Japan's Four-Day Workweek Experiment 'Speed'... Will Monday to Thursday and Sunday Success? [Jjinbit]

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan's experiment with a four-day workweek is gaining momentum this year, primarily among major manufacturing companies such as Panasonic and Hitachi. Facing long-term challenges like low birth rates and an aging population, Japan is exploring the four-day workweek as a solution to boost productivity amid the expanding demand for flexible work arrangements and a shift toward performance-oriented corporate culture that began during the COVID-19 pandemic.

According to the Nihon Keizai Shimbun on the 12th, Hitachi plans to introduce a system during the 2022 fiscal year (April 2022 to March 2023) that allows flexible adjustment of monthly working hours for approximately 15,000 employees at its headquarters. The key feature is removing the minimum working hours limit set at 3 hours and 45 minutes per day and allowing employees to choose their working days. The total working hours will be maintained at the current level to ensure no change in salary, but employees will be able to adjust their hours to enable a four-day workweek.

For example, employees could increase their working hours from the current 7 hours and 45 minutes to 9 to 10 hours from Monday to Thursday and take Friday off. This would allow them to effectively implement a four-day workweek. Since working hours are calculated monthly, it is also possible to work more hours earlier in the month and take extended breaks at the end of the month, according to Nihon Keizai.

Japan's four-day workweek experiments have accelerated since the COVID-19 pandemic. The Japan Business Federation (Keidanren) issued guidelines in 2020 recommending telecommuting, staggered commuting, and four-day workweeks to prevent the spread of COVID-19. In April last year, Japan's ruling Liberal Democratic Party officially promoted the four-day workweek, and in July of the same year, the Basic Policy on Economic and Fiscal Management explicitly encouraged its adoption.

The four-day workweek has mainly been adopted by small and medium-sized enterprises, but in January, Panasonic, a major Japanese manufacturing company, announced plans to introduce a four-day workweek after transitioning to a holding company structure in April, in consultation with its subsidiaries and labor unions. Japanese telecommunications equipment company NEC also plans to introduce a four-day workweek for 20,000 headquarters employees this year and gradually expand it to group companies. NEC is considering reducing salaries if working hours decrease.

Additionally, Shionogi Pharmaceutical and Mizuho Financial Group have introduced four-day workweeks for volunteers, and Fast Retailing, which operates the fashion brand Uniqlo, plans to implement a four-day workweek for full-time employees limited to specific work locations while maintaining their salary levels.

Japan's active experimentation with the four-day workweek is interpreted as an effort to improve quality of life and thereby increase productivity. With the advancement of IT and the shift toward service and knowledge-intensive industries, working hours no longer directly correlate with performance. Furthermore, the aim is to attract talented individuals seeking flexible work and boost employees' motivation to enhance productivity. Nihon Keizai stated, "Companies are required to provide employees with time flexibility and establish performance-based evaluation systems," adding that "the four-day workweek is one of the work styles emphasizing performance."

The Japanese government also views the four-day workweek as a potential solution to address low birth rates and aging population issues. Increasing holidays through flexible work arrangements could facilitate childcare and medical treatment, thereby helping to resolve social problems.

(Source = Pixabay)

If Japan's four-day workweek experiments take root, it would mark a significant change in the work environment for the first time in over 30 years since the 1987 revision of the Labor Standards Act introduced the five-day workweek. At that time, Japan adopted the five-day workweek to improve the long working hours environment by reducing the statutory working hours from 48 to 40 hours per week.

However, the success or failure of the four-day workweek will likely hinge on wages. If salary reductions accompany the implementation of a four-day workweek, practical concerns will inevitably arise. A Japanese public opinion survey found that 78% of respondents would not want a four-day workweek if their income decreased due to fewer working days. Conversely, 77% said they would adopt a four-day workweek if there were no changes in working hours or income.

Experiments with the four-day workweek have been ongoing worldwide for several years. Iceland, led by the government and local authorities, introduced a four-day workweek from 2015 to 2021 and confirmed that productivity improvements and service quality maintenance were possible. Belgium is also considering institutionalizing the four-day workweek. The United Arab Emirates (UAE) introduced a 4.5-day workweek at the national level starting in January this year, designating Friday afternoon through Sunday as holidays.