The employer must certify that, for the duration of the Shared Work plan, the reduction in hours replaces a layoff which would have resulted in a reduction of at least the same number of hours of work. Under an approved Shared Work plan, a company could employ its total workforce by reducing the workweek to four days. Advantages to the Shared Work Program Production and quality levels are maintained and rapid recovery to full capacity is possible through retention of an experienced workforce. When the economy recovers, administrative and training costs of hiring new employees are eliminated. Affirmative action gains are protected.
Employee morale remains high.
The impact of a recession is more equitably distributed because most recently hired workers who would have been most susceptible to layoff are retained. Employees retain their skills and advancement opportunities. Consumer spending patterns remain more stable, which could result in a milder recession. Public Assistance expenditures are lessened. Disadvantages to the Shared Work Program Valuable employees who are able to locate full-time employment elsewhere may be lost.