense of Self
    Feels entitled to certain things as "their right."
  • Pathological Lying
    Has no problem lying coolly and easily and it is almost impossible for them to be truthful on a consistent basis. Can create, and get caught up in, a complex belief about their own powers and abilities. Extremely convincing and even able to pass lie detector tests.
  • Lack of Remorse, Shame or Guilt
    A deep seated rage, which is split off and repressed, is at their core. Does not see others around them as people, but only as targets and opportunities. Instead of friends, they have victims and accomplices who end up as victims. The end always justifies the means and they let nothing stand in their way.
  • Shallow Emotions
    When they show what seems to be warmth, joy, love and compassion it is more feigned than experienced and serves an ulterior motive. Outraged by insignificant matters, yet remaining unmoved and cold by what would upset a normal person. Since they are not genuine, neither are their promises.
  • Callousness/Lack of Empathy
  • Unable to empathize with the pain of their victims, having only contempt for others' feelings of distress and readily taking advantage of them.
  • Irresponsibility/Unreliability
    Not concerned about wrecking others' lives and dreams. Oblivious or indifferent to the devastation they cause. Does not accept blame themselves, but blames others, even for acts they obviously committed.


Last edited by ILS27LEFT; 5th May 2020 at 23:35.
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Old 5th May 2020, 23:00
  #350 (permalink)  
 
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Originally Posted by vlieger View Post
So, even though many people don't like to "talk politics", surely these EDMs prove that this whole thing is very political? Not a single Tory voted for them, so BA employees may want to keep this in mind.

​​​​​​

I no longer have a dog in this fight, how it is run is up to the Staff and Unions, but I would doubt trying to make it political is going to help the campaign - I would suggest it would be more likely to alienate those whose support you need.

As an aside, the local MP whose Constituency Heathrow is actually in also has not signed - and he is Labour. Also with most of the MP's away from Parliament and rather hit and miss IT being used for home working can every MP actually get to sign these EDM's?
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Old 5th May 2020, 23:32
  #351 (permalink)  
 
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Huw Merriman: the Chair of the Transport Committee

Originally Posted by cashash View Post
I no longer have a dog in this fight, how it is run is up to the Staff and Unions, but I would doubt trying to make it political is going to help the campaign - I would suggest it would be more likely to alienate those whose support you need.

As an aside, the local MP whose Constituency Heathrow is actually in also has not signed - and he is Labour. Also with most of the MP's away from Parliament and rather hit and miss IT being used for home working can every MP actually get to sign these EDM's?
The Chair is a British Conservative Party politician
"Talking of MP’s, for those of you in Sussex, please shake Huw Merriman’s hand for me as he has demanded that the BA Millionaires Club turn up to parliament and explain themselves, apparently they’ve all been too busy up till now."

Chair's comments

Chair of the Transport Committee, Huw Merriman MP, said:

“It seems remarkable that British Airways cannot find anyone with sufficient responsibility to join others from the aviation sector for our Select Committee inquiry this Wednesday. With so many questions, this would be an ideal platform for BA to set out its challenges, to reassure and seek Parliamentary support should it need more assistance from the UK authorities.

“In March, BA’s parent, IAG, warned against the UK Government bailing out its competitors and said it would administer ‘self-help’ before seeking support. BA’s UK staff are now facing mass redundancies or working on vastly reduced terms. BA’s passengers are not being given flight refunds they are entitled to.

“In Spain, it would appear that BA’s parent has adopted a different strategy of seeking substantial Government financial support and maintaining its operations and employee numbers.

“It’s vital that BA reassure their staff and passengers that they are not using this epidemic to reduce their UK wage bill and competitors, in order to maximise future profits if and when the market returns.

“Judging by the huge volume of emails which MPs are receiving from concerned staff and passengers, it is more important that we hear from BA and IAG than demonstrate their lack of delegated responsibility. We therefore intend to proceed with a separate session for British Airways and Mr Walsh on Monday 11 May in the event the limited resources in Parliament can accommodate. We look forward to meeting Mr Walsh and hearing his strategy for BA in these challenging times.”
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Old 5th May 2020, 23:58
  #352 (permalink)  
 
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Seems that WW is going to appear on Monday.


Willie Walsh, chief executive of BA's parent firm IAG, told the Transport Select Committee that he could not make it to a hearing on Wednesday because of a board meeting. He will face questions at a special separate session on Monday, May 11.
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Old 6th May 2020, 01:28
  #353 (permalink)  
 
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I really can't imagine that given the circumstances it will be worthy of more than a pag
e or so there, but at least five pages by ILS27 as reproduced here.
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Old 6th May 2020, 10:31
  #354 (permalink)  
 
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Originally Posted by guy_incognito View Post
So far even if we assume that the official figures underestimate the real death toll, far less that 0.1% of the UK population has died with (not of) Covid-19. Similar in the USA. The numbers in absolute terms seem big but are actually incredibly small.
Why people die is a matter for Doctors in attendance or coroners post mortem. Public health is a complex matter best handled by public health professionals.
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Old 6th May 2020, 11:14
  #355 (permalink)  
 
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Originally Posted by midnight cruiser View Post
Public health professionals are only concerned with their own remit - public health/deaths, and care not a jot for the colossal destruction involved in achieving their aims. Therein lies the role for world leaders, but thus far, they are in the thrall to their health advisors, and to their scared electorate.
You hit the nail on the head. If you add the fact the vast majority of our senior politicians in the UK support deep short term cuts in CO2 emissions, this explains why they are sitting on their hands while the air transport industry implodes.
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Old 6th May 2020, 11:23
  #356 (permalink)  
 
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ILS27L.

You're really not helping your own case or those of your BA colleagues on this thread. Please can you stop cut-and-pasting reams of text from other websites?

​​​​​Pretty much everyone on PPRuNe supports BA employees in this situation.
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Old 6th May 2020, 11:43
  #357 (permalink)  
 
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Originally Posted by EastofKoksy View Post
If you add the fact the vast majority of our senior politicians in the UK support deep short term cuts in CO2 emissions,
How could you possibly know this as ‘fact’?
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Old 6th May 2020, 12:11
  #358 (permalink)  
 
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Support from senior politicians or not it is currently written into UK law under the Climate Change Act 2008.
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Old 6th May 2020, 12:16
  #359 (permalink)  
 
Join Date: May 2013
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With few exceptions they voted for this in climate change legislation. If they disagree they have not taken any steps to repeal it.

Last edited by EastofKoksy; 6th May 2020 at 12:26.
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Old 6th May 2020, 12:23
  #360 (permalink)  
 
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Originally Posted by midnight cruiser View Post
Public health professionals are only concerned with their own remit - public health/deaths, and care not a jot for the colossal destruction involved in achieving their aims. Therein lies the role for world leaders, but thus far, they are in the thrall to their health advisors, and to their scared electorate.
yes, because it’s a once in a hundred year world pandemic. People don’t want to get sick and they don’t want their relatives to die. No one wants to fly anywhere and there is no where in the world for them to go. This situation is not going to change until the health crisis is resolved so please move aside for those who actually understand public health.
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