In Greece, new rules will take effect on July 1 allowing certain companies to switch to a six-day workweek.
Emmanouil Savoidakis from Politis & Partners, a law firm in Athens, explains that specific industries can now operate for six days, increasing the typical 40-hour workweek to 48 hours. Workers have the option to work more hours for additional pay.
The Greek government suggests the new regulations will streamline processes, shorten probation periods to six months, and regulate overtime.
The aim is to address labor shortages by reducing informal work and offering perks like free training to aid workers in adapting to changing market needs. Savoidakis highlights that the six-day workweek is limited to specific sectors.
Could this approach set a precedent for other nations?
Adjusting Hours in the Office
Greece grapples with challenges like low pay, high joblessness, and a declining populace, but it isn’t alone. Yet, the move to extend workdays deviates from many European peers.
Countries like Germany, Belgium, France, the UK, Spain, and Iceland have explored alternative workweek setups, such as compressing 40 hours into four intense 10-hour days or completing all work in 80% of the time while maintaining full salaries.
In Germany earlier this year, Deutsche Bahn and the train union agreed to transition from a 38-hour to a 35-hour workweek. Similar demands are arising in other sectors.
Greek Economic Progress
Greece is taking a distinct path. In past crises, lenders had urged more work hours, although the shift didn’t occur.
Presently, Greece’s economy is rebounding, with projected GDP growth exceeding the eurozone average. Despite positive forecasts, many educated Greeks have left the nation seeking better prospects overseas, exacerbating skill shortages in various sectors.
Additionally, Greeks already have long work hours, exceeding those in the UK, US, and Germany, as per OECD data.
Addressing Greek Realities
On a positive note, the minimum white-collar wage increased, and plans exist to raise the average wage. However, these increments fail to offset prior wage cuts and high inflation, leading some to juggle multiple jobs to make ends meet.
Recent regulations align legal frameworks with existing work practices in Greece, where many already exceed standard workweeks.
Extending work hours may result in higher taxes and social security deductions, potentially nullifying wage gains, experts caution.
Focus on Structural Changes
Beyond immediate gains, the new rules grant employers significant flexibility. Workers could negotiate against additional work hours, although limited union representation might sway decisions in favor of employers.
While some companies express interest in the six-day workweek for operational benefits, experts stress that the strategy is short-sighted. To tackle broader economic challenges, Greece must implement structural reforms aligning opportunities, salaries, and career prospects.
In essence, Greece’s journey toward economic parity with European peers necessitates more profound changes and equitable incentives rather than prolonged work hours.
Edited by: Ashutosh Pandey
Editor’s note: This article was originally published on June 22, 2024.
