Workers are already negotiating with their employers on a case by case basis to shorting working hours.
We propose a short time working scheme similar to that used in Germany. It has helped keep unemployment there lower than it would have been and the government has guaranteed to pay workers on the scheme up to two thirds of their lost net earnings.
This is a universal scheme available to all employees who have had their wages cut by more than 10%, no matter what their original income. It therefore incentivises everyone including between the employer and its employees.
The government covers half of the employer’s social insurance contributions and all of the contributions which relate to the payment of short time work allowances. These costs are lower than unemployment benefit.
We also propose that the government offers financial incentives for participating employers to subsidise training costs, similar to the Welsh ProAct scheme.
This forms part of our wider call for the 48 hour working week to be implemented in full immediately and not delayed any longer.
Want to get involved in our campaign on youth unemployment All Doled Up. What will you pledge?
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