Workday Reduction, Another Measure by Sumar and Comuns Heading for Failure

The Council of Ministers approved the draft bill for reducing the workday this Tuesday. The law will now have to continue its journey, and it is not expected to reach the Congress of Deputies before the summer. But it has already served for leaders of Sumar and En Comú to take credit and thus halt their electoral decline.

Yolanda Díaz has said that "it is a public health measure, democratic because it distributes productivity, feminist and fights against climate change".

Deputy Aina Vidal has said that "the reduction of the workday to 37.5 hours will positively affect 12.5 million workers". She has celebrated that "we are getting closer to this achievement".

Jéssica Albiach has said that what Catalans want is "to earn better and work less". The Comuns have adopted the slogan "work less, live better".

The reduction of the workday is the flagship measure with which Sumar wants to leave its mark in this legislature. They included it in their electoral program, with the idea that working fewer hours increases productivity, favors family reconciliation, and pollutes less.

However, experts and what has happened in other countries warn of the negative consequences of reducing the workday through imposition. The reduction of the workday is heading toward another disaster, like the failure of the Comuns' housing policies in Barcelona.

Drop in productivity and businesses at risk

What has been observed in other countries like France, Belgium, or Portugal is that reducing the workday by decree causes a drop in productivity. In these cases, from 1.5 to 3.5 points. This would be a blow to the Spanish economy, which has been struggling for years to improve competitiveness indices.

It must be said that the drop in productivity in these countries is due to several factors and can't be attributed solely to the reduction of the workday. But studies also indicate that the measure has worked when done through negotiations or agreements. In contrast, regulation, imposition by decree law, is a clear disincentive.

There are two things that are particularly concerning regarding the reduction of the workday in Spain.

One is the negative effect it will have on small and medium-sized businesses, many of which could be forced to close. In the best-case scenario, many self-employed individuals will have to work more hours (estimated at an average of 53 hours per week) to keep the business afloat.

The other is that the greatest drop in productivity will occur in the tertiary sector, especially in hospitality. In this type of business, productivity is closely linked to hours worked. This is very concerning, due to the harm it would cause to an economy mainly supported by this sector.

The failure of magic solutions

The introduction of this measure in an economy with evident weaknesses could lead to a loss of jobs. Especially if it is not joined by tax incentives.

Where the reduction of the workday has been done through agreements and considering the particularities of each company or sector, the measure has been successful. But when it has been attempted to impose, it has caused greater harm. This again questions the regulatory obsession of the left, which has led to disasters like that of housing.

By intervening invasively in the market, distortions are caused that often bring more problems than solutions. Barcelona was the experimental laboratory for Podemos's housing policies, and the result was catastrophic. After eight years of government, it is one of the places where housing prices have risen the most.

Additionally, Sumar and Comuns are once again presenting a magic solution that aims to solve all problems. They want to raise wages, reduce the workday, increase taxes, and improve employment. But everything can't be achieved.

Raising the minimum wage for workers only to take away double with more taxes results in a loss of purchasing power for the vast majority. Wanting to reduce the workday without losing jobs or affecting the economy also seems like a fantasy.