Is the Six-Day Workweek Coming to North America? Lessons from Greece's Controversial Labor Reform

As Greece implements a controversial law extending the workweek to six days for certain industries, North American employers and policymakers may soon face similar questions about how to address labor shortages and economic pressures. The new Greek legislation, which applies to select industrial and manufacturing facilities as well as businesses offering 24/7 services, allows for a 48-hour workweek with provisions for additional pay. This development comes at a time when much of the world is moving towards shorter workweeks, raising questions about the future of labor practices in the United States and Canada.

The Greek Context: Addressing Labor Shortages and Unpaid Overtime

Greece's new law, which exempts food service and tourism workers, allows employees working on a sixth day to receive 40% extra pay, or an additional 115% if they work on Sundays. Alternatively, employees may extend their regular workday by two hours instead of working a sixth day. The law also permits workers to voluntarily take on a second job for up to five hours a day, in addition to their full-time roles.

Greek Prime Minister Kyriakos Mitsotakis has justified the legislation as a necessary response to the country's shrinking population and a shortage of skilled workers. Additionally, the law aims to address the pervasive issues of unpaid overtime and undeclared work in Greece, aligning the country more closely with labor practices in other parts of Europe, according to the government.

A Controversial Move in a Time of Global Labor Reform

The new law in Greece has sparked significant controversy, particularly among unions and labor rights advocates who see it as a step backward. Critics argue that the legislation undermines workers' rights and sets a dangerous precedent by giving employers excessive control over labor conditions. At a time when countries like Belgium are moving towards shorter workweeks as part of post-pandemic labor reforms, Greece's decision to extend the workweek seems out of step with global trends.

Could This Happen in North America?

While Greece's labor market is facing unique challenges, the underlying issues—labor shortages, economic pressures, and the need for greater workforce flexibility—are not unique to Greece. North America, particularly in sectors like manufacturing, healthcare, and logistics, is grappling with similar challenges. The question is whether the U.S. and Canada might consider similar measures to address these issues.

In recent years, the conversation in North America has leaned towards improving work-life balance, with many companies experimenting with four-day workweeks or flexible schedules. However, as labor shortages persist and economic pressures mount, some industries might explore extending workweeks or increasing working hours as potential solutions. This could be particularly relevant in sectors where 24/7 operations are critical, such as healthcare, transportation, and emergency services.

The Impact of Workforce Demographics: A Case Study in Healthcare

A relevant example of how demographic shifts can influence labor supply can be seen in the healthcare sector. Over the past few decades, there has been a significant increase in the number of female medical school graduates. The figure below shows the historical trend of medical school graduates by sex from the academic years 1980-1981 through 2018-2019. In 1980-1981, only 24.9% of graduates were female; by 2018-2019, that number had risen to 47.9%. While this trend is a positive step towards gender parity, it also introduces new challenges to the labor supply in healthcare.

As older male doctors retire and a new generation of female doctors steps in, considerations like maternity leave become increasingly significant. Additionally, this younger generation of doctors is less inclined to work the demanding 60-70 hour weeks that were once common. Given that societal expectations often place the majority of parenting responsibilities on women, female doctors with children may find it challenging to commit to long, inflexible hours. While the strides made toward gender equality in the medical field are undeniably positive, it’s important to recognize the implications of these changes on the healthcare workforce.

The rise in female doctors, while a step forward in many respects, may impact the overall supply of medical professionals, particularly as fewer doctors are willing or able to maintain the same intensive schedules. One potential solution is to increase the number of medical school graduates. However, with declining birth rates, expanding the pool of future doctors may not be a feasible long-term strategy. In a sector already grappling with labor shortages, such as healthcare, these shifts could exacerbate existing challenges, especially in critical areas like emergency rooms and intensive care units where continuous staffing is essential.

The Risks and Considerations

If North American employers were to consider similar legislation to that of Greece, they would need to weigh the potential benefits against significant risks. Extended workweeks could exacerbate burnout, reduce productivity, and increase turnover, especially in an environment where employee well-being is increasingly prioritized. Additionally, any move towards longer workweeks would likely face strong opposition from unions and labor advocates, much like in Greece.

Moreover, North American labor laws, particularly in Canada, have strong protections for workers that may make such reforms difficult to implement. Employers would also need to consider the potential impact on their reputation and employee morale in a competitive labor market.

Preparing for the Future

While it’s unclear whether North America will follow Greece's lead, the situation highlights the need for proactive workforce planning. Employers should consider a range of strategies to address labor shortages, including investment in automation, upskilling programs, and flexible working arrangements. Policymakers, too, must balance economic growth with the protection of workers' rights and well-being.

In conclusion, while Greece's new labor law may seem distant from North America's current trajectory, it serves as a reminder that labor markets are in constant flux. As economic and demographic pressures evolve, so too will the strategies used to manage the workforce. Whether through extended workweeks or other means, the future of work will require careful consideration of both business needs and employee welfare.