EMPLOYMENT RELATIONS RESEARCH SERIES NO.16 Working long hours: a review of the evidence. Volume 1 — Main report J. KODZ et al. THE INSITUTE FOR EMPLOYMENT STUDIES Published in November 2003 by the Department of Trade and Industry. URN 03/1228 ISBN 0 85605 363 5 © Crown Copyright 2003 This and other DTI publications can be ordered at: www.dti.gov.uk/publications Click the ‘Browse’ button, then select ‘Employment Relations Research Series’. 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Acknowledgements The full project team and their affiliations are as follows: Jenny Kodz, Sara Davis, David Lain, Marie Strebler, Jo Rick, Peter Bates, John Cummings and Nigel Meager (IES); Dominique Anxo (Centre for European Labour Market Studies, Göteborg); Sandrine Gineste (Quat’alyse, Paris); Rainer Trinczek and Susanne Pamer (Technische Universität, München). 1 The Institute for Employment Studies The Institute for Employment Studies is an independent, apolitical, international centre of research and consultancy in human resource issues. It works closely with employers in the manufacturing, service and public sectors, government departments, agencies, professional and employee bodies, and foundations. For over 30 years the Institute has been a focus of knowledge and practical experience in employment and training policy, the operation of labour markets and human resource planning and development. IES is a not-for-profit organisation which has a multidisciplinary staff of over 50. IES expertise is available to all organisations through research, consultancy, publications and the Internet. IES aims to help bring about sustainable improvements in employment policy and human resource management. IES achieves this by increasing the understanding and improving the practice of key decision makers in policy bodies and employing organisations. 2 Foreword The Department of Trade and Industry's aim is to realise prosperity for all. We want a dynamic labour market that provides full employment, flexibility and choice. We want to create workplaces of high productivity and skill, where people can flourish and maintain a healthy work-life balance. The Department has an ongoing research programme on employment relations and labour market issues, managed by the Employment Market Analysis and Research branch (EMAR). 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Grant Fitzner Director, Employment Market Analysis and Research 3 Contents Acknowledgements 1 The Institute for Employment Studies 2 Forward 3 Contents 4 Executive Summary 10 Background 10 Methodology 10 Caveats 11 What are long hours? 11 Who works long hours? 11 Are things getting better? 12 Reasons given for long hours working 12 The international context 14 EU member states 14 Selected non-European developed economies (USA, Australia and Japan) 14 Reasons for international differences 15 Employee satisfaction with long hours 15 Impact of long hours on employers and employees 16 Employment and productivity 16 Work performance 16 Health and safety 16 Motivation, absence and turnover 16 Health 17 Work-life balance 17 Are women more likely to be disadvantaged by long hours working? 17 Perceived benefits of long hours working 18 Conclusions 18 1. Background to the Study 19 1.1 Aims and objectives 19 1.2 Methodology 19 1.2.1 The literature review 19 1.2.2 Secondary data analysis 19 1.2.3 The case studies 22 1.3 The Working Time Regulations 23 1.4 Focus and outline of the report 23 1.4.1 Outline of the report 24 2. Measurement and Meaning of Long Working Hours 26 2.1 Annual and weekly working hours 26 2.2 Basic, usual, actual and total working hours 27 2.3 Travel to work, working off-site and ‘working’ breaks 27 2.4 Who reports? 24 4 2.5 Recall or record 28 2.6 Main job and other jobs 28 2.7 Which survey? 29 2.8 Economic cycle 29 2.9 Part-time hours 29 2.10 What are long hours? 29 2.11 Conclusions 31 3. Working Long Hours in the UK 32 3.1 Working long hours — evidence from the Workplace Employee Relations Survey, 1998 32 3.1.1 Who works long hours? 33 3.1.2 Multi-variate analysis 40 3.1.3 Conclusions from the WERS data 42 3.2 Working long hours — evidence from previous research 42 3.2.1 Trends and cycles 42 3.2.2. Gender differences 44 3.2.3 Age differences 45 3.2.4 Household characteristics 45 3.2.5 Industrial Sector differences 48 3.2.6 Occupational differences 48 3.2.7 Ethnicity 50 3.2.8 Regional differences 51 3.3 Evidence from the case studies 51 3.3.1 Working hours in organisations employing mainly manual employees 52 3.3.2 Working hours in orga nisations employing mainly non-manual employees 55 3.4 Conclusions 59 4. Reasons for Working Long Hours 61 4.1 Reasons for working long hours — previous research 61 4.1.1 Regulatory and institutional framework 61 4.1.2 Collective and workforce agreements 62 4.1.3 Wages and promotion 63 4.1.4 Workload 64 4.1.5 ‘Culture’: influence of managers and colleagues 66 4.1.6 Job insecurity 67 4.1.7 Working hours preferences 68 4.1.8 Commitment to work 68 4.2 Evidence from the Workplace Employee Relations Survey, 1998 70 4.2.1 Attitudes towards work 72 4.2.2 Influence over job 74 4.3 Evidence from the UK case studies 76 4.3.1 Manual employees 76 4.3.2 Non-manual employees 77 4.4 Conclusions 80 5 5. International Comparisons: Findings from the European Community Labour Force Survey 82 5.1 Overview 83 5.2 Occupations 88 5.3 Industrial sector 93 5.4 Age 97 5.5 Changes over time 99 5.6 Conclusions 100 6. International Comparisons: Findings from the Literature and Case Studies 102 6.1 Working hours in the USA, Australia, Japan and Europe 102 6.1.1 Working hours in the USA 102 6.1.2 Working hours in Australia 107 6.1.3 Working hours in Japan 109 6.1.4 Working hours in European countries: findings from the literature 110 6.1.5 Summary conclusions 112 6.2 Reasons for levels of long hours working 114 6.2.1 Preferences and economic considerations 114 6.2.2 Regulation and legislation 121 6.2.3 Regulation: collective bargaining agreements and the role of trade unions 126 6.3 Evidence from the case studies 132 6.3.1 Legislative and institutional context of the case study countries 133 6.3.2 Manual employees: European comparisons 138 6.3.3 Non-manual employees: European comparisons 141 6.4 Conclusions 145 7. The Implications of Long Working Hours for Employers 147 7.1 Effects on productivity 147 7.1.1 Long hours and productivity 148 7.2 Effects of reducing working hours 150 7.2.1 Methodological issues 150 7.2.2 Case study evidence in the literature 151 7.2.3 Economic modelling 157 7.2.4 Other determinants of productivity 159 7.2.5 Conclusions 159 7.3 Individual performance and error-making 160 7.3.1 Error-making among hospital doctors 161 7.3.2 Social behaviour of hospital doctors 164 7.3.3 Impact of long hours on performance in other occupations 165 7.3.4 Conclusions 166 7.4 Safety and accidents 166 7.4.1 Medical professionals 167 7.4.2 Long distance drivers 168 7.4.3 Employees in other occupations 169 6 7.4.4 Conclusions 169 7.5 Absence, recruitment, retention, motivation and morale 170 7.5.1 Absence 170 7.5.2 Recruitment and retention 170 7.5.3 Motivation and morale 171 7.6 Evidence from the Workplace Employee Relations Survey 171 7.6.1 Incidence of long hours working within workplaces 172 7.6.2 Employees’ views about workload 174 7.7 Long hours and productivity, absence levels and staff turnover 175 7.7.1 Staff turnover 175 7.7.2 Results of multiple regression 177 7.7.3 Summary of multiple regression analysis 179 7.7.4 Productivity 180 7.7.5 Staff absence 184 7.8 Evidence from the case studies 184 7.8.1 Impact on employers of long hours worked by manual employees 184 7.8.2 Impact on employers of long hours working by non-manual employees 186 7.9 Conclusions 189 8.