Working Hour Reduction by Maintanance of Employment and Job Creation in Germany

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1 Working Hour Reduction by Maintanance of Employment and Job Creation in Germany Thomas Haipeter KCTU FES International Conference Seoul, South Korea 2012

2 Levels of Working Time Regulation in Germany Working Time Law Daily working times: 8 hours (up to bis 10 hours) Weekly working times: 48 hours (up to 60 hours) Compensation period: 6 months Collective Bargaining Agreements Weekly working times Compensation periods Definition of normal working time and overtime work Local working time reduction (Safeguarding of Jobs) Local derogations by extension of working time Holidays Local Plant Level Agreements Shift systems Working time accounts (Flexitime to lifelong accounts) Collective working time reduction Collective working time extension 2

3 Development of Working Time Reduction 1956 Union campaign Five Days Week Eight Hours Day reduction 48 to 45 hours metalworking industry / 40 hours week tobacco industry 1959 Five days week in several industries hours week in severel industries (printing, metalworking, chemical, retail, banking, public services ) 1978 Union campaign 35 hours week first strikes in steel industry 30 days holiday 1984 Strikes and first step of working time reduction to 38.5 hours/week in metalworking in printing later in other industries early retirement schemes in the chemical industry ( lifelong working time reduction ) 1987 Second step of working time reduction in metalworking and printing to 37.5 hours from free days to reduction of weekly working times 1990 Agreement on 35 hours week metalworking and printing two further stept until 1995 other industries 37.5 to 39 hours End of general working time reduction by collective bargaining agreements (for the time being) 3

4 Further Developments of Working Time Regulation hours week at Volkswagen: Alliance for work 1994 Working time corridor chemical industry: 37.5 hours +/- 2.5 hours 1995 Collective bargaining agreement on alliance for work metalworking industry: option for working time reduction 30 hours 2004 Pforzheim Agreement metalworking industry: dreogations from collective bargaining agreement working time extension up to 40 hours Working time extension 39 to 40 hours in the ccnstruction industry 2005 Working time Extension in the public services (41 hours public officers, 39 to 40 hours public services) 2009 Collective working time reduction in plants extension of short time work PD Dr. Thomas Haipeter

5 Further developments of working time regulation Differentiation of Working Times Flexibilisation of Working Times Quotas for high qualified workers (metalworking) Compensation periods for fluctuations of regular working times in collective bargaining agreements on wtr Extension of compensation periods (three months to one year and more) Working time accounts Early retirement Lifelong working time accounts Retirement Qualification Work life balance Differentiation of working time accounts: Flexitime accounts Accounts for safeguarding of jobs Lifelong working time accounts 5

6 Working Time Accounts Spread of Working Time Accounts (ISO/IAB) PD Dr. Thomas Haipeter

7 Working Time Reduction and Flexibility The Case of VW 1993 Working time reduction 20% 1995 Working time flexibilisation (Breathing Factory) Working time accounts compensation period one year Working Time up to 9.5 hours day / 10 hours more per week No overtime premium up to 35 hours Several Saturdays at disposition of company Reduction of overtime premium 30% Priority of Compensation in Time 2006 Working Time Extension and Flexibilisation 33 Hours/week blue collar workers (corridor hours); 34 Hours/week white collar workers (corridor hours); 35 Hours/week new workers 40 Hours temporary in projects quota 5% Stoppages can be re-worked (approved by the works councils) 10 hours overtime work week / 20 hours month No overtime premium up to 40 hours Individual working time accounts +/- 400 hours negotiations 350 hours No compensation period up to 400 hours / 12 months for savings above 400 hours Transfer of up to 100 hours/year on a lifelong account 7

8 TRENDS OF ACTUAL WORKING TIMES PD Dr. Thomas Haipeter

9 Arbeitszeiten in Deutschland im Zeitverlauf (Vollzeit) 42 durchschnittliche Wochenarbeitszeit West (tats? hl.) West (tarifl.*) Ost (tats? hl.) Ost (tarifl.*) Jahr PD Dr. Thomas Haipeter 2012 * Stunden pro Woche, Durchschnitt aller tariflich erfassten Arbeitnehmer/innen Quelle: Mikrozensus / Eigene Berechnungen IAQ; WSI-Tarifarchiv 9

10 Distrubution of Working Times (hour brackets) - Development Verteilung der gewöhnlichen Arbeitszeiten (nach Stundenintervallen), abhängig Beschäftigte, Deutschland Quelle: ELFS / Eigene Berechnungen IAQ PD Dr. Thomas Haipeter

11 Distribution of Working Times (hour brackets) Economy and Metalworking Sector 45 Gewöhnliche Wochenarbeitszeit in Deutschland 2010, Gesamtwirtschaft und Metall- und Elektroindustrie im Vergleich Anteil abhängig Beschäftigter (%) Gewöhnliche Wochenarbeitszeit (Std.) Gesamtwirtschaft M+E Quelle: Europäische Arbeitskräftestichprobe / Auswertung IAQ PD Dr. Thomas Haipeter

12 Actual Working Times, , Industries Gewöhnliche Arbeitszeiten pro Woche, abhängig in Vollzeit Beschäftigte, Deutschland Quelle: ELFS / Eigene Berechnungen IAQ PD Dr. Thomas Haipeter

13 Before the Crisis: Working Time Extension Reduced Employment Creation (M&E-Industrie, Deutschland, ) PD Dr. Thomas Haipeter 2012 Beschäftigte in (ohne Leiharbeit); gewöhnliche Wochenarbeitszeit von abhängig in Vollzeit Beschäftigten Quellen: Gesamtmetall (Beschäftigte); Mikrozensus / Eigene Berechnungen IAQ (Arbeitszeit); BA (Leiharbeit) (eigene Schätzung) 13

14 2nd Part WORKING TIME REDUCTION IN CRISIS PD Dr. Thomas Haipeter

15 Sagefuarding of Jobs in the Plants (Works Councils Survey 2009) Fringe Benefits 4 8 Weekly Working Times 8 14 Wage Cuts Taking Holiday Manufacturing Economy Internal Transfer Personnel Short Time Work Working Time Accounts

16 PD Dr. Thomas Haipeter

17 Factors of employment (Herzog-Stein/Seifert 2010) Real GNP Labour Productivity Trend Deviation LP Trend Working Time Total

18 Actual Working Hours per Week full-time employees, German metal ind. / all sectors (q1/2008 q1/2011) M+E all sectors Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Source: European Labour Force Survey / IAQ PD Dr. Thomas Haipeter

19 3rd Part QUALIFICATION AND GENDER PD Dr. Thomas Haipeter

20 Gewöhnliche Wochenarbeitszeit (Std.) Gewöhnliche Wochenarbeitszeit abhängig Vollzeitbeschäftigter nach Qualifikationsniveau, Gesamtwirtschaft, 2000/ Niedrig Mittel Hoch Quelle: Europäische Arbeitskräftestichprobe / Auswertung IAQ

21 Gender gap of Working Times (2008) Durchschnittliche gewöhnliche Wochenarbeitszeiten (in Std.), VZ/TZ, abhängig Beschäftigte; Auswahl der EU-Länder nach Rangfolge Quelle: ELFS / Eigene Berechnungen IAQ PD Dr. Thomas Haipeter

22 Weekly Working Times of Women with Children (0-6 Years), 2008 Durchschnittliche gewöhnliche Wochenarbeitszeiten (in Std.), abhängig Beschäftigte Quelle: ELFS / Eigene Berechnungen IAQ PD Dr. Thomas Haipeter

23 Working Time Distribution, Women (Germany / Sweden) Verteilung der Arbeitszeiten (nach Stundenintervallen), abhängig Beschäftigte, 1995 und 2008 Quelle: ELFS / Eigene Berechnungen IAQ PD Dr. Thomas Haipeter