The Rise of the Four-Day Work Week?

[jeffrey]

Like many companies, Pella is looking to cut expenses because of the economic downturn. But instead of laying off more workers, the Iowa manufacturer of windows and doors is instituting a four-day workweek for about a third of its 3,900 employees. Chris Simpson, a senior vice-president at the company, acknowledges it's an unconventional move. But Pella believes the economy could turn around faster than most people expect, and it doesn't want to be caught short of experienced workers. "Our contention is, consumer confidence will rebound," says Simpson. "If there's a [government] stimulus package of some kind, we think people are going to respond."

A few employers are following Pella's lead in shortening the workweek. They include steel companies such as AK Steel (AKS), the city of Atlanta, small newspapers, and hospitals. According to the U.S. Bureau of Labor Statistics, the number of employees who normally work full-time but now clock fewer than 35 hours a week because of poor business conditions has climbed 72%, to 2.57 million in November 2008, from 1.49 million in November 2007. "More companies are exploring alternatives to layoffs," says John A. Challenger, chief executive officer of the consulting firm Challenger, Gray & Christmas. "If they can keep people on until the business turns around, the company would be in much better shape to ramp up quickly...

The Rise of the Four-Day Work Week? - BusinessWeek

[Joan.of.the.Arch]

I hope they are not losing legal protections that full time workers sometimes have over part timers and that they are not losing important insurance coverage that is only offered to full timers. And if these places eventually do close down, are those workers going to be ineligible for unemployment payments? The businesses and workers are probably all in a tough spot.

[disneysteve]

It would be nice if people could collect partial unemployment benefits if they were partially unemployed due to cutbacks like this. Right or wrong, lots of people live paycheck to paycheck. Cutting their hours 10 or 15% could make them unable to make ends meet.

[MonkeyMama]

I think it's smart.

My spouse worked in tech when the tech bubble burst. It seemed like everyone we knew faced lay offs. My spouse was the only one I know of who was offered a 4-day work week and some mandatory vacations. Sure beat being out of work for a year!

Granted, it was extra nice, because we moved shortly after. So he was able to come home for 3-day weekends and such. But I am pretty sure he worked a reduced schedule for about 18 months before eventual layoff. He was first to go because of our move and his clear intentions to find a more local job. I don't think he would have been laid off otherwise. Things eventually bounced back a bit. No one else in his small office was laid off, to my recollection.

He collected unemployment for quite a few months after that. He was certainly eligible. They treated all their employees as full-time, with the mandatory time off.

Of course, depends on the situation. We didn't rely on his income at all. But even if we did, like I said, was certainly preferable to a complete layoff.

[mommyof4]

I'm a teacher. I should be so lucky to go to a 4 day week. I don't see that happening soon in education land- kids would have to stay longer during the four-day week, or else the school year would have to be extended much longer, or go year round. Most school systems aren't set up for that yet.

[cptacek]

Originally Posted by mommyof4

I'm a teacher. I should be so lucky to go to a 4 day week. I don't see that happening soon in education land- kids would have to stay longer during the four-day week, or else the school year would have to be extended much longer, or go year round. Most school systems aren't set up for that yet.

And parents would have to get babysitters for the other day when they are working and their kids are out of school. I don't see that happening either.

I am working 4 days now (but 10 hours a day, so it is full time).

[disneysteve]

Originally Posted by cptacek

I am working 4 days now (but 10 hours a day, so it is full time).

A lot of companies started doing this when gas prices skyrocketed. It saved workers money by cutting their commuting costs 20%.

[geojen]

My Dh would love a 4-day work week (he is a machinist). Right now he works second shift, M-F, which means he works every Friday night. We live 4 hours away from family, so that pretty much takes going to family events out of the question.

[Investing First Steps]

Originally Posted by disneysteve

A lot of companies started doing this when gas prices skyrocketed. It saved workers money by cutting their commuting costs 20%.

I used to work a 12 hour "Graveyard Shift" from 7pm to 7am. We'd work 3 night per week for 3 weeks and then 4 nights on the fourth week. Having all those free days was actually really nice, but since the working at night messed up your sleep schedule it kind of evened out. I was jealous of the people with the daytime shift.

[gekkoplus]

I don't understand how it works for you guys when you say 4 days a week or 40 hours a week. I have been full time employed since past 5 years and I never experienced such a concept. I mean even if I work 10 hours for 4 days, I still have to work on 5th day or it will be considered a personal leave. Sometimes I work even over the weekends and nobody asks me about overtime pay (I don't dare ask either).

It works the other way too. If I work only 4 hours one day because of doctor's appointment or something, I am not forced to extend my day in the future - as long as it does not impact my project work.

Sad thing is I have to work during x-mas holidays. Although I am working from home, it sucks that I can't leave the town to visit my family and I have to keep my mind occupied with work related things even during the holidays.

[disneysteve]

gekkoplus, lots of people have jobs with set hours. 40 hours/week is the most common, usually 8/day for 5 days. By shifting to 10/day for 4 days, the same number of hours is worked. It sounds like your job is more task-based than hour-based. That is often the case with salaried workers. You put in as many hours as necessary to get the work done. There is no hard set schedule and there is no overtime pay.

[ThriftoRama]

I wish more businesses would do this. But, it seems most businesses are stuck in old-fashioned mindsets and don't recognize that this sort of thing is an option. Most of the places I have worked still think telecommuting is wild and crazy, or that taking extra time off without pay is the weirdest thing ever.

I once asked for unpaid time off (2 days) so I could go to a funeral, and the HR people didn't even know how to process that. (I was new there and didn't have any accrued time).

[disneysteve]

I sometimes wish I had a job that could be done on a 4-day week or telecommuting but I don't, of course. That said, I do have a lot of flexibility and can adjust my schedule for things like funerals or school functions or religious holidays pretty easily. My partner doesn't mind at all if I close early or come in late or take a day here and there so I can't complain.

[kork13]

Some state governments are actually doing/considering this. I believe I heard that Utah (or was it Nevada? CA?) state offices started doing this back in September or October (around there). Apparently saves a bundle on utility costs. I've heard about some complaints (understandable for hourly-wage workers), but I'm not certain of what exactly they are...