The 80% solution

[phantom power]

At the beginning of the 1980s, there was a sharp worldwide downturn, and Western Europe was hard hit. The Netherlands took an especially pro-active stance, opting for stable real wages and declining hours of work in order to get people back to work. New government employees were hired at 80% of a full-time schedule. Many got a four-day workweek, which was well-suited to a small country where quite a few young people commuted by train to their places of employment. The 80% schedule caught on, and by the time I arrived in the Netherlands in 1995 as a Professor at Tilburg University, the nation was heavily invested in 80% schedules. Public sector workers were joined by academics. It was possible to be not only an 80% time faculty member, but also a 60%, 40%, or even a 20%, i.e., a one day a week professor. And in what is likely to be most surprising to American readers, the whole banking industry had gone to 80% schedules and a four-day workweek. People weren’t filling up their garages with consumer goods, but they did have loads of time. By 2000, the country passed the Working Hours Adjustment Act that gave every employee the right to reduce their hours, without losing their job, hourly pay rate, health insurance or benefits. (Benefits are pro-rated).

Dutch hours stood at 1367 in 2009 (2010 not yet available) in comparison to the US, where hours are 364 higher. (That’s about 9 weeks more work here than in the Netherlands). Dutch productivity per hour has been considerably higher than in the US, although right now (2010) it is at rough parity, because they haven’t laid many people off since the 2008 downturn, in comparison to the US, which has had massive employment losses. In the Netherlands, part-time work is the new full-time. Three quarters of Dutch women workers are on PT schedules. Twenty-three percent of men are also on PT schedules, with an additional 9% on a compressed 4-day workweek. What began as an extreme gender imbalance is being eroded as men have also begun to prefer shorter hours of work. Life satisfaction, the well-being of children, and a variety of other quality of life measures are far higher there than in the US. Worktime is a big part of why.

If the US started down the 80% solution road it would make a huge dent in unemployment. Employers could hire 5 people for every 4 jobs that are available. It’s a shorter worktime policy that doesn’t require cutting the hours and pay of people who have jobs. Instead, new people come on at 80% pay and work only 4 days. It’s especially feasible for younger workers who are getting salaries for the first time and for many of whom shorter hours are appealing.

http://www.energybulletin.net/stories/2011-01-10/80-solution

[Autumn Colors]

1. And have to pay for health insurance for 2 instead of for 1 ??

That would never work here because of that. It works in European countries because health care isn't tied to the job/employer.

WE NEED SINGLE-PAYER UNIVERSAL HEALTHCARE HERE.

Only after that would this work. The retirement age to qualify for full benefits should also be lowered, not raised.

[lumberjack_jeff]

2. Preach it.

Labor is cheap because it's plentiful. A 32 hour work week with overtime paid at 2x makes labor scarce.

[WhiteTara]

3. More weekend Less week!

I have been advocating that for many years (at least for myself personally.) Less is truly more.

[pscot]

4. This is backwards

The approved method is to lay off 20% of the work force, cut the pay of the remainder by 20% and work them 20% longer. Then, if you need more help, hire a temp at minimum wage.

[eridani]

5. Lavorare meno! Lavorare tutti! n/t