Ardern floats four-day week for New Zealand
Prime minister considering ‘extraordinary ideas’ after country’s crisis measures hailed around the world
NEW ZEALAND is considering introducing a four-day working week to help boost domestic tourism, productivity and employment after the pandemic battered the country’s economy.
Yesterday, Jacinda Ardern, the prime minister, flagged the idea of using the shorter working week and additional public holidays as part of a “nimble” and creative approach to resuscitating the economy.
New Zealand’s strict seven-week lockdown has been praised around the world for stopping the spread of Covid-19 in its tracks, with the nation of five million people now having 35 active cases and just one coronavirus patient in hospital. New Zealand has had 1,153 Covid-19 cases and 21 deaths.
But strict travel bans have meant tourism and hospitality, sectors that play a vital role in the New Zealand economy, have been hard hit.
“This is an extraordinary time and we should be willing to consider extraordinary ideas,” Ms Ardern said. “I haven’t ruled anything in or out.”
She added that the government should be open minded about the “range of options” available.
Between March 2018 and March 2019, tourism generated NZ$16.2 billion (£8billion), 5.8 per cent of the country’s GDP. Indirect value added by industries supporting tourism generated an extra Nz$11.2billion.
Representatives of the industry, which prior to the crisis employed about 230,000 people, met with Ms Ardern on Tuesday.
New Zealand launched an ambitious plan to “eliminate” coronavirus using an early and aggressive lockdown and travel bans. As early as April 27, the prime minister claimed her country had “won the battle” after four weeks of heavy restrictions. “There is no widespread undetected community transmission,” she said. “We have won that battle. But we must remain vigilant if we are to keep it that way.”
On May 11, the country reopened schools and offices, with restaurants and cafés following. Strict social distancing measures in cafés meant even Ms Ardern was turned away from dining only to be chased down the road by the owner and offered a seat when one became safely available.
International borders remain closed but with New Zealanders now free to travel within the country, tourism operators and airlines are ramping up services to meet rapidly growing demand.
A three-day weekend and extra holidays could provide a significant boost to business.
In 2018, a New Zealand company that moved to a four-day week, while retaining five-day pay, for a two-month trial found the change boosted productivity among its 240 employees.
The firm, Perpetual Guardian, which manages trusts, wills and estates, found staff spending more time with their families, exercising, cooking and gardening, returned to work enthusiastic and energetic. Workers said the change motivated them to use new ways to increase productivity while in the office, including reducing meeting times from two hours to 30 minutes.
In August 2019, Microsoft Japan tested a four-day week and saw productivity rise by about 40 per cent. There was a 23 per cent reduction in electricity use and a 59 per cent decrease in the number of pages printed.