Working time reduction: Employers’ perspectives and eco-social implications – ten cases from Hungary

Abstract

Working time reduction (WTR) refers to an increasingly popular group of eco-social policies, with various potential implications for social security and sustainable welfare depending on the details of implementation. Despite the growing number of international examples, WTRs constitute a countertrend in Hungary where the government aims to create a ‘work-based society’. In this context, we investigate whether and how companies launch WTRs, and study their effects. Our approach is comparative and explorative. We draw on interviews with managers of 10 companies to understand the motivations behind WTRs. In addition, we use 34 interviews and two focus groups conducted at four companies, considering impacts on employees’ workload and working conditions. We show that the drivers, mechanisms and impacts of WTRs differ by company size. There is far more diversity among smaller companies, where the attitudes of managers and personal relationships are decisive. Larger companies either choose low-risk WTRs that offer low gains, or target further growth and potentially cause a reduction of sectoral output while maximising profit. The latter may be the first example of profit-driven degrowth in the literature. Insights generated here can be useful to understand the potential reasons for, and barriers to, a more widespread adoption of WTRs, as well as the role of positive and negative impacts on workers in this process. We argue that this is important not only for social and economic outcomes, but also for the environment, since WTRs are necessary for a precautionary approach to sustainability. We highlight the limitations of current WTRs, in order to catalyse thinking about more radical variants.