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Companies step up, provide support to LA fire victims

CWS 3.0 - Contingent Workforce Strategies

Companies step up, provide support to LA fire victims

Katherine Alvarez
| January 14, 2025
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Fire Engine at Night-time Emergency

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Disasters such as fires, floods, hurricanes and earthquakes disrupt not only organizations’ routine daily operations, but — more importantly — the lives and security of their employees, including contingent workers.

Los Angeles and the surrounding areas of Southern California continue to face dry winds, raising wildfire risks through at least Jan. 15 as the region struggles from wildfires that decimated entire neighborhoods, Bloomberg reported. The Palisades and Eaton fires have killed at least 24 people. More than 8 million in the area face critical fire weather in the coming days, and more than 92,000 residents were under evacuation orders as of Monday night.

Organizations Helping Out

In the midst of the tragedy, several enterprises are offering help to their employees and communities:

Starbucks. Starbucks said it will give catastrophe pay to workers affected by the fires raging in Los Angeles, Bloomberg reported.

If a store is open but a barista can’t work because they’ve been displaced from their home, “we are temporarily offering catastrophe pay for any missed shifts while we work to understand their situation,” Starbucks spokesperson Sam Jefferies said in response to an inquiry from Bloomberg News.

Starbucks declined to say when it implemented the measure or for how long baristas can claim catastrophe pay. It also declined to disclose the number of locations it has in the city, but data provider Scrape Hero says there are 140 stores in Los Angeles, according to 2024 data.

“If we close a store, partners are being paid,” Jefferies told Bloomberg. “We’re working with partners who have been displaced to give them the resources they need, too.”

In addition, where it is safe, workers are delivering coffee and serving food to first responders.

Disney. The Walt Disney Co. is supporting vital organizations on the ground including the American Red Cross, the Los Angeles Fire Department Foundation and the Los Angeles Regional Food Bank, among others.

“Additionally, we’ve been working around the clock to ensure the safety and well-being of our employees, many of whom have been impacted by these fires, and we intend to provide further resources to our Employee Relief Fund to help those facing hardship as a result of this crisis,” the company stated in a press release.

The company said it is working closely with the business community to find ways to support important rebuilding efforts in the region and committed $15 million for initial and immediate response and rebuilding efforts.

“As this tragedy continues to unfold, The Walt Disney Co. is committed to supporting our community and our employees as we all work together to recover and rebuild from this unbelievable devastation,” said CEO Bob Iger. “Walt Disney came to Los Angeles with little more than his limitless imagination, and it was here that he chose to make his home, pursue his dreams and create extraordinary storytelling that means so much to so many people around the world. We are proud to provide assistance to this resilient and vibrant community in this moment of need.”

Verizon. Verizon is offering support such as waiving call/text/data usage fees and providing free bottled water, device charging stations and Wi-Fi at some Verizon stores and shelters. It also deployed a Wireless Emergency Communications Center and is providing free Wi-Fi and charging stations for public use at a number of American Red Cross shelters in the community, according to a press release.

In addition, the Verizon Foundation is donating $500,000 to the Los Angeles Fire Department Foundation to supply LAFD firefighters with essential tools and another $500,000 to the American Red Cross to assist with shelters and other disaster relief.

“Our hearts go out to everyone affected by the devastating wildfires in Pacific Palisades, Pasadena and surrounding areas,” Steven Keller, Verizon’s Pacific Market president, said in a press release. “We understand how critical it is to stay connected during emergencies like these, and we are fully committed to supporting these communities, first responders and our customers in every way possible.”

Paramount. New York-based Paramount Global — which owns CBS, MTV, Comedy Central and the Paramount movie studio in Los Angeles — will donate $1 million to organizations including the Los Angeles Fire Department Foundation, California Fire Foundation, World Central Kitchen and Best Friends Animal Society.

“Our hearts are breaking for everyone impacted in Los Angeles and the surrounding areas, including Paramount employees and our friends, partners and peers in the industry,” the company stated in an Instagram post. “As the devastation unfolds, we will continue to provide resources to impacted employees and support for our heroic local news crews who are keeping the public informed.”

Post-Crisis Opportunities  

The Eaton and Palisades fires are expected to rank among the costliest in modern US history. Wells Fargo & Co. and Goldman Sachs Group estimate insured losses could reach as much as $30 billion, according to Bloomberg, considerably higher than a $20 billion forecast last week from JPMorgan Chase & Co.

That said, once the flames subside, Angelenos could provide a qualified and diverse talent pool for organizations to tap into.

“Because of its high ROI and the competitive advantage that it offers, corporate talent leaders should make implementing a ‘post-disaster recruiting strategy’ a standard practice,” Silicon Valley-based HR thought leader John Sullivan wrote in a blog post.

In the case of the LA fire disaster, this strategy enables corporations to tap an “exceptionally large talent pool” that will be created as a result of the economic and other impacts of the fires, according to Sullivan. Many of these candidates have been continually employed with up-to-date skills and wouldn’t typically be looking for new opportunities if it weren’t for the fire-related layoffs and frustration of many residents with the disruptions that the LA fires have caused. Another major benefit cited is the lack of competition from other recruiters.

“Most employers in the LA area will be busy cutting and regrouping rather than adding staff,” Sullivan wrote.

While some may consider this exploitative of LA residents who are down on their luck, he explains that most outsiders quickly change their perspective when they realize how many LA business facilities have been destroyed or disrupted.

“This means most LA employers won’t be able to bring back their released employees until their facilities are rebuilt,” Sullivan wrote. “And to many disrupted LA residents, their best chance for immediate work in a professional job may now be in another state.”