Deliberate Rest

A blog about getting more done by working less

Category: Politics and Policy

Washington Post on the 4-day week in America

Jeff Stein at the Washington Post has a piece about the 4-day week and the lack of interest in it among American progressives and unions:

In Europe, signs abound of interest in continuing to cut working hours. The four-day week has won backing from some of the biggest unions in Ireland and Britain, while plans to dramatically cut working hours have been embraced by large unions in Germany, the Netherlands and France….

But so far, the idea has failed to gain significant attention from the American left or labor movement. Jon Steinman, who worked at the Office of Congressional Ethics, said he is starting an advocacy group in the United States to push a four-day week, although the organization is still in its infancy.

The Democratic Socialists of America and the Justice Democrats, two left-wing groups that have pushed Democrats left, have not backed the idea yet. None of the 2020 Democratic presidential candidates have embraced the idea, despite similarly ambitious proposals for a federal jobs guarantee or a universal basic income.

Planet Money on “Japan’s Worker Shortage” and working hours

Scenes from Tokyo

NPR’s Planet Money has a piece on efforts in Japan to allow people to work less:

Some companies in Japan are going bankrupt because of the country’s critical labor shortage. Officials point to a declining birthrate — which has led to a shortage of workers — and an infamously demanding workplace culture that is discouraging some people from entering the job market at all. This past April, Japan’s legislative body introduced a novel solution to these two problems: a law requiring workers to work less.

[The Japanese government hopes that] a cap on overtime could alter Japan’s work culture, bring new people — particularly women — into the workplace, and solve the country’s labor shortage.

You can listen to the episode below (if my efforts to embed an audio player worked):

Or you can read the transcript.

As I’ve written before, number of Japanese companies have been experimenting with different kinds of 4-day weeks: some big employers like 7-Eleven and Uniqlo offer workers the option of doing four 10-hour days per week, in an effort to give workers longer stretches of unbroken free time. Japanese e-commerce company Zozo is actually the world’s biggest company running on a 30-hour week.

Shortening working hours and unintended consequences:

Koreans have had some of the longest working hours in the developed world: longer than the workaholic United States, Europe, and even Japan (which is often Korea’s benchmark in economic and business matters). While this solid work ethic has been important for the country’s economic growth, it’s had its downsides, and for years advocates have argued that limiting working hours would improve productivity, family life, and quality of life.

Long hours can also enable bad behavior among bosses. As a recent New York Times article explains,

South Koreans often suffer from a work culture they call gapjil. This word describes the imperious sense of entitlement that authority figures feel over their employees, whom they expect to wait on them and cater to their whims.

The most famous example is the “nut rage” incident, in which the daughter of the chairman of Korean Air threw a tantrum over how she was served nuts on a flight.

Recently the government acted to rein in working hours, passing a law that went into effect on July 1 that shortens the maximum workweek from 68 hours to 52 hours. The aim was to boost productivity and expand employment. President Moon Jae-in pointed to studies showing that

labor productivity [would rise] with every percentage point of weekly work hours reduced. During his campaign, he pledged to create 500,000 new jobs by enforcing a 52-hour workweek.

But as this Guardian article explains, the way the government has gone about doing it is having some unfortunate unintended consequences.

For their part, white-collar and office workers

have rejoiced at the new law. Some have long complained of a culture that expected employees to stay late despite a lack of work.

Others say bosses would routinely assign extra tasks outside normal hours, leading many employees to procrastinate all day since they knew they had to stay late regardless of workload.

I’ve heard from junior people at companies like Samsung and LG that “you don’t leave until the boss leaves, and the boss never leaves,” and that the long hours don’t translate into more work, but rather higher rates of presenteeism. When you know you’re going to be at the office until 9 for no particularly good reason, you’re more likely to engage in what Frederick Winslow Taylor referred to as “soldiering.”

But the new regulation intended to combat long hours in Seoul’s steel and glass office towers has backfired for many doing manual or irregular labour, with people flocking to poorly regulated industries and facing pay cuts.

Something like a third of Korean workers labor in jobs with irregular hours, and the new limits– and threats of jail terms for employers who violate them– have led to substantial cuts in pay for these workers.

As a result, lots of them are taking second or even third jobs to make up the loss of wages.

[W]orking-class people have largely mocked the new law for forcing them to take second or third jobs, saying: “Instead of a life with dinner, there’s a new life where you have to skip dinner.”

About 20,000 people have flocked to become on-demand chauffeurs since the new law passed, according to Kim Jong-yong, head of the Korean Association of Relief Drivers.

It’s not clear that if this was something that the government just didn’t anticipate, or what; but it sounds like a real problem is unfolding, and it illustrates how policies meant to shorten working hours and improving the lives of workers need to pay close attention to their effects on both salaried and hourly workers, and not overlook irregular workers.

Companies trying to work with these policies maybe haven’t always thought through the implementation very carefully. Indeed, the head of the German-Korean Chamber of Commerce recently warned that this could hurt exports. Not to put too much faith in national stereotypes, but when you have a German technocrat warning that you’re being too inflexible, you might have a problem.

Less dramatically, perhaps, the new law has also cost restaurants and benefitted grocery stores, as more people are able to go home and cook:

South Korean workers are leaving their offices and factories earlier thanks to a mandated shorter workweek, which seems to be bad news for restaurants and bars….

Supermarkets and online grocers, on the other hand, have benefited from workers spending more time at home. “We do not have exact numbers yet, but sales of fresh foods like fish and meat are rising,” said a Lotte Group executive. Demand has grown now that people are going home earlier than before and making their own dinners.

E-commerce website operator eBay Gmarket reports that for the July 1-9 period, sales of imported meat jumped 88% on the year and kimchi rose 36%. Sales of coupons for restaurants, meanwhile, dropped 25%.

“There has been no change in daytime customers, but a big drop-off at night,” said the 50-year-old owner of a shop that sells food from South Jeolla Province. July sales so far have plunged 20% to 30% on the year. “I am thinking of installing a ticket machine for orders to reduce staff,” he added.

Finland’s basic income experiment ends

Finland has been running a limited experiment with Universal Basic Income, and has decided to pull the plug.

The experiment with so-called universal basic income has captured global attention as a potentially promising way to restore economic security at a time of worry about inequality and automation…. [However the] Finnish government has opted not to continue financing it past this year, a reflection of public discomfort with the idea of dispensing government largess free of requirements that its recipients seek work.

There are UBI experiments going on in other parts of the world, but the fact that Finns are skeptical of the no-strings-attached approach to basic income, that suggests that other countries with less social cohesion and trust in government will find UBI to be a steep climb. Further, as the article notes,

This may be the main reason that basic income has lost momentum in Finland: It is effectively redundant.

Health care is furnished by the state. University education is free. Jobless people draw generous unemployment benefits and have access to some of the most effective training programs on earth.

“In a sense,” said Mr. Hiilamo, the social policy professor, “Finland already has basic income.”

I find the idea of a basic income intriguing, but I’m not really sure what to make of it. My concern isn’t that giving Those People money will just lead them to waste it; the studies I’ve seen suggest that on the whole, people in UBI experiments are more thoughtful stewards of that money than the Rich Kids of Instagram. But the idea that UBI can be used to bribe people into accepting the robot revolution, or that people will trade cash for the dismantling of the state (which is what people like Milton Friedman and Charles Murray have envisioned when they advocate UBI, as I understand it), don’t fill me with confidence that it would be good policy.

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