Researchers are suggesting a bold new idea: working just four days a week while earning a higher minimum wage. Imagine working less and getting paid more! Of course, this might not sit well with some in management, but the New Economics Foundation (NEF) has a compelling case. According to their research, if companies agree to a four-day work week and raise the minimum wage, even the lowest-paid workers in the UK could see a 13% income boost by 2030.
Right now, the UK is facing a productivity crisis. Over the past decade, labor productivity growth has been sluggish. But experts at NEF have a plan to turn things around. Alfie Stirling from NEF explains, “The problems run deep, from high inequality to an aging population. We need transformative solutions. Raising incomes for the poorest families and giving people more time off should be part of the policy mix that leaders urgently consider.”
It might seem counterintuitive, but working less could actually make us more productive. The focus should be on what workers do, not just how long they do it. The research suggests that by 2030, a four-day work week combined with a pay raise could make life more comfortable for many. The proposal includes increasing the minimum wage from €12 to €19 per hour, which would significantly boost the incomes of the bottom 50%. The lowest earners could see a 26% income rise, while the top 10% might experience an 8% decrease.
The Labor Party is backing this plan. Last year, shadow chancellor John McDonnell mentioned that his party might support this idea as a way to help workers benefit from automation and technological advances. He pointed out that UK workers put in the longest hours in Europe, yet they’re less productive than their counterparts in France and Germany.
Trade unions are on board too. Frances O’Grady, General Secretary of the Trade Union Congress (TUC), reminds us that in the 19th century, unions fought for the eight-hour workday. By the 20th century, they secured the two-day weekend and paid holidays. Now, they’re aiming for a four-day work week with decent pay in the 21st century. O’Grady argues that wealth should be shared, not hoarded by those at the top.
Looking back to 2007, today’s minimum wage of €15 per week is just not enough. Plus, who wouldn’t want an extra day off? What do you think? Could this plan work for people in the United States?
