https://www.fatherly.com/news/california-four-day-work-week-…
intercst
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Interesting that unionized workforces or those with collective bargaining agreements are exempt from the new law. Not sure why.
In general terms, it would seem that if a company were able to get everything done that they needed to remain profitable utilizing the output of all of its employees in 32 hours each week then they would have laid off one-fifth of the workers some time ago.
But if the company will need to pay overtime to get everything done then their costs go up significantly. They are then less competitive with companies in other states and countries.
DB2
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They are then less competitive with companies in other states and countries.
That is an assumption that does not generally pan out.
If it is the garment trade sure you’d be right.
But look at Germany and Audi. The workers take five or six weeks off a year paid. Audi is a high end luxury product. The workers in Germany are known for working ultra hard and playing just as hard. Meanwhile American workers are tied down or laid off but have a so so reputation at times. Mainly because denying them is just wrong.
I get you have straight line bit of math you are working with…paid x per hour for y number of hours means…again in the garment trade okay. In high end products that actually matter to an economy just not true.
I do not know if you are in CA but the state is highly advanced. Holding back over attitudes from poorer states is not on. States need to play catch up with CA.
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I get you have straight line bit of math you are working with…paid x per hour for y number of hours means…again in the garment trade okay. In high end products that actually matter to an economy just not true.
Maybe. I suspect productivity improvements such as automation have eased a path to a shorter work week. In the service sector (and the US economy is mostly a service economy) I am not so sure. I suspect a local hospital in Pasadena (with more than 500 employees) is going to need 20% more nurses. Schools are mostly unionized so they would be exempt – for now.
DB2
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Interesting that unionized workforces or those with collective bargaining agreements are exempt from the new law. Not sure why.
Because wages and hours are negotiated, rather than imposed by management.
The Ford Rouge truck plant shifts run 4-10hr days/week, 6 days/week. That way, Ford can run the plant 6-20 hr days/week, with minimal to no OT.
Steve
2 Likes
DrBob2 analyzes,
But if the company will need to pay overtime to get everything done then their costs go up significantly. They are then less competitive with companies in other states and countries.
Perhaps. But if wage rate was everything, companies would be crowding into Mississippi so that they could take advantage of that sweet, poverty wage labor. We’ve been waiting for decades to see that happen.
intercst
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I suspect a local hospital in Pasadena (with more than 500 employees) is going to need 20% more nurses.
Or the hospital could welcome in a union and take advantage of the exemption to the 4-day week and OT after 32 hours.
intercst
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…companies would be crowding into Mississippi so that they could take advantage of that sweet, poverty wage labor.
The JCs bypassed Mississippi on their way to Mexico and China.
Of course, Mississippi’s 84% literacy rate, vs 95% in Mexico and 96% in China might have had something to do with it too.
Steve
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Interesting that unionized workforces or those with collective bargaining agreements are exempt from the new law. Not sure why.
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Because wages and hours are negotiated, rather than imposed by management.
But here they’re proposing regulation/limits by the state. The power of the California government could easily shape the allowed contours of negotiated settlements.
DB2
But if the company will need to pay overtime to get everything done then their costs go up significantly. They are then less competitive with companies in other states and countries.
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Perhaps. But if wage rate was everything, companies would be crowding into Mississippi so that they could take advantage of that sweet, poverty wage labor. We’ve been waiting for decades to see that happen.
Agreed that wage rates aren’t everything, but they are an important factor. Otherwise we wouldn’t see all those factories in Juarez.
Also note that auto industry production in the US has significantly shifted with the increases in lower wage states. When Tesla expanded they did so in Texas. When BWM built a plant in the US they chose South Carolina. Nissan has four manufacturing plants in the US, in Tennessee and Mississippi.
DB2
Also note that auto industry production in the US has significantly shifted with the increases in lower wage states. When Tesla expanded they did so in Texas. When BWM built a plant in the US they chose South Carolina. Nissan has four manufacturing plants in the US, in Tennessee and Mississippi.
Low wages, and an anti-union culture in southern states.
Toyota built a plant in Alabama some years ago. When they built their next plant, they chose a location in Canada. Toyota said that one of the factors that played in the decision was their experience with the labor force in Alabama, 85% literacy rate, vs Canada, about 99%.
Steve
The proposal, Assembly Bill 2932, would require any employer with more than 500 workers to shorten required hours and mandate overtime pay for any hours worked over 32.
https://timesofsandiego.com/opinion/2022/05/12/a-4-day-week-…
The Assembly Labor and Employment Committee declined to advance Assembly Bill 2932 by the April 29 deadline…
DB2