A Reduced Work Week, in Practice

In my last blog, I explored some of the theoretical arguments that are for or against the implementation of a reduced work week. Now, I will examine two countries – France and Germany – where government policy has reduced the average workweek for economic and social reasons.

The number of hours that people work in North America and Europe differ substantially. Over the past few decades, European nations have seen the number of hours worked per week decline steadily. However, the number of hours worked in North America has risen.

Compared the average European, the average American works approximately 400 more hours annually and takes only a fraction of the vacation time. The number of hours that Canadians work has risen significantly as well.

The average amount that people work has much to do with government policy. The European Union has imposed a maximum 48-hour work week for all member countries, excluding the UK. As well, a paid holiday of four to six weeks is standard in many European countries.

Some countries have also implemented a mandatory reduced workweek in order to help boost employment levels and promote work-life balance for employees.

In 1998, France’s Socialist government introduced a mandatory 35-hour work week. This was done in order to reduce high unemployment rates and to promote a healthier work-life balance, particularly for workers with families.

However, the legislation was politically controversial for many reasons and faced some practical challenges. It was strongly opposed by businesses, which made the law difficult to introduce and implement. In addition, the hours of workers were more likely to be irregular and required more intense levels of productivity than with a 40-day work week.

However, employment in France did rise in the years after 1998. While the impact of the reduced workweek on lowering unemployment levels has been disputed by some economists, others have argued that it played a significant role. The government of France estimated that 350,000 new jobs were created in the first five years after the legislation was implemented. Surveys also found that families were able to spend more time together and parents were able to balance work and family life to a greater extent.

After the election of President Nicolas Sarkozy in 2007, the legislation was weakened and businesses now have more autonomy to lengthen the work week. Surprisingly, most businesses have maintained a 35-hour work week, as many people in France have now become accustomed to it.

Many industrial workers in Germany also have a standard 35-hour workweek. In response to the recession the German government recently introduced a compulsory four-day work week for employees of private-sector companies hit hard by the downturn
The government provides financial compensation for workers’ reduced hours so employees do not suffer financially.

The policy also enables companies facing layoffs to retain employees and their jobs while simultaneously reducing costs. In doing so, neither businesses nor workers are negatively impacted financially. Recognizing that the recession may be long-term, in January the German government prolonged the program to eighteen months. The impact of this policy on unemployment levels remains to be seen, but it will hopefully help keep jobs during the current downturn.

Both France and Germany have experimented with reducing the standard work week, while in North America, work hours continue to increase. In my next blog: Is this simply a result of policy, or do culture and social values play a role as well?