Working Time and the Future of Work in Canada a Nova Scotia Gpi Case Study

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Working Time and the Future of Work in Canada a Nova Scotia Gpi Case Study M E A S U R I N G S U S T A I N A B L E D E V E L O P M E N T A P P L I C A T I O N O F T H E G E N U I N E P R O G R E S S I N D E X T O N O V A S C O T I A WORKING TIME AND THE FUTURE OF WORK IN CANADA A NOVA SCOTIA GPI CASE STUDY Prepared by: Linda Pannozzo BSc, BEd, BJ and Ronald Colman, Ph.D April, 2004 GENUINE PROGRESS INDEX 2 Measuring Sustainable Development ACKNOWLEDGEMENTS GPI Atlantic is grateful to Health Canada for providing funding support for research on major sections of this report as part of a research program on the health impacts of economic change. The author wishes to thank all those who directly helped with this report by providing detailed information upon request. This includes Anders Hayden, Juliet Schor, Andrew Harvey, Mike McCracken, Larry Haiven, Frank Reid, Andrew Heisz, Colin Dodds, and Laura Landon. Thanks also go out to Mary MacInnis, a Certified Accountant in Chester, Nova Scotia, who provided income tax simulations free of charge at her busiest time of year. The reviewers of this report, who generously offered their time, patience, and expertise were Anders Hayden, Andrew Harvey, Juliet Schor, Mike McCracken, Andrew Heisz, and Arthur Donner. Their help and input has been invaluable. During the research stage of this report the pioneering work of many individuals provided the inspiration needed to continue. These include Linda McQuaig, Juliet Schor, Anders Hayden, Frank Reid, Theodore Roszak, Simone Weil, Jim Stanford, Heather Menzies, and Barbara Ehrenreich. Their work and ideas were paramount in shaping and informing this study. The author would particularly like to acknowledge the work of the Advisory Group on Working Time and the Distribution of Work, headed by Arthur Donner, which provided strong evidence that work reduction and work hours redistribution can work in Canada and is worth trying. Many thanks also go to Laura Landon, Anne Monette and Bill Turpin, who helped with technical difficulties and the final proofreading and formatting of the report. Special thanks to Hans Messinger and Jacques Ouelette at Statistics Canada who helped provide GPI Atlantic with much needed data. Finally, the author wishes to express personal gratitude for the sounding board provided by her partner in life, Michael Oddy. He was also unofficial research assistant, gofer, newspaper clipper, and caffeine provider. Inspiration for the Nova Scotia Genuine Progress Index came from the ground-breaking work of Redefining Progress, which produced the first GPI in the United States in l995. Though GPI Atlantic's methods differ in many ways, we share with the original GPI the attempt to build a more comprehensive and accurate measure of wellbeing than can be provided by market statistics alone. Needless to say, any errors and all viewpoints and interpretations of the data are the sole responsibility of the authors and GPI Atlantic. GENUINE PROGRESS INDEX 3 Measuring Sustainable Development The GPI Work Hours Component has been reviewed in whole or in part by: Arthur Donner: Economic consultant, who chaired both the federal Advisory Group on Working Time and Distribution of Work, and the Ontario Government's Task Force on Hours of Work and Overtime. Andrew Harvey: Professor of Economics and Director of the Time Use Research Program at Saint Mary's University in Halifax, Nova Scotia. Anders Hayden: Author of Sharing the Work, Sparing the Planet. Work Time, Consumption and Ecology. Also the Policy Coordinator for 32 HOURS: Action for Full Employment, in Toronto, Ontario. Andrew Heisz: Senior Research Economist with Statistics Canada's Business and Labour Market Analysis Division. Also co-author of forthcoming Statistics Canada report on Annual Work Hours in Canada, and author of several Statistics Canada analytical papers. Mike McCracken: CEO of Ottawa-based Informetrica Limited, an economic research firm. Also business advisor to the Donner Commission. Juliet Schor: Author of The Overworked American: The Unexpected Decline of Leisure and The Overspent American: Upscaling, Downshifting and the New Consumer. Former director of women's studies at Harvard University and a nationally recognized social economist, author, educator, and researcher. Currently professor of sociology at Boston College in Massachusetts. GENUINE PROGRESS INDEX 4 Measuring Sustainable Development TABLE OF CONTENTS List of Tables.............................................................................................................................. 8 List of Figures .......................................................................................................................... 10 Executive Summary.................................................................................................................. 13 Definitions................................................................................................................................ 60 Foreword .............................................................................................................................67 Introduction .......................................................................................................................73 Part One - Work Hours & The Changing Nature of Work Chapter 1. Introduction ................................................................................................78 Chapter 2. Work Hours – an Historical Perspective........................................86 Chapter 3. Trends in Work Hours.............................................................................94 3.1 Reduction, Stabilization, Polarization. ...............................................................94 3.2 Hours Polarization: The Long and Short of it....................................................99 3.2.1 Polarization and Three 'Labour Market Phenomena'................................ 111 3.3 Overtime and the Long Hours Culture ............................................................. 118 3.3.1 Trends..................................................................................................... 118 3.3.2 Reasons for Overtime.............................................................................. 127 3.4 Total Work Hours............................................................................................ 137 3.4.1 Unpaid Work .......................................................................................... 137 3.4.2 The Rise of the Dual-Earner Family........................................................ 138 3.4.3 Family Work Effort and Earnings ........................................................... 145 3.5 Moonlighting................................................................................................... 149 3.6 Self-employment ............................................................................................. 154 3.7 Productivity and Wellbeing ............................................................................. 159 3.7.1 The "Productivity Dividend"................................................................... 164 3.7.2 "Productivity Offsets" ............................................................................. 166 Chapter 4. Contingent Work, 'Junk Jobs' and 'Post-it-note-people'....... 169 4.1 The Rise of the Part-time Job........................................................................... 170 4.1.1 Underemployment or Involuntary Part-time ............................................ 175 4.1.2 Characteristics of Part-time Work ........................................................... 179 4.2 Temporary Work ............................................................................................. 181 4.3 Shift work and the New Economy.................................................................... 185 4.4 The Global Assembly Line .............................................................................. 187 4.5 Working for the Computer............................................................................... 192 GENUINE PROGRESS INDEX 5 Measuring Sustainable Development Chapter 5. The Collapse of Work: Unemployment........................................ 195 5.1 Trends ............................................................................................................. 196 5.2 "Hidden" Unemployed..................................................................................... 200 5.3 Duration of Unemployment ............................................................................. 207 5.4 Skill Mismatches and Structural Unemployment.............................................. 209 5.5 'Under the Table' Economy.............................................................................. 210 5.6 EI benefits and Rising Insecurity ..................................................................... 211 5.7 Causes of Unemployment ................................................................................ 213 5.7.1 Globalization .......................................................................................... 213 5.7.2 Deflationary Policies............................................................................... 213 5.7.3. Technology............................................................................................ 215 Part Two - Costs of Overwork & Underwork Chapter 6. Introduction .............................................................................................. 218 Chapter 7. Costs of Work Stress and the Long Hours Culture................. 220 7.1 Causes of Work Stress
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