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the Netherlands, Belgium, and Hungary, carried all with a permanent contract. The average
out on behalf of Eurofound.24 The case-study working week is 35 hours, and the company
research in the Netherlands and Belgium was aims at full-time, long-term employment rela-
carried out by TNO and Modern Workx. The tionships. However, employees can work part-
case-study research in Hungary was carried out time at their own request. The company’s
by the Research Group for Learning Economy need for flexible working hours stems from the
and Innovation at Szent István University. highly fluctuating number of customers per
A case-study approach allows us to investigate day, week, and over the year; as well as from
the complexity of the relationships25 in everyday the customer demand for longer opening hours.
practice and the success factors of the FWTAs, For this purpose, the company applies an
such as the employee–employer dialogue. annual working-time account for all workers.
The retail and the automotive sectors Vroom & Dreesman (V&D) is the largest
were selected because one may expect a department store in the Netherlands, with
strong influence of the economic crisis and 62 stores and over 10,000 employees. V&D
competitive pressure here. Therefore, the sells a large range of midpriced nonfood
need for an adequate flexibility strategy is products like fashion, multimedia, electronics,
important for competitive reasons, and the books, and home-furnishing products. In the
achievement of a balance with employees’ case study, we focus on a V&D store that has
interest is not self-evident. The focus in approximately 70 employees, of which a bit
over 50 percent have a permanent contract.
The other workers have min-max contracts
A case-study approach allows us to investigate in a range between 3 and 38 hours per week.
the complexity of the relationships in everyday
Of the employees with a permanent contract,
practice and the success factors of the FWTAs,
more than half have a contract of 32 hours or
such as the employee–employer dialogue.
less. The company’s need for flexible working
hours stems from the highly fluctuating
the study is on employees in production number of customers per day, week, and over
departments and in retail stores. the year, as well as from customer demand
The five case companies and background to be able to shop seven days a week.
on their working-time arrangements are For this purpose, the company uses a
introduced in the subsections that follow. working-time account of annualized hours for
the employees with a permanent contract and
Two Retail Companies combines this with min-max contracts.
development department and a sales and surface space of the production halls in
services department, totaling to over 200 2012 and 2013. The company’s need for
employees. Our case study focuses on the flexible working hours stems from seasonal
assembly section in the production depart- fluctuations and strong economic fluctuations
ment. The average working time is 40 hours in the automotive industry. Audi chose a
per week. Although Nido will grant all work- strategy to protect all its well-trained workers
ers’ requests to work part-time, only a few with implementing a special three-year-
workers have a part-time contract. The com- long flexible working-time arrangement and
pany’s need for flexible working hours stems guaranteed job protection until the end of
from the seasonal pattern in production, with 2011 for 1,100 full-time core workers.
a peak in the months before the winter. For
this purpose, the company applies an annual Interviews and Research
working-time account that allows the com-
pany to differ between high and low seasons. In each of the companies selected for our
CabTec is a company of Swiss origin that case studies, we have conducted face-to-face
has two plants in Hungary. CabTec produces and group interviews with company man-
more than 10,000 products, including agement, local management, employee rep-
conductors, cables, and interlocking devices, resentatives (unions or works councils), and
for automotive-industry companies. The plant employees. We have studied relevant docu-
of the study, in Kecskemét, was hit by the ments when available, such as actual work
negative effects of the economic and financial schedules, financial figures, annual reports,
downturn in 2008 and 2009. In 2011, the and results of employee surveys conducted
number of workers at the Hungarian plants by the company, when available. We con-
was 338, an increase from 2009, when ducted the research at the end of 2011 and
the company employed 310 workers. The the beginning of 2012.
company’s need for flexible working hours
stems from seasonal fluctuations and strong VARIABILITY OF WORKING HOURS
economic fluctuations in the automotive AND TIME ACCOUNTS
industry. To cope with seasonal fluctuations,
the company uses a working-time account In this section we elaborate on the two main
over a two-month period. As a response to aspects of working-time flexibility that were
the crisis, the company applied a compressed found in the case companies: the variability
working week for several months. of the working hours and the working-time
Audi Hungaria Motor Kft. (Audi) was accounts in place.
established in 1993 in Györ. At the time of Both retail companies face great variability
the establishment of Audi, the company’s in the amount of customers during the day,
main task was the assembly of the engines but also over the week. Apart from this
of the Audi TT coupé. All the parts of the variability, there are seasonal fluctuations
engines and cars were imported from the related to specific holidays or simply related
mother company from Germany and other to the weather conditions. Because the
suppliers. The Györ plant is growing, despite amount of work is closely related
the effects of the 2008 crisis, and doubled the to the number of customers in the stores,
both companies tried to adjust the number fluctuations in the demand for labor, which
of workers as closely as possible to the can differ from day to day. The employees
expected number of customers. This results have highly individualized rosters but are
in individualized work rosters with many being paid a fixed salary on the basis of their
different shifts, starting and ending at average working week. Both retail companies
different hours per day. use something called a “wish book” in order
In the automotive sector, the level of to meet the demands of the employees.
variability in the daily working hours is Employees can express their wishes with
much lower, and the work schedules are regard to their working hours and thus
more collectively organized. The tasks of achieve a good work-life balance, despite the
the employees are closely connected to each flexible work rosters.
other on the production lines; an individual
simply does not easily step in or out of the Colruyt
production line. Due to the character of
the work processes, work schedules have a Colruyt has developed a time-banking system
more collective and more regular character with a working-time account over a one-year
than in retail. Variability of working hours period. The maximum positive balance (over-
per day or week is linked to seasonal or long- time hours worked) in the time account may
term fluctuations in the demand for products. reach 130 hours on a yearly basis (or 100 hours
at the request of the employee), and the maxi-
By using a compressed working week (four ten- mum negative balance (reduction in hours)
hour days per week) for a short period of time, may reach 40 hours (only on a voluntary basis).
CabTec was able to save on energy and pro- Management and unions used the new agree-
duction costs, without decreasing the number of ment to combine new rules on the broadening of
working hours. the store’s opening hours with new rules about
the working-time account. The accounts are tai-
By using a compressed working week (four lored to the needs and desires of employees, who
ten-hour days per week) for a short period fill in personal templates once every six months
of time, CabTec was able to save on energy (in dialogue with their managers) and choose
and production costs, without decreasing whether or not to work overtime, the number
the number of working hours. It prevented of overtime hours on a weekly or monthly basis
dismissal of permanent workers by the one wants to work, and whether the overtime
company. The same is the case with the long- hours will be compensated with leave, paid
term working-time account at Audi, on which out, or put into an account. Employees can also
we elaborate later. choose whether to work early-morning shifts.
All case companies have negotiated Employees can decide at any moment to change
working-time accounts. Both retail companies their individual agreement.
have implemented a time-banking system
that is based on an average working week on V&D
a yearly basis and allows high variability in
the planning over the weeks. This allows the V&D has negotiated a time-banking system
companies to have the flexibility to cope with at the corporate level. Employees with a
permanent contract at V&D have a contract ten-hour days per week instead of five eight-
for a specific number of hours per year (the hour days in order to save energy and pro-
so-called current account) and work an aver- duction costs. The crimping and cutting units’
age number of hours per week. They have a two-shift system was modified to a one-shift
fixed salary per month. The weekly deviation system. Employees with young children
to the average working week can be 40 per- worked four eight-hour days per week. There
cent for employees who work fewer than 30 was a reduction in their salary. In practice,
hours per week and 30 percent for employ- many of them chose to have a second job or
ees who work more than 30 hours per week. worked in their family greenhouses to earn
They also have a right to fixed days off. extra money on the fifth day.
Nido Audi
working hours, the companies were able to were able to have a good work-life balance.
improve productivity by creating a better The management found it necessary to
match between the demand for labor and the create more transparency with regard to
number of hours worked. Both the working- the working-time preferences of employees
time accounts and the possibility of variable and to guarantee the voluntariness in the
working days and weeks help to reduce flexibility that was requested from them.
overtime on the one hand and underutilization Balance was achieved as a result of the
of personnel on the other. However, both way in which new working hours were
employee representatives and employers from implemented rather than the working hours
the various companies acknowledge that there alone. The most important aspects of this are
has also been a positive impact on work- the negotiability of the working hours, the
life balance, job security, and employability. influence the employees have on them,
The FWTAs have been implemented in an the notification period of three weeks for the
employee-friendly manner. weekly work schedules, the sufficient means
for compensation, and the considerable
Work-Life Balance possibilities to get time off when needed.
However, the fact that overtime is now
Due to the high variability of the working monitored quite closely and controlled by the
hours in retail, it is hard to combine work manager was also important. The monthly
and family life. However, the employees at salary sheet provides all the necessary
both Colruyt and V&D indicate that they information needed to see the number of
overtime hours worked, accrued time off, and
With the introduction of flexible working hours, benefits received.
the companies were able to improve productiv- The unions at V&D wanted to improve
ity by creating a better match between the the work-life balance of employees by
demand for labor and the number of hours providing less flexibility in the working
worked. hours. The unions view the limitation of the
bandwidth of the working-time account and
don’t have a problem with the variability of the provision of fixed days off as important
the working hours. Interviews with employ- measures to create a better work-life balance.
ees indicated that the following aspects For example, employees with a contract of
are important: the voluntary character of 20 hours per week or more have the right
the arrangement and the negotiability of the to ask for one fixed day off in the week.
working hours, the ability to change shifts Employees with a contract of fewer than
with colleagues, the fixed days off, and the 20 hours have the right to ask for two fixed
informal influence of employees on their days off in the week. Every half-year, these
working hours. fixed days can be changed by the employee,
Colruyt used to deploy mostly older in a dialogue with the manager. Apart from
male workers, but with its growth, more this, employees appreciate what they call
women and younger workers entered the “informal flexibility,” which means that they
company. Both management and unions can change their working hours and exchange
wanted to guarantee that all employees hours with colleagues, in consultation with
measures against too much company-oriented low-peak periods would be enforced strictly.
flexibility and set rules that have made the A process of negotiations was started. The
measures more employee-friendly. final outcome is that the maximum deficit
The working-time account at V&D was was decreased to 50 hours. And although
introduced more than 12 years ago. The management does obtain the ability to
intention was to create a better alignment declare collective closing days, the workers
between the need for labor and the do get compensated in additional time off.
availability of employees. In the beginning, At CabTec employees and the works council
the system was open-ended, and the result understood the necessity of the measures
was that some employees had a negative and in order to protect jobs: the introduction of
others a positive balance at the end of the a compressed working week, the change
year. This was an undesired situation for both from two shifts to one, and the reduction of
management and the unions. The outcome working time for women with young children.
of the new dialogue was an agreement Furthermore, the new break system and its
to decrease the annual bandwidth of the compensation met the demands of employees:
time-banking system (the number of hours 20 minutes out of the 30-minute daily breaks
annually allowed above or below the average are paid, so there is an increase in the salary
contractual working hours) from 7 percent in for the blue-collar workers.
2010 to 4 percent in 2011 and to 2 percent The management of Audi and the
in 2012. employee representatives worked on their
Management and unions at Colruyt common aim to protect jobs, and the FWTAs
negotiated a new collective agreement on have been implemented with the support of
the working hours and the working-time all the parties. The extra 22 days off were
account. Part of the debate was about the a compensation for the stagnation of salary
extended opening hours of the Colruyt stores. and the decreased financial premium. The
Unions wanted to protect the employees from employer announced the compulsory days
working too much in the early morning, off, which were mostly concentrated around
in the evening, or on Sunday. Colruyt reassured holidays. The employees were informed in
the unions that there was no intention to advance about the days off so they could plan
expand the general opening hours to Sunday, for these extra days with their families.
and a compromise was reached with regard to
the opening hours and financial benefits. DIALOGUE, TRUST, AND RECIPROCITY
At Nido, the works council opened a
discussion with the local management One of the findings of the study was the
about the maximum amount of hours that importance of mature employment rela-
workers could be indebted to the time bank. tions in order to reach a balance between
Employees feared that the maximum deficit employer- and employee-friendly flexible
of 200 hours could lead to a reduction of working hours. In order to reach this, three
working hours over the years. They also conditions are important: dialogue, trust, and
feared that the rules around the high- reciprocity. All three are important at both
peak periods and obligatory leave in the collective and the individual levels.
❏ Dialogue: A mature dialogue requires colleagues or to take time off when needed
mature employee representation and HR is a prerequisite for being able to combine
management and a setting in which a work with private life.
balance of interests can be achieved. A ❏ Reciprocity: Reciprocity cannot be seen
top-down approach will not work in a way apart from the social-exchange character of
that enhances support from workers for employment relations. An individual who
change and renewal. At all five companies, receives something that is in line with or
the employee representatives could nego- beyond expectations will feel motivated
tiate with management and were taken to reciprocate in a similar way, sometimes
seriously in their role. But also at the level displaying extra effort. Reciprocity implies
of the work floor, a dialogue between the the preparedness to negotiate, to check,
individual employee and the manager is and to correct at any time when necessary.
important, in order to reach the necessary Only in such a setting will partners be pre-
informal flexibility, which is highly appre- pared to start dealing in a way that they
ciated by the employees. can respect opposite interests.
❏ Trust: The parties to the agreements are
aware that each side has its own agenda. LESSONS LEARNED
This is not a problem as long as parties
respect each other’s points of view and The bottom line is the presence of mature
interests. Trust must be earned. Defining employment relations between employer and
the scope and boundaries of the debate is employee. The preparedness to negotiate con-
also important for creating trust.
Trust is important not only at the
executive level, but also at the level of A mature dialogue requires mature employee
representation and HR management and a set-
the work floor, between manager and
ting in which a balance of interests can be
employee. Clarity on the company strategy
achieved.
is important in this respect. Employees
need to understand the reasons behind the
company-oriented working-time flexibility structively is essential. Such a dialogue takes
and at the same time trust their managers place both at the level of the collective agree-
in respecting the employee demands. ments and at the individual level. At the col-
The quality of the floor manager is also lective level, the framework is set in which
very important in building trust, in terms there is room for tailor-made arrangements
of negotiability and predictability. It is on the individual level. Employee demands
important for the employees that they can are respected—as much as possible. The local
negotiate individually about their specific manager should have the skills to have a
needs with regard to working hours. Most mature dialogue with the employees as well
important is the fact that the manager as the skills to plan the working hours as
respects the individual needs and allows efficiently as possible. Moreover, the man-
employees to formulate these needs. The ager should provide predictability and should
day-to-day possibility to change shifts with clearly communicate the need for flexibility.
Aumayr, Oscar Vargas, Manuel Ortigao, Car- overview report is based are available on demand from
los Vacas, and Maurizio Curtarelli) for their Eurofound.
able support and feedback during the proj- 8. See note 1.
ect. We also thank Robert Vergeer and Peter 9. Chung, H. (2011, June). The varying company perfor-
Oeij (TNO, the Netherlands); Jan de Leede mance outcomes of working-time flexibility practices
and Koos van Adrichem (Modern Workx, the across 13 sectors in 21 European countries using the
Netherlands); Péter Csizmadia, Csaba Makó, European Establishment Survey (2004/2005). Paper
and Miklós Illésy (Research Group for Learn- presented at the expert meeting organized by Eurofound
ing Economy and Innovation, Gödöllö: Szent on “Organisation of working-time: Implications for
István University, Faculty of Economics and productivity,” Dublin, Ireland. Retrieved from http://www
Social Sciences, Hungary); and Ákos Tóth .eurofound.europa.eu/docs/events/2011/workingtime/chung
(Research Group for Learning Economy and _paper.pdf.
Innovation, Gödöllö, and Kecskemét College, 10. Gareis, K., & Korte, W. B. (2002, June). ICTs and the
Hungary) for their expert work on the case adaptability of work arrangements in the EU. Paper
studies. We thank Luc Dorenbosch (TNO) for presented at the European Conference on Information
his useful comments on and suggestions Systems, Gdansk, Poland. Retrieved from http://is2.lse
for the article. And, finally, we are thankful for .ac.uk/asp/aspecis/20020073.pdf.
the cooperation and openness from the case 11. See Deloitte Consulting for the European Commission.
companies. (2010). Study to support an impact assessment on further
action at European level regarding Directive 2003/88/EC
and the evolution of working time organization. Diegem,
NOTES Belgium: Deloitte. See International Labor Office. (2007).
Decent working time, balancing workers’ needs with
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4. Laliberté, P. (2011). Editorial. International Journal of Flexible working practices and the intensification of work.
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Huiskamp, R. (2006). “One-size-fits-most”: Dialoog en conflict on the relationship between family and work.
maatwerk in huidige arbeidsrelaties. Tijdschrift voor Submitted in partial fulfillment of the requirements for the
HRM, 9(3), 6–30. degree of Doctor of Philosophy under the Executive
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eu/social/main.jsp?catId=547. New York, NY: Columbia University.
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17. See note 5. 23. See note 21.
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