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Amid the cancellation of classes in various parts of the country due to the extreme heat being experienced, there were calls for government work to adapt a compressed workweek. This is to reduce the exposure to extreme heat that may mitigate harmful effects to not only government workers but also to individuals transacting with government agencies. The compressed workweek will be from Monday to Thursday with extended work hours from 7am to 6pm in order to meet the required 40 hours weekly.
This is not the first time that this compressed workweek was proposed. This working arrangement has been proposed in various fora for various reasons since 2011.
This is also already being implemented by various LGUs. Some LGUs that announced this work arrangement include the Province of Cavite and the Municipality of Binmaley in Pangasinan, and the Department of Finance, among many others.
In an interview with the Atty. Aileen Lourdes Lizada, Commissioner of the Civil Service Commission last April 25, 2024, she emphasized that even if a compressed workweek is implemented in government offices, it does not mean that there will be one day in the week where there will be no one in the office.
According to the Commissioner, there should still be employees in government offices to serve the general public from Monday to Friday. This means that employees would have to be in rotation as to who will render work from Monday to Thursday or Tuesday to Friday.
On the other hand, for the private sector, the employers and owners of these firms have the freedom to implement a four-day workweek for their own companies.
What could be the economic implications of having a four-day workweek?
Implementing a four-day workweek could have various economic implications, both positive and negative. For the positive effects, productivity is first in line. Many proponents argue that a shorter workweek can lead to increased productivity. With longer weekends, employees may return to work more refreshed and focused. However, this depends on the nature of the work and how well employees manage their time during the shortened workweek.
Secondly, cost savings. For businesses and private companies, reducing the number of workdays can result in cost savings. This could be seen in reduced overhead costs such as electricity, air conditioning, and maintenance for office spaces.
Thirdly, a solution to the road traffic situation. This could be a short-term solution to the worsening traffic condition especially in most urban centers. Energy costs and pollution may be reduced, while employees may have more leisure time to spend with family and friends.
Lastly, increased consumer spending. With more leisure time, employees may have more time for recreational activities, travel, or spending time with family and friends. This increased leisure spending could stimulate economic activity in various sectors such as tourism, entertainment, and retail.
However, there could be potential negative effects if a four-day workweek is implemented. There is a potential that income will be reduced. This is particularly for the wage earners, particularly those who are paid based on a daily rate not on hourly or piece rates. A shorter workweek would mean a loss in a dayβs wage. This would have a detrimental effect on the household income and consumer spending.
Another negative effect may include investorsβ reaction. Sergio Luis-Ortiz, Jr, President of the Employers Confederation of the Philippines (ECOP) warned that changing the work schedule may not be appealing to investors. Schedules may get disrupted. Plans and costing may be adversely affected.
The economic impact of a four-day workweek can vary across different sectors. Industries with high labor costs, such as manufacturing or healthcare, may face challenges in implementing shorter workweeks due to the need for continuous operations. On the other hand, sectors with more flexibility, such as technology or professional services, may find it easier to adopt such policies.
Overall, the economic implications of a four-day workweek are complex and depend on various factors such as industry dynamics, labor market conditions, and organizational structures. While there are potential benefits in terms of productivity, employee satisfaction, and cost savings, there are also challenges and potential trade-offs that need to be carefully considered.