Kachi wrote:
Quote:
Short term, sure. Long term, you'd be looking at more people unemployed as labour costs induce bankruptcy of companies.
How so? It's just a redistribution of labor. Companies wouldn't have to pay any more for labor than they do now, just spread it out among more people.
Assuming your payrolls/tax systems work the same as ours a company has to contribute to the employment benefits, old age pensions and there are caps on these. Every employee you drop in hours to add another, means one more person not hitting the cap, meaning more paid. Benefits take a hit, as it costs far more to cover benefits of 3 30 hour people than it does 2 45 hour people. There's also the added need for more support positions, in departments like HR, that increase costs due to more people being employed.
Don't get me wrong, when I toss out that more companies will go bankrupt as a result of that, it's taking the view to the more extreme side of things, but it is a real possibility. More employees is often more expensive and for many more reasons than the ones I listed already. However, it's a unique situation for each company.
Some companies are structured in a way that more part time employees benefits them, but that's usually a result of mandatory wage increases and benefits at certain points in an employee's employment.
