Labour commits to 32-hour working week within a decade

A Working Time Commission is to draw up plans for longer statutory holidays

A Labour government will reduce the average full-time working week to 32 hours with no loss of pay within the next decade, shadow chancellor John McDonnell has announced.

In a speech to the party’s annual conference in Brighton, Mr McDonnell said that – as well as pushing the move to a four-day week – Labour would set up a Working Time Commission with the power to recommend increases in statutory annual leave entitlements to be introduced “as quickly as possible without increasing unemployment”.

To cheers from delegates, the shadow chancellor promised that a Labour government would end in-work poverty by restoring full trade union and workplace rights “on day one”, rolling out collective bargaining and bringing in a Real Living Wage of at least £10 an hour.

And he confirmed that a Labour government will introduce personal care for the elderly free at the point of use in England, funded through general taxation.

But he said that the party would also fight to ensure that working people are able to benefit from increasing productivity by having more leisure time.

“We should work to live, not live to work,” said Mr McDonnell.

The efforts of past Labour governments and the trade union movement had helped cut the average working week from nearly 65 hours in the 1860s to 43 in the 1970s, he said.

“As society got richer, we could spend fewer hours at work,” said Mr McDonnell.

“But in recent decades progress has stalled. People in our country work some of the the longest hours in Europe. And since the 1980s the link between increasing productivity and expanded free time has been broken. It’s time to put that right.

“So I can tell you today that the next Labour government will reduce the average full-time working week to 32 hours within the next decade. It will be a shorter working week with no loss of pay.”

Labour is not planning a French-style cap on maximum weekly working hours, but would take steps to encourage the agreement of reduced hours in negotiations between unions and employers.

These could be taken in the form of extended holidays, shorter shifts or a four-day week, depending on the particular needs of different sectors.

Mr McDonnell said that as a first step, a Labour government would end the UK’s opt-out from the European Working Time Directive.

McDonnell is greeted by Corbyn before delivering his speech (Getty)

Labour would introduce a requirement for working hours to be included in legally-binding sectoral agreements, allowing unions and employers to decide together how best to reduce hours in their industry.

TUC general secretary Frances O’Grady welcomed the announcement.

“It’s time for working people to share in the benefits of new technology,” said Ms O’Grady. “That’s why unions have been arguing for less time at work, more time with family and friends and decent pay for everyone.

“We welcome Labour’s commitment to move to a 32-hour week. Introducing more public holidays and enforcing safe limits on working hours is a sensible start.

“Unions already negotiate agreements on working time in many workplaces. With greater freedom to bargain across sectors, we can help deliver a flexible transition that meets the needs of workers and businesses across different industries.”

Mr McDonnell also announced the launch of a paper on Universal Basic Services, setting out Labour’s belief that “everyone has a right to a good life” and that the state has the responsibility to deliver it by providing public services free at the point of use.

Denouncing the closure and sell-off of parks, libraries, leisure centres and swimming pools under coalition and Conservative governments, he said: ”These services are part of our shared experiences. Experiences that are too important to be left to the vagaries of the market. Whether a family can afford them or not.

“As socialists we believe that people have the right to education, health, a home in a decent safe environment and, yes, access to culture and recreation.”

Polling by YouGov found that 63 per cent of Britons would back a four-day week and 71 per cent thought it would make them happier, but only 17 per cent would support it if it meant them being poorer as a result. A four-day week was supported by 64 per cent of business managers questioned.

But CBI director general Carolyn Fairbairn warned that the 32-hour week – along with plans for nationalisation and the handover of shares to workers – would “risk hanging a ‘closed’ sign on the door of our open economy”.

“Who would turn down a four-day week on the same pay? But without productivity gains it would push many businesses into loss,” said Ms Fairbairn.

“Business has ideas and ambition to match Labour’s. It is time for Labour to root its polices in reality, not ideology. Firms have consistently offered to help shape an economy where prosperity is shared more widely. That offer still stands.”

And Edwin Morgan, the interim director general of the Institute of Directors, said:

“Business confidence is already shaky and directors are unlikely to feel more comfortable now.

“Labour’s working week policy may be eye-catching, but it puts the cart before the horse. The only way to reduce hours while maintaining pay is by improving productivity. Companies agree with the Shadow Chancellor that the UK has a productivity problem, and want to work with any government to tackle it, but blunt regulation on working hours won’t get to the underlying issues.”

Federation of Small Businesses chairman Mike Cherry said: “It’s good to see that Labour have stopped short of proposing a weekly cap on working hours – small firms have struggled with negotiating the Working Time Directive, and it’s important that we avoid policies that could bring about similar challenges.

“But our productivity gap cannot be closed by simply reducing working hours. Forcing a shorter working week on small firms is not feasible. Increasing productivity starts with a proper plan for investing in infrastructure and skills while simultaneously reducing the costs of doing business – not simply reducing working hours.”