Work Sharing | Work-sharing could work for us – Los Angeles Times

Where this is headed is to a shorter work week. And leaves more time for drumming and dancing, community gardens, and everyone teaching skills to kids and one another.

After surveying policies around the world, we found that there is one that clearly dominates in terms of impact and cost-effectiveness: work-sharing. The idea is simple. Currently, firms mostly respond to weak demand by laying off workers. Under a work-sharing program, firms are encouraged by government policy to spread a small amount of the pain across many workers.

In Germany, for example, which has used work-sharing aggressively in this downturn, a typical company might reduce the hours of 50 workers by 20% rather than laying off 10 workers. The government would then provide a tax credit to make up for most of the lost pay, with the employer kicking in some as well. In a typical arrangement, a worker might see his weekly hours go down by 20%, and his salary go down by about 4%.

via Work Sharing | Work-sharing could work for us – Los Angeles Times.