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Economy 16/07/2022 Transition to a four-day work week: illusion or reality?
Transition to a four-day work week: illusion or reality?

Tashkent, Uzbekistan (UzDaily.com) -- Today, one of the most important drivers of the national economy and a condition for the successful compatibility of work and life values is the leisure economy. In the last century, renowned economist John Maynard Keynes predicted that in the future, due to automation, the transition to new technologies and increased productivity, people will work only 15 hours a week.

European countries are the leaders in reducing working hours in the world. According to the OECD, the average working week in European countries is 37 hours. At the same time, the shortest working week is observed in countries such as Norway (33.5), Denmark (32.5) and the Netherlands (29.4). Today, the average work week in the world is 40 hours. However, in the last decade, the introduction of part-time work and flexible working hours for employees has gained popularity in the world. These methods gained the greatest popularity during the coronavirus pandemic.

In turn, countries where the population works much more than the rest of the world include Colombia (47.6 hours per week), Turkey (46.4), Mexico (44.9) and Costa Rica (43.6). As studies show, the modern norm of an eight-hour or more working day harms not only the health of a working person, but also affects his labor productivity. For example, in Japan, where overtime rates are significantly high, workplace deaths have become fairly common. They even coined a term for this - karoshi.

According to the estimates of the World Health Organization, together with the International Labor Organization, in 2016, almost 400 thousand people in the world died from a stroke, 350 thousand from cardiovascular diseases as a result of working 55 or more hours a week; in the period 2000-2016 the number of deaths from cardiovascular diseases caused by long-term work increased by 42%, and from stroke - by 19%.

Ideas to shorten the working day have been discussed and tested in many countries since the beginning of the 21st century. In 2016 in Iceland, the workweek of employees in several companies was 4-5 hours shorter for one year - but productivity remained at the same level. In addition, employees reported greater job satisfaction, fewer sick days, and higher overall well-being.

In 2018, one of the first companies, Perpetual Guardian (New Zealand), conducted an experiment by reducing the number of working days to 4 days, with full pay. This experiment was supervised by scientists from the Auckland University of Technology. The results of the study showed that productivity in the company increased by 20%, the stress level of employees decreased from 45% to 38%, the balance between work and personal life improved from 54% to 78%.

In the municipality of Gothenburg (Sweden) for more than two years, several companies practiced a 6-hour working day, without a reduction in wages. The experiment was successful and created additional jobs for 17 nurses in the city, cutting sick pay and igniting a global debate about work culture. However, applying this approach to the whole municipality proved to be too expensive.

Many experiments of this kind have been carried out to date, but despite the effectiveness, most countries and companies refuse to completely switch to a 4-day work week. The main reason is high costs, as salaries remain at the same level during the transition to the new system.

Russian experts believe that the transition to a four-day work week in Russia could lead to catastrophic consequences. “If wages do not fall at the same time, this means a rise in the cost of labor by 20%, which will lead to absolutely disastrous consequences both in the labor market and in the economy as a whole. It is clear that this will lead to massive ruin, to unemployment.” If wages decrease, this will lead to impoverishment of the population and a sharp drop in living standards and GDP. According to the expert, the initiative to reduce the number of working days per week is a "headache" and "an idea that has nothing to do with reality," said Kapelyushnikov.

IPMI experts analyzed the relationship between average hours worked per year per worker and GDP per hour worked in various countries around the world. The database includes countries that work no more than 32 hours a week and countries that work more than 40 hours (Colombia, Turkey, Mexico).

The results of the correlation analysis showed that there is no correlation between GDP per hour worked and hours worked per employee per week (0.027), i.e. they are not correlated both in countries with 35 working hours per week or less, and in countries with 40 or more working hours per week.

Thus, the length of the working week does not have a significant impact on labor productivity. In turn, the increase in productivity depends on a combination of many other factors (the quality of the work performed, the qualifications of the staff, the psychological state of the employees, etc.).

While many countries around the world are trying and experimenting with a shorter work week in effective ways, the people of Uzbekistan are working above the norm. This situation requires addressing issues of legislative consolidation of guarantees of citizens’ rights to rest and leisure, including social rights to effectively limit the working day and paid leave. Thus, the introduction of appropriate amendments to Article 38 of the Constitution of the Republic of Uzbekistan will become the basis of the rights of society to favorable working conditions and the restoration of working capacity.

And what will happen if Uzbeks, like residents of European countries, work 4 days a week?

What could be the consequences of Uzbekistan’s transition to a 4-day work week, similar to European practice? Consider this issue from a scientific point of view. To do this, first of all, we will analyze how the reduction of the working week can affect labor productivity.

To analyze the impact of a 4-day working week on labor productivity in Uzbekistan, IPMI experts calculated labor productivity in the whole country and labor productivity per hour worked.

According to the results of the correlation analysis, it was revealed that there is a relationship between labor productivity and hours worked - the correlation coefficient was - 0.40. Thus, the world practice of switching to a 4-day working week in the conditions of Uzbekistan is not appropriate for all sectors of the economy. According to the results of calculations, the correlation coefficient between hours worked and labor productivity in industry was - 0.45, which confirms the high relationship. The main reason for this, we believe, is the lack of full automation of production.

Nevertheless, IPMI experts tried to identify industries where a 4-day work week can be applied. These are areas of non-material production, such as, for example, the IT sector, banks, education, healthcare, as well as the research field. At the same time, it should be borne in mind that most employees in the IT sector have a more flexible work schedule, and the transition of banks to a 4-day work week may slow down financial transactions.

According to the legislation of the Republic of Uzbekistan, medical workers and teachers whose work is associated with increased emotional, mental, and nervous tension are set to work no more than 36 hours a week (Article 118 of the Labor Code). However, according to the results of the correlation analysis, it was found that between the hours worked per year and labor productivity in the field of education (correlation coefficient -0.15), healthcare (-0.21), IT-sphere (-0.09), scientific activity (-0.07) and banking (-0.06) there is no high correlation, which indicates a possible reduction in working hours in these areas.

The results of the analysis show that the duration of work per year is not the only and not the key factor affecting labor productivity, however, their interdependence is confirmed and is not in doubt. In the context of the pandemic, the forced transfer by many companies of their employees to remote work has shown the effectiveness of this type of employment and has become a prerequisite for the use of various forms of employment around the world.

The above calculations show that in terms of a further qualitative increase in the efficiency of labor productivity and the combination of work and leisure by employees, there are reasonable prerequisites for reducing the length of the working week. This can be done in several ways:

- transition to a four-day work week;

- providing employees with an additional "floating" day off;

- Reduction of working hours.

The transition to a more flexible work schedule and a shorter work week contribute to the formation of a number of benefits, which, in turn, will undoubtedly affect the overall work efficiency and improve the socio-economic environment:

First, the health of workers will improve: the freed up additional non-working day allows employees to properly relax and recharge their batteries for work.

Secondly, an effective fight against unemployment will be ensured by increasing the economic activity of the population in the labor market, in particular women.

Thirdly, the motivation of employees will increase, their concentration on the prompt and high-quality performance of important tasks, and the loss of working time will be reduced.

Fourthly, the reduction of working hours will have a positive impact on the reduction of environmental and transport loads, reducing fuel and energy consumption.

Fifth, the entertainment and cultural industries will receive an additional impetus.

Sixth, the quality of life of the population will improve. There will be more opportunities for spending time with family, engaging in hobbies and hobbies, for cultural development, sports and self-education of the population.

In general, having studied foreign practice, as well as based on the results of calculations, IPMI experts consider it possible to use a 4-day working week in the conditions of Uzbekistan for certain types of activities.

M.Ahmedova, 

Head of IPMI Group

 

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