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Tony Veal says the recent glowing publicity about Iceland's success with a 4 day work week has been seriously oversold, doesn't actually involve a 4 day week, and just takes the 8 hour day to 7 or 7.5

Tony Veal says the recent glowing publicity about Iceland's success with a 4 day work week has been seriously oversold, doesn't actually involve a 4 day week, and just takes the 8 hour day to 7 or 7.5

By Anthony Veal

It almost seems too good to be true: a major trial in Iceland shows that cutting the standard five-day week to four days for the same pay needn’t cost employers a cent (or, to be accurate, a krona).

Unfortunately it is too good to be true.

While even highly reputable media outlets such as the BBC have reported on the “overwhelming success” of large-scale trials of a four-day week in Iceland from 2015 to 2019, that’s not actually the case.

The truth is less spectacular - interesting and important enough in its own right, but not quite living up to the media spin, including that these trials have led to the widespread adoption of a four-day work week in Iceland.

Four hours at best

The media reports are based on a report co-published by Iceland’s Alda (Association for Democracy and Sustainability) and Britain’s Autonomy think tank about two trials involving Reykjavík City Council and the Icelandic government. The trials covered 66 workplaces and about 2,500 workers.

They did not involve a four-day work week. This is indicated by the report’s title – Going Public: Iceland’s journey to a shorter working week. In fact the document of more 80 pages refers to a four-day week just twice, in its first two paragraphs, and only then as a reference point for what the trials were actually about:

In recent years, calls for shorter working hours without a reduction in pay — often framed in terms of a ‘four-day week’ — have become increasingly prominent across Europe.

Read on to the third paragraph and you’ll learn the study “involved two large-scale trials of shorter working hours — in which workers moved from a 40-hour to a 35- or 36-hour week, without reduced pay”.

A four-day week trial would have involved reducing the working week by seven to eight hours. Instead the maximum reduction in these trials was just four hours. In 61 of the 66 workplaces it was one to three hours.

Which is not to say the results – no adverse effect on output or services delivered – is unimpressive. Nor is the upshot. As a result of the trials, unions and employers have formalised country-wide agreements to make reduced working hours permanent.

But these have provided for a reduction of just 35 minutes a week in the private sector and 65 minutes in the public sector (though larger reductions are available for shift workers). That’s a long way from making a four-day week the norm.

The ‘Hawthorn effect’

In interpreting the results of such studies, we always need to be cautious.

In regard to this and similar experiments, it is always possible the “Hawthorne effect” might have been at work. This effect refers to 1930s experiments with factory workers in the US that showed how their awareness of being the subject of experiments affected their behaviour, and hence productivity levels.

Could this have been at work in the Iceland trials? The work units involved volunteers to take part in the experiments and so might well have been motivated to make them work as intended. This may not be replicated in more widespread changed working arrangements.

Workers could, of course, be expected to enjoy reduced working hours, but would they replicate the working practices required to maintain productivity levels?

This depends on the nature of these changed working practices and their sustainability. This in turn may depend on whether enhancements in productivity are achieved by harder or more intensive working or by “smarter” working and/or improved equipment. This all calls for further research.

Furthermore, in service-industry settings such as the Iceland examples, a control sample of similar workplaces should ideally be monitored to be sure of the reliability of the conclusions drawn.

A four-day week won’t come easy

Despite these words of caution, there is still a strong case to be made for a four-day week. It’s a case I’ve argued previously in my book Whatever Happened to the Leisure Society? (Routledge, 2019).

There is no reason why the long-term march towards reduced working hours should stop at the arbitrary “standard” figure of five days and 40 hours established in the post-World War II period.

Experiments will continue. I’ve written previously in The Conversation about some of these in Japan and New Zealand. The Autonomy think tank has counted a dozen, most of them by smallish “creative” agencies but also by consulting heavyweight KPMG.

But I don’t think widespread adoption of the four-day week will come easily or necessarily all in one go. Instead it’s going to have to come incrementally.

It took half of the 20th century and a great deal of campaigning against concerted employer opposition for workers in Western industrial societies to reduce their standard working week from 60 hours over six days to 40 hours over five days.

It’s just not likely to come as effortlessly as these misleading reports suggest.The Conversation


Anthony Veal, Adjunct Professor, Business School, University of Technology Sydney. This article is republished from The Conversation under a Creative Commons license. Read the original article.

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19 Comments

Nice thought but it does throw into focus the work requirements of different sectors. For instance Nursing. It is a 365 day a year 24 hours per day service. I don't doubt that many office based workers can achieve 5 days work in 4 days. Tell that is what you expect to a nurse. Their reality is that they work so hard and under such stress that many cannot sustain full time employment and 4 day weeks are common. On this basis and in the context of what they are doing now they should be paid 5 days pay for 4 days work to get some sort of equity to what is expected of other workers. Obviously there are other groups in a similar boat. Only after we have sorted this inequity should we be considering reducing the working week for everyone.

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It really is job dependent. If your job is doing things, then a 4 day week will no doubt decrease productivity. If your job is thinking about things (architect / planner / developer / etc) then it can actually make your mind more focussed and help you see the bigger picture.

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Are you suggesting that nurses are some way academically inferior and not having to think?
It is not the physical stress that knocks them out, it is the mental stress.

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I wasn't meaning to imply that (it sounds bad when I read it now). Its more that when you have a lot to do physically (as nurses do) you are unlikely to achieve as much in less hours. And the flipside doesn't have to be academic, for example it could apply to a music artist too: they might be able to write their best music with less continuous thought and more breaks, but when it comes to performing it they won't achieve more in less hours.
And of course anyone who is overworked can become much less productive, but that seems mostly out of scope when talking about decreasing a 40 hour week.

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I think I understand what you mean.
My other half is an software engineer, his firm actually believe that after 6 or 7 hours a day developing code that tiredness/ fatigue can actually cost them money by introducing errors/ bugs/ inefficient code etc so they only want their devs doing max 7 hr days.
The same can't apply in a general sense to nursing because its not productive, its a 24/7 service. Our job is very unpredictable day to day just like police and firefighters. Some days all my tasks might only take a couple of hours, other days I can't get a break.

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I'm sure there are many studies that have proven that after 6 hours, productivity decreases due to a number of factors, fatigue, concentration etc. What comes first - productivity or health/wellbeing?

The 4 day week will only be a solution for some.

Why not turn 12 hour shifts into 6 hour shifts? More people employed, better work/life balance for these workers. It was the reason there were once laws setting the 40 hour week. What happened there?

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Yes rotating shift nursing work is very tough to do 5 days per week. In my ward of 45 nurses, only 1 does 1.0 FTE. The rest are 0.8 or 0.9 FTE.
For example my shifts (at 0.8 FTE) this week are go in on Monday night, work till 7am Tuesday, day off Wednesday, then work Thursday, Friday and Saturday work afternoon shifts, day off Sunday.
I hate that the media talk about penal rates as factored into our wage every time pay negotiations come up. The $7 per hr extra I get for working night shifts is nowhere near worth it considering the effects it has on your sleep cycle.

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Keynes estimated that we would be working around 15 hours per week by 2030. He was about right on the scale of productivity increases we would see, but he didn’t factor in just how powerful extractive capitalism would be, or that we would create and consume so much more than we actually needed. I am guessing he would have been particularly confused to find that a country like NZ would have 1 in 3 working age men not working (compared to 1 in 10 fifty years ago). Ain’t progress great?

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That stat is rubbish. I was checking the composure of the working aged population earlier today. From the StatsNZ Infoshare database, as at March 2021 (the latest data) there were 1,662,500 men of working age. 1,292,200 of them were in full time employment, plus another 170,200 in part-time employment. That means 88% of them were working, or 292 of them for every 333 ( or more generally 9 of 10 ). So miles more than your claimed 1 in 3 not in work - not even close.

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Or 1 in 10 working age men not working (compared to 1 in 10 fifty years ago).

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If you don’t know how much male labour force participation has plummeted in the last 50 years, you’re probably best not commenting..

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Now, to be fair, this made me check my stats properly rather than working of proxies. But now I’m really worried about the world - how far from reality are our commentators if they think that employment is running at close to 90% for males?!?

There are 2 million men of working age in NZ. My lazy maths let me down, but there are still 500,000 not in the labour force at all. A 75.5% labour force participation rate - meaning 1 in 4 are doing no paid work. The underutilisation rate is around 10%, which I bundled in perhaps mistakenly to get to the 1 in 3 figure I quoted. But nevertheless - it’s a disaster. https://www.stats.govt.nz/assets/Uploads/Labour-market-statistics/Labou…

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Looking at it another way. Unemployment ~5% represented by 500,000, then employed 10million. Something not right here.
It doesn't even match that you are employed if you work 1h? a week. There is a disjoint somewhere between under employment and full time under employment figures. Needs better analysis.

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Unemployment claimants + employed does not equal the working age population! Jaysus

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I think the 4 day work week is output dependent (measured in dollars).

Reducing number of hours worked without increasing productivity results in output erosion. Given that we are struggling with productivity issues, further reduction in work hours will have a detrimental effect on the NZ economy.

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Exactly. While most Wellington bureaucrats could ditch a day without productivity loss, it's a stretch to expect any trades/manufacturing to output 25% extra to make up for the lost day.

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Yes and then if they pay the same weekly pay with less getting done, more cost to the consumer, yay.

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We might be struggling with productivity, but we are not short of ‘output’ - we produce enough food for 40 million people for a start. The issue we have is that the wealth generated by our collective output is distributed really badly.

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He doesn't mention Australia, but I was working a negotiated 4 10-hour day week, in Sydney in 1980. Factory productivity went up.

But then all the South Americans wanted to work Friday overtime.....

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