Saturday, August 23, 2008

Four-day work week slowly gaining momentum in North America

Years ago, about the only workplace where one heard the term "four-day work week" was in the public sector. After all, never-ending budgetary squeezes left governments scrambling for non-money incentives to give their workers.

Nowadays, however, more organizations are recognizing the benefits of packing 40 hours of weekly work into a smaller number of days. Whether they are actually doing anything to change their current set-up is still debatable.

"Five or six years ago, [the need for a four-day work week] wasn't really accepted by management," said Wendy Poirier, an employee health and welfare expert in the Calgary office of Towers Perrin, a human resource consultancy firm.

Now, there is an understanding among executives of the importance of these type of programs, she said.

Still, "it's a slow evolution," Poirier said.

Chrysler's move

The latest convert on the road to this particular Damascus was carmaker Chrysler.

In August, the company said it planned to talk to the United Auto Workers, which represents Chrysler assembly workers, about switching some plants to a four-day, 10-hours-per-day schedule.

The move, the company said, would reduce energy costs and give its employees a permanent three-day weekend.

Four-day work week slowly gaining momentum in North America A Chrysler worker at a plant in Sterling Heights, Mich. The carmaker is looking to introduce a four-day work week at some of its plants.(Sarah Welliver/Associated Press)

"I would suspect a majority of employees would probably be in favor of something like this these days," said Chrysler spokesman Ed Saenz in August.

Other corporations in Canada and the United States are taking a similar tact when it comes to shifting the work week.

Cambridge, Ont., engineering firm Babcock & Wilcox Canada Ltd., for instance, has negotiated a four-day work week in its latest employee contract.

Generally, these firms are not talking about people working less, only that they work in four,10-hour stints.

Gas prices play role

One reason for the shift toward a compressed work week is soaring gas prices. Higher fuel prices make it more expensive to commute long distances to work.

Advocates of the condensed work week argue employees are saved the aggravation of commuting and can spend more consecutive time off with their families.

Employers get a happier employee, and they save energy costs because they shut off the lights and machinery for an extra day.

Organizations with or considering a four-day work week LSM Insurance Babcock & Wilcox Canada City of Hamilton Province of Nova Scotia State of Utah

"We have a lot of younger staff members, and they drive an average of 30 miles a day. It was becoming an issue for them," said Kathryn Olive, president of Koroberi Inc., a web-based marketing firm in Chapel Hill, N.C., which introduced a partial 40-hour work week this summer.

"What drove me over the edge is we lost one of our really valuable staff members who got a new job because he couldn't afford the extra price of gas," Olive told Associated Press.

In a May survey of human resources executives by outplacement specialists Challenger, Gray and Christmas, more than half of the 100 U.S. companies surveyed said they are looking at some sort of plan to assist commuting employees.

And fully 23 per cent of those companies already offer a condensed work-week.

One Florida small-business expert estimated that keeping the car in the garage that one extra day saves in the range of $400 US per-year per-person.

For its part, the City of Birmingham, Ala., which also recently introduced a condensed schedule for its employees, estimated the annual cost savings to be in the range of $750,000 US to $1 million.

Happier workers stay put longer

Perhaps more importantly, companies are forced to scramble for skilled employees these days, workers for whom the salary line on a pay cheque might no longer be the most important reason for staying at a job.

A Towers Perrin report said that 65 per cent of respondents cited a proper work-life balance as important in their job.

"A company can't compete just on pay anymore," Poirier said.

A Florida State University survey of 800 full-time workers went even further, with 33 per cent of those employees saying they would quit if they could find a job closer to their home.

A move toward a condensed work week is one way corporations are fighting this kind of sentiment among employees.

"[One] reason employers offer these gas-saving perks is to keep their best and brightest from seeking positions closer to home," said John Challenger, chief executive officer of Challenger, Gray and Christmas, back in May.

Besides environmental benefits, supporters of the shorter work week argue workers are happier under the new regime because they get the Saturday-to-Monday period off with their families.

Chicago-based software maker 37signals introduced a four-day work week in 2005.

"We all love it," said company founder Jason Fried. "The same amount of work gets done, and everyone gets a three-day weekend."

Critics remain

Still, the idea of squeezing the same amount of weekly work into fewer days is not without its naysayers.

For example, most retailers and restaurants cannot realistically close their operations every Friday or Monday and still make even money to remain viable. These firms can schedule their workers to get an extra day off on different days of the week. But, they will lose the benefits from getting three consecutive days off.

Four-day work week slowly gaining momentum in North America Joan Jessome, president of the Nova Scotia Government and General Employees Union, says not all employees will be able to accommodate a four-day work week. (CBC)

In addition, 10-hour days could create havoc with family schedules as most daycares operate on an eight-hour work day.

"It's something that's easier said than done," said Joan Jessome, president of the Nova Scotia Government and General Employees Union, a major public sector union in Nova Scotia.

The provincial government has said it is interested in giving employees a four-day work week.

But, Jessome said, not all workers will be able to rearrange their lives to accommodate the extra two hours in each working day.

"I don't know if everybody's lifestyle can accommodate 10 hours a day versus seven," she said in August.



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