MondayTuesdayWednesdayThursdaySaturdaySaturdaySunday... Unilever's '4-Day Workweek' Experiment

Pilot Introduced in New Zealand... Company-wide Application Reviewed After One Year
Seeking to Maximize Work Efficiency in the COVID Era
New Zealand Government Actively Encourages to Boost Consumption
Claims That Work Stress Actually Increases

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Global food and consumer goods company Unilever is drawing attention as it embarks on an innovative experiment with a '4-day workweek.' The main task is to achieve the workload designed for five days within four days. Since this initiative is being implemented at a time when changes in working styles such as remote and flexible work are being actively discussed due to the COVID-19 pandemic, if successful, it is expected to increase interest among companies in adopting a '4-day workweek.'

According to major foreign media on the 7th (local time), Unilever's New Zealand branch recently began a pilot program of a '4-day workweek' that maintains wages but reduces working hours by 20%. The New Zealand branch employs 81 staff members, all of whom will participate in this experiment. They are required to complete the same amount of work in four days as they did in five over a 12-month period. The company responded to concerns that the reduction in working days might result in longer daily working hours by stating, "The point is completely wrong."

Unilever's experiment came as a way to find measures to improve work efficiency amid significant changes in working methods due to the COVID-19 pandemic. With flexible work arrangements such as telecommuting, production levels have not changed significantly, leading to a more bold approach. Nick Bangs, a director at the company, explained the background of the introduction, saying, "The goal is to measure work performance based on output rather than time," and "This experiment aims to gauge the long-term impact of the 4-day workweek on the future of Unilever."

Unilever is especially notable because it is a manufacturing-based company. While there have been several cases of 4-day workweek adoption in the service industry, it is difficult for manufacturing companies due to the need to operate factories daily. The New Zealand branch is small and only has non-manufacturing departments such as sales, distribution, and marketing, indicating a reluctance to apply the system hastily to manufacturing. Bangs also mentioned, "It would have been difficult to implement if there were manufacturing employees." Unilever plans to diversify the working styles of its approximately 155,000 global employees after evaluating the experiment, suggesting changes in manufacturing work as well.

The New Zealand government's encouragement of the 4-day workweek is also considered a favorable condition for the experiment. The New Zealand government has already proposed reducing working hours as a measure to revitalize the domestic economy, including the tourism industry hit by COVID-19. According to the New Zealand Herald, Prime Minister Jacinda Ardern stated in May, "We experienced high productivity from flexible work systems such as telecommuting during the COVID-19 crisis, and as a result, I strongly want to encourage the adoption of the 4-day workweek," adding, "It will also help economic recovery." The logic is that reduced working hours increase leisure time, which boosts consumption and leads to domestic economic revitalization.

There has already been a similar case in New Zealand. Andrew Barnes, founder of the real estate trust company Perpetual Guardian, introduced a 4-day workweek pilot for two months in 2017 after consulting with the University of Auckland while considering ways to improve employees' work-life balance and productivity. About 240 employees were allowed to take one day off during the week in addition to Saturday and Sunday, choosing the day they preferred. As a result, 78% of employees reported significant help in balancing work and personal life. The company also reported improved productivity and made the system permanent.

Andrew Barnes said, "The key to productivity improvement is 'focus' rather than working hours," and added, "The 4-day workweek has a positive effect on both company development and employees' personal life satisfaction."

The 4-day workweek is gradually spreading. It is being adopted not only in Northern European countries such as Germany, the Netherlands, Denmark, and Sweden but also in Japan, known for its long working hours. Companies such as Uchiayama Holdings, which operates nursing facilities, Japan KFC Holdings, a fast-food franchise, and Satake, a machinery manufacturer, have adopted the 4-day workweek. The shortage of labor due to low birth rates and aging populations is also cited as a reason for reducing working hours. The American hamburger chain Shake Shack also piloted a 4-day workweek at some stores in the western United States in March last year.

However, despite this trend, there are many opposing views that it is premature. Supporters argue that it contributes not only to companies and workers but also to revitalizing the domestic economy, but preparations for institutional adoption are still insufficient. Moshe Lander, an economics professor at Concordia University in Canada, expressed concerns, saying, "Social preparations such as measures to address increased responsibilities for childcare and education at home must be made."

There are also warnings that simply reducing working hours without changing work methods may cause new problems rather than improving quality of life. According to a survey on work style improvements conducted by Takahashi Bookstore targeting office workers, more than 53% of Japanese companies are leading changes in work methods to match reduced working hours, but 41.5% of them report more difficulties. The work methods remain the same, but reduced working hours have increased stress. Because of this, a new term "Jitahara," a combination of "time reduction (jitan)" and "harassment," has emerged in Japan.

The UK Labour Party also evaluated in a report published in September 2019 that "the 4-day workweek is unrealistic," stating, "While some workers want to work fewer hours than the existing working hours, most end up working more than the existing hours."

This content was produced with the assistance of AI translation services.