betterTIMES The Quarterly Newsletter of 32 HOURS: Action for Full Employment and the Shorter Work Time Network of Canada
Issue No. 7 June 1998
In this issue: - Danes Fight for the Right to Relax - Shorter Hours & Eco-Taxes - Flex-work and the Struggle to Juggle - Rewarding Skill & Service with Free Time - What Americans Really, Really Want - AND LOTS MORE! ------------------------------------------ I. CAN SHORTER WORK TIME HELP SAVE TORONTO'S PUBLIC WORKFORCE? Can voluntary and negotiated options for reducing work time help save municipal jobs? Answering that question should be a top priority of the new City of Toronto. The City and its employees are facing some tough choices, with over 2500 jobs on the line. The City has been put into this situation by the Harris government, which forced an unpopular amalgamation on Metro Toronto's six municipalities and then dumped a series of new costs on the fledgling entity. The provincial Tories deserve the blame for the financial and political mess faced by the City. Unfortunately, the citizens of Toronto have to come up with ways to minimize the damage, and to do so quickly. To make ends meet in the post- amalgamation and downloading chaos, the new City is aiming to cut its payroll costs by $120 million over two years -- a 5% cut to the existing $2.4 billion payroll. There is a plan to cut 1278 positions in 1998, for "savings" of $45 million. Another 1250 jobs are on the line in 1999 for an additional $75 million reduction. But these so-called savings will be entirely negated in the first year by severance payments, while the budget for the second year gives no estimate for how many millions will be poured down a hole in the form of severance costs. Fortunately, the City also has before it a set of recommendations that could help get it out of this jam, and possibly even turn it into a blessing in disguise. Last year, the Task Force on Health and Work of the old city of Toronto made a number of progressive recommendations with respect to work time, including: - "that employers and labour explore and/or expand innovative work time arrangements that optimize health, including a reduction in standard work time, flexible hours of work, job- sharing, phased-in retirement, education and family leave." - a call for the new city to "model leadership in enlightened government and healthy work . . . by supporting innovative approaches to work that improve productivity and enhance employment opportunities, including flex time, phased-in retirement and all forms of leave, as well as investigating the feasibility of a four-day work week." This report was approved by the old council and forwarded to the new government. It is now being reviewed by the City's Chief Administrative Officer, Commissioner of Human Resources, and Medical Officer of Health. Would the recommendations allow sufficient savings to be found? U of T Economist Frank Reid estimates that, if guaranteed the choice of a range of voluntary options for reducing their work hours with a proportionate cut in pay, Canadians would reduce their hours by a total of 6%. A 5% reduction of payroll costs is thus well within range of what could be achieved simply by giving City workers more choice to work less. Sweeten the pot for those who choose shorter hours by topping up their pay with the funds that would have been wasted on severance payments, and even larger numbers will opt for shorter work time. And if City management and labour focus in the years ahead on rewarding employees, especially those at higher income levels, with shorter work time with no loss in pay rather than wage increases, additional funds could be found to preserve and even create jobs. To avoid the enormous human and economic costs of layoffs, and to maintain access to the skills of public servants and the public programs they make possible, 32 HOURS calls on the City and its employees to act now on these recommendations. ****URGENT**** Toronto readers, let your councillor know you support the recommendations of the Task Force on Health and Work to as an alternative to the devastation of planned municipal layoffs. (Contact our office for addresses and phone numbers.) II. INTERNATIONAL NEWS * Danes Strike En Masse for 6th Week Vacation Denmark was rocked by nation-wide strikes and lockouts from April 27 to May 7 over workers' demands for a sixth week paid vacation. The strike cost the Danish economy an estimated $200 million per day. It also affected firms elsewhere, like Swedish auto-maker SAAB which closed factories due to lack of parts. There were positive effects, too. With fuel in short supply, bikes were suddenly more numerous on the road than cars. The social democratic government eventually legislated an end to the dispute. Each worker will be granted two more days off per year, while those with children under 14 years of age will gain an additional two days this year and one next year. At the same time, employer pension contributions were scaled back and a new sick leave levy withdrawn. The government's move left many workers bitter, since they felt their full demands could have been won if the strike had lasted another week. The Economist writes, "Happy must be a country whose trade unions stage a close-to-general strike to demand a sixth week, no less, of paid vacation." But if you're tempted to think Danes are just spoiled, think again. This conflict is best seen as a struggle by labour to fairly share in a booming economy, and as an enlightened choice of time over money as the way to take that share. According to Kete Persson, a 24 year old lab assistant, Everyone is talking about the good economic results in Denmark. As for me, I want my share in the form of free time. KAD, the federation of female labourers, was on the cutting edge of demands for more free time. This century old, all-female union has 100,000 members. While the strikers called for an additional week vacation, KAD actually wanted 20 days more. KAD is also fighting for more continual education, aiming to have 10% of workers in training at any one time. For us, it s the absolute priority, says KAD member Kirsten Moller about the demand for time. Lene Christensen, a 50 year-old maintenance employee at SAS airlines, says the reason both male and female strikers finally rallied behind the demand for more free time is because Danish men participate a lot more in family life than in elsewhere in the world. Free time is seen in Denmark more as a question of family policy than an aspect of employment policy, says Kare F.V. Petersen, a labour market researcher, who compares the situation with that in France. The risk of unemployment is lower here, there is money, the question is having time to spend with the family. Denmark's highly progressive tax system also contributed to making time a more attractive choice than money. According to Persson, I m satisfied with my salary. We have enough to live on without problem. And if I got more money, that would mean paying more taxes." This was the first big strike in Denmark in 13 years, a product of its recent economic success. Unemployment fell to 7% in March compared to 8.3% last year. Meanwhile inflation is around 2%, and both the budget and balance of payments are in surplus. And this has been achieved without dismantling Denmark's comprehensive welfare state or cutting taxes. While many of us have felt that the demand for shorter work time would be driven mainly by concern over high unemployment, the Danish example suggests that perhaps people are more likely to fight for the things they really want -- like enough time with one's family -- when unemployment falls and there is a greater sense of economic security. With Canada's job situation getting marginally better, time will tell if the same effect is felt here. Sources: The Economist (May 9, 1998); The Financial Times (May 8, 1998); Libiration (May 8, 1998); Le Monde (May 6, 1998); Internet sources. * Most Americans Want Less Work A new study shows a sharp rise in the number of U.S. workers who would like to reduce their hours. The National Study of the Changing Workplace conducted by the New-York based Families and Work Institute found that nearly 2/3 of workers would reduce their time on the job, by an average of 11 hours a week -- an increase from 47% in 1992. The main obstacles cited to reducing hours were the need for money, pressure from employers, and desire to help their companies succeed. The landmark five-year study found that growing demands on the job are creating problems at home for time-starved employees, who then end up feeling too stressed to work effectively. It also found that productivity is far more likely to be hurt these days by job-related stress than by family problems stemming from child or elder care. Meanwhile, pay and benefits are far less important in keeping workers happy than the quality of work and supportiveness of a company. (Families and Work Institute (212) 465-2044) Sources: Globe & Mail (Apr. 16, 1998); Toronto Star (Apr. 27, 1998) * French 35-Hour Law Gets Final Approval France's 35-hour legislation received final approval in the National Assembly on May 19, ending a record parliamentary marathon. Attention now turns to the workplace level, where negotiations to work out the details of a shorter week have already begun. The unions are furiously preparing for an unprecedented number of workplace agreements expected this year.. They continue to have some concerns about employer demands for wage moderation and flexible work organization in return for shorter hours. Nevertheless, they are rallying behind this opportunity to reinvigorate the union movement and achieve "a great social advance." The employers federation remains hostile to the project, although it has softened its stance and resumed dialogue with the government. But at ground level, many firms did not wait for the final vote to begin negotiations. According to the daily Libiration, "Collectively, employers are against the 35-hour week. Individually, they watch, negotiate, anticipate." The experience of the 1996 Robien law, which provided financial incentives for shorter hours and new hiring, allowed many employers to overcome their apprehension. After testing the Robien law in three factories, the Bollori group now plans to extend the 35- hour week to all 10,000 of its employees in the transport, tobacco and energy sectors. Bollori's human resources director says, "We're for a 35-hour week if it does not penalize the firm. It can be an opportunity to reorganize and to modernize." Meanwhile, the government is helping smaller firms with consulting services to help make this major reorganization of work a win-win success. One attraction for business is the significant payroll tax reductions if they reduce hours and hire more workers. The incentives are even greater if firms act before the 35- hour week becomes law in the year 2000. The government has allocated 3 billion francs (C$ 750 million) for these incentives in 1998, and 7 billion (C$ 1.75 billion) for 1999. It's hard to know if that will be enough. But the government is not particularly worried if the demand is greater, since that will mean more jobs created, new tax revenues and lower social spending. Sources: Libiration (April 29, May 6, 19, 21, 1998); Financial Times (May 20, 1998); Economist (April 4, 1998) * Italy Reveals 35-Hour Details On March 24, the Italian government introduced its long-awaited 35-hour work week bill. A close look shows it is less a case of legislation than a package of incentives and disincentives. The main points: - a reduction of the "normal" work week to 35 hours by January 1, 2001 for all firms with more than 15 employees; - financial incentives -- in the form of lower payroll taxes -- for firms that reduce hours, with additional incentives for those that create jobs or avoid layoffs (800 billion lire -- C$670 million -- is budgeted in 1998); - firms can maintain an "ordinary" work week up to 40 hours, but they will have to pay higher payroll taxes on hours above 35; - only hours above 40 will be considered overtime, with 250 overtime hours allowed annually per worker; - the incentives for shorter hours will be offered to all firms, regardless of size, starting this year; - the disincentives for long hours will only apply to firms above 15 employees after 2001; by November, 2000, the effect of the "experimental" incentives measures will be evaluated, and possible revisions to the plan made. What all this means is that 35 hours will not actually be a legally binding requirement. It will simply serve as a reference point for applying incentives and disincentives. And the law leaves the key issue of salary levels up to negotiations between employers and employees. Confindustria, the employers federation, is extremely hostile to the law, calling it a "curse." If the law passes, it promises to seek a national referendum to abrogate it. On the other side of things, the Communist leader Fausto Bertinotti, who threatened to bring down the government if it did not legislate a 35-hour week without loss in pay, appears satisfied. Ironically, it often seems that neither business nor the far left are discussing the actual contents of this rather mild, flexible, experimental and still evolving law. The government has gone to great lengths to find ways to avoid compromising business competitiveness and to leave a major role for collective bargaining. The Minister of Industry, Pierlugi Bersani, recognizes that the measure has generated a "psychological" reaction from firms, but hopes that business pragmatism will prevail. There continues to be an unusual alliance between business and labour on the issue. The unions remain, for the most part, concerned that the law will undermine their "social dialogue" with business. However, a hard left minority in the unions wants the law to specify that there will be no loss in pay. The government says it would like a vote on the bill before the end of the year, but no specific date is set. In the meantime, most unions are already integrating the 35-hour week into their plans for collective bargaining. That may ultimately be as important as the law itself. Sources: Libiration (May 19, 1998); Corriere della Sera (March 22, 25, 27, 28, 1998); America Oggi (March 29, 1998); www.cgil.it * Shorter Hours & Eco-Taxes A Potent Green Job Plan Jobs versus environment? Not according to the Central Planning Bureau of the Netherlands. The Bureau recently reviewed the economic viability of the campaign promises of all political parties, providing voters with an objective assessment before going to the polls. According to the Economist (May 9, 1998), the proposals of the Green Left party would lead to the biggest drop in unemployment, mainly by shortening the work week and using taxes on pollution and profits to finance more public-sector jobs." The poorest employment performance would come with implementation of the conservative Christian Democrat platform. The goal of reviewing campaign promises is to weed out manifestos that rely on fantasy financing. It seems to have helped the Green Left, which went from 5 to 11 seats in the May 6 election. The vote returned to power the "purple coalition" led by Labour Party leader Wim Kok, and supported by the centre-right VVD. * Berkeley Group Nears Target The 35-hour work week initiative in Berkeley, California is close to clearing an important hurdle. Work time activist Mike Delacour reports that with the signature drive nearing a close, there is a good chance enough names will be gathered to put the 35-hour week on this fall's local ballot. If so, voters will be asked if they favour requiring all private firms in the city to provide a 35-hour week with no loss in pay, pay double time for overtime above 35 hours, and make all overtime voluntary. Time will tell if this initiative can match the success of another Bay Area effort to improve labour standards. In March, city council in Oakland passed a law requiring companies doing business with the city to pay their workers a living wage (US $8 per hour, plus benefits). 32 HOURS wishes best of luck to Mike, Gina, Roger, Marion and friends as they continue their efforts. Their initiative is an important step in putting work time reduction back on the agenda in the United States, a country which was at the forefront of the international movement for shorter hours earlier this century. (Share the Work, Box 5832, Berkeley CA 94705. Email: gmsasso@sj.bigger.net) III. CANADIAN NEWS * Quibicois Support Shorter Hours to Help Youth An overwhelming majority of Quibicois is prepared to reduce work hours if it creates jobs for young people, according to a recent poll. To increase youth access to jobs, 41.7% of Quibicois would accept a reduction of their salary (37.6% opposed); 71.6% would be ready to retire at 55 years of age (13% opposed), 64.5% would participate in a work-sharing program (18.2% opposed), and 66.5% would give up overtime hours (17.2% opposed). Inter-generational solidarity was also illustrated by the 59.6% opposition to unions signing collective agreements that impose poorer wage and working conditions on young workers, a growing practice in Quebec. The study holds an important message: when reduced work time can be clearly linked to job creation, especially for young people, support is substantial. Recent studies by Statistics Canada, which suggested there was little interest in reduced work time, failed to make this link, asking only whether workers would give up pay to have more free time. Source: Le Devoir (March 27, 1998). * Study Finds Flex-Work Helps With "Struggle to Juggle" A survey of 1700 employees at Royal Bank Financial Group has found high levels of satisfaction with flexible work arrangements among both employees and managers. The results challenge the impression that flex-work reduces productivity, is not supported by managers, and keeps employees from getting promotions The study, conducted for the bank by Canadian Work/Family Directions, found that managers have become big believers in flexible work arrangements after seeing first hand how they help employees juggle work, family and life responsibilities. And employees report that job-sharing arrangements and working from home allow them to gain more control over their lives -- without hurting their careers. Among the findings: - 94% of flex work users are very satisfied with their new arrangements, up 16% from 1994 - 70% of flex users report lower levels of stress - 78% of flex users say opportunities for advancement are the same or better than working a traditional week (up 18% from 1994) - 63% of managers would highly recommend flexible work arrangements (up 29% from 1994) - 37% of managers report an increase in employee efficiency (up 12%) - 36% of flex users say they would leave the company if flex-work were not available An estimated 30% of Royal Bank employees -- more than 13,000 people -- use flexible work arrangements. These options include: job-sharing, "flexiplace" (working outside the office or from home), "flextime" (flexible start and finish times), compressed work week, and variable hours (working less than 37 hours per week). The bank, which introduced a broad-ranging flex-work initiative in 1990, has over 1100 job-sharing arrangements. (Jason Robart, Canadian Work/Family Directions, (416) 492-3475 x235.) * "Five Days Costs More" Say Vancouver Workers Workers at Vancouver City Hall -- members of CUPE local 15 and IBEW local 213 -- have expressed strong opposition to a City Manager's recommendation that the city end its compressed work week and nine-day fortnight schedules. Over 300 staff members joined a May 12 lunch-time rally on the steps of City Hall to save the compressed work week. In his April 23 report to council, City Manager Ken Dobell recommended an end to alternative work schedules in place at City Hall since 1976. The reason given for reverting to a five-day week was to provide better customer service to the public. The report singled out the business community as a source of complaints about the four-day week. The compressed work week and nine-day fortnight were evaluated positively by consultants in 1977 and 1984. The City Manager's report contained no new information or analysis. At a May 14 City Council committee meeting, called to consider the Manager's report, union reps presented a petition signed by most City staff members calling on Council to throw out the recommendation. Non-unionized departmental management and professional staff joined the union members in decisively rejecting -- by 85% -- the move to a five day week. Elaborating on the theme "five days costs everyone more", delegations to the May 14 council committee meeting pointed out that reverting to a five-day week would disrupt child care arrangements, put more cars on the road during peak rush hour, impair worker morale and productivity, make recruitment and retention of key staff more difficult, cost individual employees thousands of dollars in work-related expenses and ultimately lead to higher taxes. After hearing yet more delegations at a May 25 meeting, the Council committee postponed discussion and decision to an unspecified future date. -- Report from Tom Walker, Vancouver Chapter * Ontario NDP Commits to Shorter Work Time The Ontario New Democratic Party has made work time reduction one of its top policy priorities. At its May 22-24 convention in Hamilton, delegates committed the party, should it return to power, to "develop a comprehensive, quality-of-life approach to work time reduction based on voluntary, negotiated agreements." The NDP would: - provide incentives to encourage workers and employers to create more jobs by negotiating voluntary, reduced work hours -- without loss of income. - gradually reduce standard work week hours and improve personal leave options and annual vacation time for all employees. - make all overtime above 40 hours per week voluntary and eliminate the cap on payroll taxes that encourages overuse by employers of overtime. - introduce measures to limit excessive overtime above the negotiated or legislated standard work week. These work time recommendations were number one on the list of policy commitments related to the "Future of Work." Other proposals related to work hours included: - a Workers' Bill of Rights to improve enforcement and awareness of workplace standards. - creating better conditions for part-time, contract, casual and self-employed workers through initiatives such as pro-rated pensions and benefits; more control over scheduling; and security measures for the self-employed. - making the minimum wage a living wage by tying it to the cost of living. * Canadians Oppose Longer Trucking Hours A poll shows overwhelming opposition to a federal- provincial proposal to lengthen the work week of truck drivers from 60 to 70 hours. Of 1504 people asked, 83% oppose increasing the weekly limit on truck driver hours. And 86% favour reducing the consecutive hours truck drivers in Canada can drive from the current 13 to the U.S. limit of 10. There was also overwhelming opposition to allowing larger multi-trailer trucks on the road. The Angus Reid trucking safety poll, was commissioned by Canadians for Responsible and Safe Highways (CRASH) and released April 24. Bob Evans, Executive Director of CRASH, says, "The strong opposition by Canadians against bigger trucks and against longer hours for truck drivers is a wake up call to governments." * Alternative Fed Budget Urges 36 Hour Week The 1998 Alternative Federal Budget (AFB), developed by a coalition of activists, academics and policy researchers, calls for major federal efforts to redistribute work time. The AFB was released last February, prior to Paul Martin's official effort, to offer a comprehensive progressive alternative to existing budget priorities. This year's AFB, prepared by the Canadian Centre for Policy Alternatives and Cho!ces: A Coalition for Social Justice, focuses on reinvesting in Canada's damaged public infrastructure while maintaining budget balance. In the chapter on job creation, the drafters of the AFB maintain that "most work time issues are best negotiated between employers and workers and their unions." But they say the federal government could help by establishing an office to monitor work-time arrangements and to encourage workplace negotiations which create jobs by redistributing work time. The AFB would also "commit the federal government to allocate funds to subsidize negotiated work-time reduction and redistribution agreements which create new jobs." And it would make the Canada Labour Code -- which covers about 10% of all workers -- a model statute by: - reducing the standard work week in federal jurisdiction to 36 hours - giving workers the right to refuse overtime - limiting overtime hours to 100 hours per year - giving workers the right to return to a job after taking extended parental or educational leave - requiring employers to provide equal pay and benefits to part-time workers The AFB would actively encourage provincial governments to adopt similar standards and to strengthen enforcement of employment standards. The report adds that work time should be seen to include hours spent in unpaid labour such as child care, housework, and volunteer work: "Women's total workload (paid and unpaid) continues to be greater than men's. Any attempts to redistribute work time must take these balances into account." * Canadians Got Poorer in 90s A new study confirms what many suspected -- that Canadians got poorer in the first half of the nineties. Statistics Canada reports that the recession of the early 1990s wiped out the economic gains of the late eighties. Incomes fell by an average 6% from 1990- 95. In fact, the national average per capita income of $25,196 in 1995 was back to its 1985 level. Almost all Canadians were hit -- incomes fell for all age groups, both genders, in all cities but two, and every type of family unit. "This is probably the first protracted period of income decline since the 1930s," says John McCallum, chief economist of the Royal Bank. The Globe and Mail (May 13, 1998) cites vigorous attacks on inflation and deficits, along with widespread corporate restructuring, as the main reasons for declining incomes. The study confirmed that while job creation has picked up since 1995, most new positions are part- time, low-paid and often temporary. It also shows how far behind visible minorities and aboriginal people are -- with incomes below the national average by 15% and 34% respectively. Average income for men dropped 7.8%, versus 2% for women. But men still earn far more than women on average -- $31,117 compared to $19,208. During 32 HOURS sectoral dialogue last year, we repeatedly heard that intense economic insecurity is a major obstacle to people embracing shorter work time. This study explains a large part of the reason for that feeling. In such a context, one has to wonder whether any proposal that would legislate shorter hours with a loss in pay, even if it is less than proportional, has any hope of gaining public support. 32 HOURS has long had a vigorous internal debate on whether shorter hours should involve any loss in pay. We've evolved towards a position that says there must be no income loss imposed on low-income workers (those below a threshold of roughly $35,000), but above that level the wage question should be open for negotiation. Does this study suggest a need to re-think that position? We'd like to hear your comments on this essential question, and to open up these pages for that debate. IV. WORTH READING * 3 Articles by John Willis "This Week Has 32 Hours" is the title of John Willis' March article in This Magazine. But Willis finds commitment to that goal among government, business, and labour in B.C. to be lacking, despite the province's financial support for shorter hours in the forestry sector. In "The 32-Hour Cure" in the Spring 1998 issue of the environmental magazine Alternatives, Willis explores how a shorter the work week could create more jobs and foster sustainability. He sees little sign to date that the environmental movement in Canada is prepared to solidly get behind this issue, but adds that "a sustainable future is only possible if industrial societies learn that time is more valuable than money." Also watch for the July issue of This Magazine, with a discussion on the future of work moderated by Willis. The participants are Andrew Jackson (Canadian Labour Congress), Julie White (Communications, Energy and Paperworkers), Mike McCracken (Informetrica), Arlene Wortsman (Canadian Labour Market and Productivity Centre), and Anders Hayden (32 HOURS). * 500 Years Ahead of His Time? "The Utopians divide night and day into twenty-four hours of equal length and assign only six to work: three before midday, after which they go to lunch; after lunch they have two hours in the afternoon for rest; after that they work for another three hours before dinner. . . . The purpose is not to allow them to waste this free time in wild living or idleness, but to enable them to apply their minds to whatever useful pursuit they wish in their free time. "... For as they spend only six hours in work, it might be that you think a shortage of supplies must follow. This is quite the reverse of the truth. In fact, this period of time is enough and more than enough to provide everything needed to support life or make it more comfortable. You will easily understand this if you remember how large a part of the population is idle in other countries. "... So with everyone practicing useful crafts and fewer men needed for each, as there is great abundance of supplies, occasionally they lead out a huge crowd to repair the public roads if any are worn away. Very often not even such work is required and so they make a public announcement of fewer working hours. For the magistrates do not exercise the citizens against their will in unnecessary work, since the institution of this republic has this one chief aim -- that, as far as public necessity allows, all citizens should be given as much time as possible away from bodily service for the freedom and cultivation of the mind. For there, they think, lies happiness in life." Sir Thomas More, Utopia (1516)