4-Day Workweek

IN NEWS:

• The world's biggest trial of a four-day working week was a success in the UK as an overwhelming majority of participating companies declared they would continue with the new working model.
• The Karnataka legislature has passed an amendment to the Factories Act of 1948 in its application in the state to allow industries to extend working hours for labour up to 12 hours a day while keeping the maximum weekly work hours at 48.

MORE ON THE TRIAL RUN:

• The campaign aims to shift the norms of work culture from 40-hour, five-day weeks to 32 hour working week with no loss of pay.
• Employees at 61 companies across Britain worked an average of 34 hours across four days between June and December 2022, while earning their existing salary.
• Of those, 56 companies, or 92%, opted to continue like that, 18 of them permanently.
• Following to the successful trial, the organisers have launched a drive to persuade more companies to try the idea.

4 DAY WORK WEEK:

• The current five-day working week, which includes 40-45 hours, is a practice that Henry Ford brought around in the 1920s.
• The five-day week was itself an improvement from the six-day week that was common before the trade union movement emerged in the late 19th century.
• However, in recent years, several factors have contributed to the idea of a 4-day working week:
  • Rising productivity due to technological advancements such as automation
  • Increasing awareness about mental health and human welfare
  • Employers have become more flexible about bringing changes in the workplace, especially after the pandemic when "work from home" became popular.
  • Growing need to reduce carbon footprint
• The public sector in Iceland and companies in Spain, Sweden, Belgium, Japan and New Zealand have tested the impact of a shorter workweek.
• For instance, Microsoft piloted it in Japan for a month in 2019 while consumer goods giant Unilever carried out a year-long trial in New Zealand in 2020.
• The idea of 4-day working week is gradually gaining popularity in India as well, like the recently passed bill by Karnataka Assembly.

MERITS OF 4-DAY WORKWEEK:

WORKERS:

• Better work-life balance:
  • A four-day week gives employees the time to live happier and more fulfilled lives, as it allows time for those non-work parts of life that are often neglected, such as rest and leisure.

• Improved mental and physical health:
  • 4 days of work enables the workers more time to focus on their health and wellbeing, and prevent and address any issues or illnesses.

• Improve motivation:
  • The trials showed that increased time off allowed them to rest and recharge, leading to a more positive attitude toward their jobs, increased motivation and creativity.

EMPLOYERS:

• Higher productivity and profits:
  • During the trials, employees reported feeling less stressed and better able to manage their workloads, while the employers experienced increase productivity and lesser costs.
• Improve talent retention:
  • The share of staff leaving participating companies dropped by 57% over the trial period. This could prove useful for companies who are struggling to recruit and retain workers since the pandemic.
• Address labour shortage:
  • By 2030, 1 in 6 people in the world will be aged 60 years or over. Having a 4-day work week will enable older people to continue working for longer years.

SOCIETY:

• Gender equality:
  • 4-day work week can enable more equitable sharing of paid and unpaid work in families, especially the caring roles traditionally ascribed to women.
• Geriatric care:
  • Having a 4-day work week will enable the younger generation to spend more time with the elderly.  

ENVIRONMENT:

• Reduced carbon footprint:
  • Lesser working days would result in lesser carbon emission due to fall in commuting. Also, there would be lesser carbon emissions related to the processing and storing of data.
  • Also, the shift to a shorter workweek could led to an increase in pro-environmental and low-carbon activities such as hiking and recycling.

CHALLENGES:

• Increase in work load:
  • Lesser working hours could result in employers demanding more from the employees during the four days. This could leave employees with more stressful workdays.
• Affect personal life during workdays:
  • Increased working hours and stress could limit employees' ability to take care of their daily life needs during the four working days.
  • Also, working fewer hours might give women more free time, but will not guarantee equitable distribution of time and work.
• Fear of wage loss:
  • In a country like India where the informal, daily wage employment dominates, adoption of a 4-day workweek could result in loss of remuneration.
• Impact on industry:
  • Not suited for all industries:
    • In India, several sectors such as hospitality, manufacturing, and retails, among others still follow a six-day working (50-55 hours) week. For them, the model would be difficult to implement.
  • Effect on supply chain:
    • 4-day workweek could reduce the affect production and customer service.
    • For instance, a raw material company that has a shorter workweek may cause significant delays at a production company that follows longer weeks.

CONCLUSION:

With rising technology and increasing worker productivity, it is time to debate about moving toward a four-day workweek with no loss of pay. The recent trials show that it possible to replicate the model in sectors like technology, banking, insurance, and e-commerce.

PRACTICE QUESTION:

Q. What are the main socio-economic implications arising out of the implementation of a four-day working week system in India?