Monday, November 23, 2009

Money & Business

In Praise of Long Hours

British firms, saying flexibility breeds prosperity, battle a European Union move to cap the length of the workweek

By Thomas K. Grose
Posted 11/5/06
Page 2 of 2

A matter of choice. Britain contends the 48-hour week is a sham because in most countries, short-term or multiple work contracts are used to skirt the law. "There are certainly ways people get around it; that just shows the weakness of the legislation," Briault says. Short-term employment contracts have become so prevalent in many sectors, especially automotive, that Eric Chaney, chief European economist at Morgan Stanley, jokes: "Carmakers in France have no employees on their payrolls." Struggling aerospace company Airbus has 7,300 temporary workers in Germany, a third of its workforce there. Nearly 15 percent of German workers overall are on short-term contracts.

Many economists say Europe's adherence to an outmoded social model leads to a so-called inside/outside workforce that protects older full-time employees but leaves younger, contract workers out in the cold. Says Paola Subacchi, an international economist at the Royal Institute of International Affairs: "It's protection only for people in full employment. Large numbers of employees do not get any protections." Tilford expects that if Britain's opt-out is canceled, U.K. businesses too will find ways to carry on as before: "It won't make much difference. People will continue to work what they want, and it won't change things."

Advocates of flexible work schedules say they have helped keep Britain's unemployment rate relatively low and its small businesses healthy.
PETER MACDIARMID--GETTY IMAGES

Clearly, the Brits are a hardworking lot. Britain's Trades Union Congress says that they work an average of 44 hours a week, four more than workers in the 14 other original EU countries, and that 16 percent work more than 48 hours a week. But the workers don't seem to mind. A recent poll found that 52 percent of Britons reject limits on the workweek. The Confederation of British Industry says how much someone works is a matter of personal choice and a "basic right." But Paul Sellers, a TUC policy adviser, says overworked people are more prone to illnesses, and when it comes to health and safety issues, personal choice comes second. "Undermining your own safety can affect others," he says. Sellers also argues that heavy schedules are bad business. "Studies show when people work long hours, productivity drops off."

But Simon Mansell, managing director of TBG, a London Web ad agency, counters that long workweeks are often necessary to keep a business competitive. "The secret," he says, "is to reward staff for putting in extra time, so they see it as a benefit, not a chore." Goldstar's Willox says if the law changes, his workers will suffer. "I don't understand why they want to cut off my staff's chance to earn extra money."

There is the possibility of a compromise. Finland is pushing a plan that would continue the opt-out from the 48-hour limit but install a 60-hour-a-week ceiling. But, Tilford argues, any sort of limit "sends the wrong message" to potential investors that Europe's labor market remains too regulated. And in this instance, the U.K. would prefer to remain off message.

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