Mar 19, 2018

Israelis to work less as of April

Minister of Labor, Welfare and Social Services Chaim Katz has approved a new labor directive shortening the work week to 42 hours and the work month by four hours from 186 hours down to 182 hours. This comes as a result of agreements with the Labor Union in a attempt to bring Israel's workforce more in line with OECD standards.

The new work hours will go into effect in April 2018.

Workers salaries will not be lowered as a result of the change in hours, meaning the salary rate per hour is going up a little bit.
source: Globes

I am in favor of lessening the load of workers in Israel. Employees tend to be overworked and underpaid. What I am curious about is how this will effect employment. Meaning, if employers now have to essentially pay more money, as for the same monthly salaries they are paying out they are getting less work hours in return, will they fire employees to save money? Will they move more to automation?

Also, this might work well for people who already have jobs and are now cutting four hours out of their month and keeping the same salary. Will new employees be offered lower salaries because the same job is for less hours than it used to be?

Also, while this may work well in the unionized jobs, will this be enforced in the private sector?

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1 comment:

  1. Employees that produce something, whether software or manufactured goods, will be about as productive. There's lots of research that shows productivity does not scale to hours worked, and that 8 hours is usually past the point of diminishing returns. A greater number of hours off will allow employees a better quality of life, and will make their remaining hours more productive.


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