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• Question: As a way of curbing the unemployment rate, California has instituted a "shared-work compensations: program". Under this program, a company faced with a layoff of its workers may place its entire workforce on a four-day workweek during the period of hardship. During this period of reduced workweeks, the employees collect partial unemployment compensation benefits. When business rebounds, the firm returns to its normal five-day work-week, and the unemployment compensations benefits cease. Participation in the program must be approved by both the employer and the unions. If, however, the first is not unionized, management has the discretion of putting the plan into effect.
  • What are the benefits of such a share-work compensation program to (1) the employer and (2) the employees?
  • What advantages do you see in the operation of a share-work compensation program, especially from the viewpoint of organized labor?