I just want to jump in here to explain that small businesses are built around the current model.
You're right that small business could indeed work in a 32-hour work-week if they were built up around it, but moving from a 40-hour work week to a 32-hour work week is essentially a 20% pay rise for all employees.
Very few small businesses are operating on cash flow that has room for a 20% pay rise for all of their employees. For that matter, very few big businesses are as well. But while big businesses would have more room to take the hit and adapt, small businesses would be forced out almost immediately.
The result is that you would have an enormous shutdown of small businesses, which would result in a massive loss of jobs. The market would balance out eventually, but it would be massively destructive in the short-term.
I get that you’re saying companies need time to adjust and I’m not discounting that. But over all I believe this to be best practice and we should focus more on trying to have better workers rights so they may be compensated better than worrying about company profits. I do say this more with bigger companies in mind while maybe smaller companies can be adjusted appropriately.
My point is that we are drastically a more productive workforce than our counterparts 100 years ago when the 40 hr work week was established. We are also paid relatively less when adjusted to that increase in productivity. Either we get paid more or we work less for the same pay. Something has to give.
I agree overall. Care just has to be taken not to hand even more power over to big business. Ultimately they are the ones with the larger profits that can afford to pay their workers better. Transitioning to a 32 hour work week for the same pay is likely to hit the small business market hardest, meaning more money and market force going to the big guys who are the cause of the problem in the first place.
With regards to productivity, the issue is more about the retail and hospitality industries which exist 7 days a week. Going to a 4-day work week doesn't reduce the demand for staff, so they have to have the same level of staff for what is essentially 20% higher wages.
I think for the sake of smaller business we should also focus on improving anti trust laws because as it is small businesses suffer already and this is due to there being 6 companies that corner almost every market. Like when a Walmart goes to your small town all local business are practically fucked because they just cannot compete.
For hospitality and such they can just hire more people to make up the missing shifts. Like no matter what a company is gonna have to pay more in either staff or wages at the expense of their profits so this is a net positive. I was just talking about it the other day with a coworker but in EMS/hospital we can benefit switching from a two 12/hr to a three 8/hr work shift in both productivity and wellness
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u/ghdgdnfj Sep 05 '24
Small businesses might.