Hope your Christmas and Hanukkah holidays were enjoyable. City Hall is closed from Dec. 24 through Jan. 5 for the annual furlough. Like many people, I am spending time with family and reconnecting with friends. I have known many of my friends since San Jose grammar school in the 1970s and ’80s, so that puts us in the 35-45 age range. Most of my friends are married with children and both parents or partners work. Our discussions usually include catching up and memories of the past. This year, however, our conversations were mostly about the economy.
Many of my friends felt pretty bleak about 2009. Some were hoping that they could fast forward to Christmas 2009 just to get away from the recession. They were pessimistic since they knew that sales results for this quarter were poor and forecasts for next year are down. Also, their own companies (like their customers) are putting off spending. Nearly everyone I’ve spoken to over the holidays have told me their companies did an RIF (reduction in force). Also, they felt more layoffs were coming.
One friend told me that his employer went from 400 employees to 220 over the span of 2008, and come January 2009, they are going to do a 50 percent layoff. The company did not want to lay people off just before the holiday, so they chose to wait till the first week of January. The reason? No orders from customers. And these same customers were poised to do layoffs as well. My friends chatted about not wanting to get laid off since the prospects for a new job are not bright.
One employer went to a four-day week so the company could save money (survive) but keep their talent. When this topic came up, nearly everyone said that they would rather have the four-day-a-week job, making less money, then have to roll the dice on a new job. They also felt that three-day weekends would be relaxing. However, they would need to hold back on discretionary spending to cover their basic expenses. A few thought it better to have 80-85 percent of your salary and an extra day to start interviewing.
Many European companies are switching to a four-day work week. The goal is that companies will be able to reduce their costs (payroll and carbon footprint) and provide an additional rest day. Economic conditions in Europe, exemplified by weak market demands and high levels of productivity, have made this idea more popular. Companies have been able to minimize the number of layoffs with the shortened workweek. However, this involves more working hours per day, but most in Silicon Valley would admit that they already work more then eight hours in a day. Rumor has it that Cisco, National Semiconductor and Oracle are looking at four-day work weeks.
If your employer asked you in January to switch to four-day work week with a pay cut, would you say yes or hit the road? If you said no: Would you go out and find another job in your industry or career change? If you said yes: Would you enjoy that extra day of free time or be too stressed on making your basic payments? Should government hold back payroll spending during recessions to avoid layoffs and switch to a four-day work week, like the city of Atlanta?
During the depression I believe that the unemployment rate was 25%. My father was a printer and he worked for the Oakland tribune newspaper. The employees there only worked 2 days a week and they all worked, instead of a few working fulltime. I cite this as an example of what can be done in times of a bad economy.
I’m not sure I like the meme where ‘We all wait until the economy gets better,’ like the economy has a flu and just has to wait it out.
Is working LESS going to get us a better economy? Keeping people at home, looking out the window waiting for everyone else to start buying Buicks, does not create value and in fact further throttles consumer spending.
I would encourage any solution where people work HARDER to generate value, and either accept deferred pay or equity as payment. Or at the least, encourage or incentivize people toward volunteer or charity work or drawing up future San Jose BART schedules or something.
“Rumor has it that Cisco, National Semiconductor, and Oracle are looking at four-day work weeks.” Was that a stock tip, Pierluigi?
Pier,
Businesses, Unions, and employees need to work together to get through these tough times. If taking a cut in pay, and in benefits keeps you employed and insured, then I say go for it.
Pierluigi,
Although I do not live in your district I do read your blog almost every week and want to say thank you for actually writing on real topics.I work at an eCommerce company and would welcome a 4 day work week to be with my children plus one less day commuting to work in my car. I sent your blog to my husband and he agrees with me.
Councilmember:
I also agree with having a four-day work week with pay and benefits adjusted accordingly.
The employee should at least have the ability to choose what day of the week to have off – with permission from the employer, of curse.
Having a weekday off gives parents time to make sure kids do their homework and stay out of trouble. How often is it broadcast that kids end up joining street gangs because no parent is home before the evening hours to monitor them?
If promoted right and used properly, community involvement and informed citizenry with a 4-day work week would double. People would have more time to get involved with their community as a volunteer at things like adult literacy or park cleanup. People would actually have time to learn about issues affecting their neighborhood, city, state, and county – and who represents them on these issues. Too often I’ve had people tell me they don’t have time to get involved in telling government what’s needed to improve their lives – a right guaranteed to them by our Constitution for over 232 years.
More than ever, an informed and educated citizen is a nation’s best friend. If done right, a 4-day work week can make this possible.
“Is working LESS going to get us a better economy?”
5 x 8 = 40
4 x 10 = 40
We need to start emulating 3rd world countries; no child labor laws, no environmental laws, no workers rights laws.
Let your employer work you, and your family, 100 hours a week for pennies a day. That is how it is done. I am tired of all you lazy pansy-ass wussies not working hard enough. Try emulating all the great American CEOs who make our country strong. They know how to work, unlike the lazy, whining boobs they have to hire.
#6, your math is correct, except that Cal labor laws require OT pay for anything over 8 hours in a day, so the employees’ pay actually increases. I don’t think that’s the intent. The only way to save money is to reduce pay or hours worked.
I support a 4 day week with reduced pay, if the hours don’t stay the same. I work in tech (big surprise eh?) and already work 10-12hr days 5x per week. 4×8 would be a dream and the time with my family would be great. Now I often leave the house before the kids are up and return home after bedtime.
We are a single income family, what would actually be best would be to extend benefits to part-time workers (and make part-time professional work available). This would allow both my wife and me to work yet both have plenty of time with the kids. This would be an incredible increase in quality of life for my family.
Automotive supplier Visteon Corp. said today it will shift more than 2,000 workers to a four-day week and cut their pay by 20 percent as auto sales continue to founder.
Logitech International has withdrawn its fiscal 2009 sales targets and is planning a restructuring that includes cutting approximately 15 percent of its work force.
Reports have put the job cuts at more than 500.
Logitech has its headquarters in Fremont.
Administration officials say the furloughs will affect about 235,000 of the state’s more than 300,000 employees. Officials estimate the plan will save $1.3 billion through mid-2010. The state faces a $40 billion deficit over that period and is slated within weeks to run short of cash to pay its bills.
http://www.mercurynews.com/breakingnews/ci_11419212