The shortening of the workweek is not an effective way to increase labor productivity, as such a measure could lead to a decrease in overall productivity, representatives of the Employers’ Union (UPCG) stated.
The UPCG told Portal RTCG that this is particularly true for sectors where workers’ presence is crucial for service provision or production, such as retail, hospitality, tourism, healthcare, and other service industries.
“In such industries, a shorter work schedule does not automatically mean better efficiency. Instead, it often leads to reduced production capacity, delays in service delivery, and higher hourly labor costs for employers. Additionally, there is concern that reduced working hours could encourage workers to seek additional jobs in the informal sector to compensate for lost income, which would increase the share of the gray economy and create a serious budgetary problem for Montenegro,” said UPCG representatives.
Spain may soon reduce the workweek to 37.5 hours, according to a legislative proposal recently adopted by the country’s government, which is now before Parliament for approval. The Ministry of Labor stated that this measure would affect more than 12 million private sector workers and aims to improve productivity and reduce absenteeism.
The UPCG reminded that the increase in gray economy activities has multiple negative effects, including reduced tax revenues, unfair competition, and additional pressure on the social security system.
“Montenegro is a country highly dependent on tourism and seasonal work, where the intensity of employee engagement is key to generating revenue. Introducing a shorter workweek could have disproportionately negative effects on the private sector, especially on small and medium-sized businesses that are already facing high operational costs and challenges in hiring qualified labor,” the UPCG noted.
They believe that flexible working hours, agreed upon between employers and employees, are a much more suitable model for the modern work environment.
The UPCG does not see the shortening of the workweek as a measure that would bring net benefits to Montenegro’s economic context.
“Instead, the priority should be improving efficiency and effectiveness across all sectors – in the public administration and the economy – as well as fighting the gray economy through inspection and fiscal oversight,” they said.
The shortening of the workweek, in their opinion, would be particularly challenging in sectors such as retail, hospitality, and construction.
“For example, in retail, the ban on Sunday trading led to a decrease in the number of small shops, indicating the difficulties in maintaining service levels without flexible working hours. In retail, construction, and hospitality – which are the backbone of the real economy and employ a large workforce – reducing working hours could negatively impact efficiency and service quality, which would in turn lead to higher prices for services and products, especially given the chronic labor shortage in these sectors,” the UPCG stated.
They pointed out that the experience following the introduction of a Sunday trading ban in retail clearly shows that rigid working time restrictions can have concrete negative consequences.
The UPCG noted that since the introduction of the Sunday work ban, there has been a reduction in the number of small family-owned shops that could not compensate for the lost revenue.
“Consumer spending was not redistributed to other days but was instead shifted to the informal sector or cross-border shopping (especially online purchases). Larger chains have adapted, while small businesses have been hit the hardest, which contributes to market disruption and unfair competition,” the UPCG said.
In the tourism sector, where continuous workforce presence is essential for daily operations, reducing the workweek could lead to fewer staff available per shift, which would affect service quality and guest waiting times, particularly in peak season. It could also increase operational costs for employers due to the need for additional staff or additional strain on existing employees.
“Of course, service quality would be compromised, which would reduce competitiveness, along with all the other challenges that our economy faces. In the construction sector, which operates on strict deadlines and work dynamics, reducing working hours could have direct economic consequences, such as extended project timelines, delays in delivery, and potential contractual penalties. Additionally, there would be price increases due to the need for more intensive work in a shorter time frame and increased logistical and infrastructure costs, as most activities must remain synchronized in time,” the UPCG said.
They believe that shortening working hours in these sectors would inevitably lead to increased prices for goods and services.
The UPCG also stated that any changes to labor laws regarding working hours would require a thorough analysis and consultations with all social partners.
“The decision should be based on qualified data and comparative practices, particularly from countries with similar economic capacities to Montenegro. The assessment of the amendment to the law must be discussed at the Social Council. Moreover, the specifics of different sectors of the economy must be seriously considered before such a decision is made, as a one-size-fits-all working hours model is neither realistic nor sustainable. Without an inclusive approach, there is a risk of implementing solutions that are impractical in practice and could create legal and operational uncertainty,” warned the UPCG.
