Technological advances in artificial intelligence, robotics and automation are often blamed for job losses, particularly in the manufacturing industries, where it seems humans are increasingly being replaced by machines. However, according to the Trades Union Congress (TUC), the increases in efficiency brought about by new technology should be used to improve the lives of employees through higher pay and reduced hours. We examine the potential benefits to employers of enabling their employees to work less.
Earlier this month, the TUC called for businesses to "share the wealth from new technology" with their employees. At the organisation's annual conference, Frances O'Grady, the TUC's general secretary, said: "Bosses and shareholders must not be allowed to sweep up all the gains from new tech for themselves. Working people deserve their fair share and that means using the gains from new tech to raise pay and allow more time with their families." Referring to previous campaigns which led to two-day weekends and shorter working hours, Ms O'Grady called for the introduction of a universal four-day working week by the end of the 21st century.
According to a recent TUC report, more than 1.4 million people in Britain work seven days a week and 3.3 million work more than 45 hours a week. Unsurprisingly, a TUC poll identified stress and long hours as workers' biggest concerns, after pay. Employers have a duty to take reasonable care of the health, safety and wellbeing of their employees, but this has not prevented British workers from having the third longest working hours in Europe (behind only Austria and Greece). Mental health charity, Mind, said poor work-life balance could lead to poor mental health in the workplace, which costs the UK economy up to £100 billion per year. Stress can also leave workers unable to concentrate and less motivated. In legal terms, stress causing "substantial and long-term adverse effect on the ability to carry out normal day-to-day activity" is considered a disability and as such can be used to bring a disability discrimination claim.
Reducing the number of hours employees are expected to work is likely to have a positive impact on their overall health and wellbeing, which in turn can lead to benefits for employers, such as higher morale and lower absenteeism. If employers welcome such incentives as four-day weeks and flexible working, they could also see a reduction in the number of discrimination claims related to stress.
A four-day working week could bring financial benefits for employers through increased productivity. Marketing agency, Pursuit Marketing, implemented a four-day working week in 2016. Operations Director, Lorraine Gray, said: "The culture in the workplace drives better results, better performance, a happier workforce, so our retention rates are really high and we can attract the best talent to our teams ... I don't ever foresee us moving back to a five-day week." As well as keeping its staff happy, the company is also benefiting financially, with turnover for 2018 predicted to be more than double that of last year.
Welsh company, IndyCube, provides shared workspaces and other services to support freelancers and the self-employed. Eighteen months ago it began to introduce a four-day week for its employees, without a pay cut. Company founder, Mark Hooper, says: "We felt we had an opportunity to prove something, that you can be as productive in four days as five, and it has been worth it." As well as having happier and more motivated employees, the company is now outputting more and expanding outside Wales.
If employers are encouraging employees to work four days and move to part-time working, they should be reminded of the protections part-time workers have in relation to the prevention of less favourable treatment, such as the pro rata approach to benefits and the receipt of the same rates of pay as full-time workers.
With new technology comes the ability to work remotely, wherever and whenever. This has led to an increase in flexible working and a way for employers to get the best out of their workforce. All employees with the requisite service (26 weeks' or more) have the right to request flexible working if the change relates to hours, times or place of work. Employers therefore must be up to speed with the statutory reasons for refusing the request and the need to deal with any request reasonably. As employees become more aware of the options open to them, employers may see the number of flexible working requests increase.
Although the assertion from trade unions is that new technology could reduce hours worked, new technology could also lead to extended hours for employees (for example, where they are responding to emails out of hours). However, employers should remain aware of the impact this will have on low-paid workers who need to be adequately compensated for the extra work. This could be a particular issue with low paid salaried employees, who are spending more hours working, but not getting remuneration for this work, which could result in their pay dropping below the National Minimum Wage.
Whilst employers should seek to embrace new technology and all the benefits that it brings, in getting the best out of a workforce and moving ahead in their industry, they should also be aware of the implications and rights four-day workers have. If the rise of the machines continues, employers need to ensure that their cognisant employees can continue to thrive alongside them.
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