To: All Coastal Team Members

Fr: Paul Doyle

Re: COVID Update

Date: April 3, 2020

It was only March 16th that we took our first steps as a company to address and protect against the COVID Pandemic.  It seems like a lot has happened in 17 days.  Today, it is important to give everyone an update on the business and what we are expecting. Before I get into that however, I want to emphasize the importance of staying in contact with Coastal for all the information and help that we are trying to provide. I will say more about that later in this note,  but it is an important point.

COASTAL IMPACT OF COVID: To date we are not aware of any Coastal team member who has been diagnosed with the disease.

GOVERNMENT: Governor Whitmer has executed a “Stay at Home” order for everyone in Michigan. This is currently scheduled to run until April 13th.  Based on the Federal Government’s position that all should be shut down until May, the rate of increase in the metropolitan areas and the fact that adjacent states are extending their initial quarantine periods, it is the collective view of our leadership teams that we expect Michigan to follow suit. We are making plans that assume a May 1 end of quarantine; however, we will be ready if the shutdown ends sooner.

ESSENTIAL BUSINESS: Even with the quarantine in place there are certain businesses that need to continue to operate to “sustain life.” Food services, medical industries, some transportation industries and others fall under these guidelines.  In our cases, both Coastal Container and Coastal Automotive have been deemed “essential.”  More accurately, we have customers who are essential, and our products are required in support of them and they have deemed us essential.  We are expected to perform for these customers, and their business will amount to about 20% of our normal volume. We have had small teams running in both businesses to support this demand.

BUSINESS PLANS AND LAYOFF EXPECTATIONS:  As mentioned, we are making plans to begin ramping up production in May. Between now and then we will be doing only work that supports the customers we have noted.  To be clear, there has been work done to move, prepare, and maintain equipment that is part of our production process and this is also work that is in support of meeting the demands of essential customers. Not knowing how long this will last, we are reevaluating plans daily.

One point we want to make very clear so everyone can make appropriate personal plans. When we do come back, we will not be running full production for a period of time and therefore we will not require all of our team back on April 14th or beginning whatever date the Governor finally decides is appropriate.  When operations resume, we will staff the business consistent with customer demands and cash availability. As more businesses come online we expect that our business will scale up, but we cannot predict how long that will take.

In Michigan, the application for unemployment asks that you identify when you expect to return to work. Many people identified April 14th. If you have not been recalled by this time, call MARVIN and certify that you are still unemployed. Your claim will be extended.

EMPLOYEE SUPPORT:  At this point, no one knows how the economy will rebound and how long it will take to come back to full employment.  This amplifies the importance of the new programs the Federal government has put in place.  Unemployment has been enhanced by $600.00 per week and has been extended to a total of 39 weeks. 

In addition, do your homework on the rebate program available to individuals of up to the following: $1,200 for single filers, $2,400 for married filers, and $500 for dependents. For those who qualify, these checks will be direct deposited or mailed directly to individuals beginning April 9th, starting with the lowest wage earners.  It is possible that the highest wage earners may not receive a check for several months.  If you have filed your taxes electronically, you may receive funds more quickly.

COMMUNICATION: We have heard from several people that “I am laid off, so I am not going to stay in touch with Coastal until I am recalled.”  I understand the emotion and the decision, but I want to encourage everyone to go the other way on this one and work hard to stay close.  I am asking for this for three reasons:

  1. We are doing all we can to monitor the event of the days and assess what they mean for you as a team member.  With that, we are trying hard to get information to you in as timely a fashion as we can: information about recall to work, information about unemployment status, information about health and safety matters. If you are aware of any team member who is not monitoring our communications, I ask you to encourage them to do so. The content we provide will help them make good decisions.
  2. When we shut things down, we did it quickly.  This was necessary to protect the company to the greatest extent possible so that we will have the means to come back strong and return to full employment as quickly as we can.  Because so many people are not working,  a lot of information and expertise is not available to the few people who are being asked to keep things running.  From time to time, there may be a question or two that we would like ask you. These questions will be limited to help that is necessary for operations and customer service.  It would be most helpful if you could take that call and help us through this. Several people have gone above and beyond to continue to help and we appreciate that immensely.
  3. To help keep communications such as this one easily accessible, we have launched a new website (https://coastal.group/coastal-team-updates/) where we will be posting all important messages.  We encourage you to bookmark this and to check it daily.  In addition, we will continue to send out critical information via text message.

Every day the leadership teams meet (virtually) in the morning and the afternoon. The first question that we talk about is the health and status of our team members. I want you to know this because at these times it is easy to feel alone or less connected, but the truth is that we are thinking about the Coastal team quite frequently.  I also know that many leaders are reaching out to connect with team members. And, I hope that continues.  We know this pandemic will pass and we will be back to “normal” before too long. In the meantime, please be safe, respect the direction of the medical experts, and take this time to invest in your circle of friends and family.

Paul