Czechs considering four-day work week to stem unemployment

One of the ways to contain the current economic crisis, it seems, might just be to work less, and a plan to that end is gaining currency in the Czech Republic. The four-day work week has stemmed the rise in unemployment elsewhere, and now it’s an idea that is getting support from all sides of the table.

At first glance it may not seem an obvious method of combating unemployment in a crisis, but the four-day work week has already had some success in Germany and Austria. Now as companies in the Czech Republic, like elsewhere, struggle with decreased demand, and in turn decrease their wages and workforce, the idea is that the state would subsidize them to send workers home for a day rather than lay them off. One of the Czech Republic’s leading economists, Tomáš Sedláček, told me why such a plan could be of use:

“It has the advantages that the costs are carried by all, or in this case specifically the state, and the person is more likely to find a new job once the order book is being filled again. So it is more levied, so to speak, it does not really kick in to unemployment, the person does not have to look for new ways of employing himself or herself. And it is especially efficient in companies that are cyclically affected, and if this crisis is short lived then this makes good sense. And another advantage is that people have more free time, and they are willing to take a decrease in real wages - if that is to be the case – more willingly than if they still had to work five days a week.”

What’s more, there seems to be tentative support for such a plan across the board. While the banner of the four-day week has been taken up by labour unions and the centre-left Social Democratic party, the interim technocratic Finance Ministry has said it is not opposed, and even the conservative Civic Democrats have said it is one of the options on the table. But of course, no plan is without its drawbacks.

“The disadvantage is if the crisis ends up being long term, because this is something that is sustainable only for a limited period of time if it is carried by the government alone. It also decreases the competitiveness of a country and it obviously decreased the output, which is currently decreasing on its own.”

Another question is whether it is not too late already to put such a plan into action. Even if it does receive the support of whatever government comes out of autumn elections, the plan could only be put in place in January, and mid-2010 is even more likely. Faint but positive signs pointing to better economic times on the horizon suggest that such a system could be rendered needless not long after their implementation.

Mr Sedláček for one believes it might be a good idea in any case; that if the weight is born by all, that is, by the state, the employer and the worker, the end result is not only better than laying people off, but could have other vital benefits as well:

“I think that our civilisation, as it is right now, already has enough, I think our civilisation does not have a problem with hunger, or with malnutrition. One of the main problems that our civilisation does have on the other hand is stress, burn-out and psychological problems. Our society cannot rest, and I don’t think the four-day work week necessarily means going in a bad direction, the trade off of course will be a decrease in production and a loss of competitiveness but, if it is something that we want, then why not?”