Lamborghini Shift Gears, Implements Four-Day Workweek for Staff Without Reducing Wages

By Moon Harper

Dec 06, 2023 11:08 PM EST

Lamborghini has agreed with unions to implement a four-day work week for its production staff without reducing wages, marking a historic development in the European automotive industry. The agreement, part of a broader negotiation, will involve rotating schedules, reducing employees to 22 to 31 working days per year. The deal includes increased variable bonuses, a one-time bonus of over 1,000 euros, and the creation of 500 new jobs. This move aligns with a broader trend in Italy, with other companies like Intesa Sanpaolo and Essilorluxottica exploring or implementing four-day work weeks to address various concerns, including energy costs.

(Photo : Unsplash/Chris Kursikowski )

Four-Day Workweek Concept

As reported by Reuters, Lamborghini's groundbreaking agreement with unions to implement a four-day work week for production staff is a first in Europe's automotive industry. This "historic" move, praised by the Federazione Impiegati Operai Metallurgici (FIOM) and Federazione Italiana Metalmeccanici - Confederazione Italiana Sindacati Lavoratori (FIM-CISL) unions, reduces work hours without decreasing pay. Lamborghini's plan involves creating 500 new jobs, increasing annual salaries, and enhancing overall worker benefits, signifying a comprehensive overhaul of the company's current employment model.

During recent union strikes at major U.S. automotive manufacturers, a four-day workweek was suggested. However, as negotiations progressed, priorities shifted towards demands for increased pay and streamlined paths to reach top wages. Trials of a four-day workweek in countries like the U.K., South Africa, and Canada have shown various benefits. These include increased productivity, better job retention and recruitment, cost savings, and lower sickness levels.

Lamborghini's "Historical Move"

Lamborghini's production workers will switch between a five-day and a four-day work week, reducing their annual working days. This move and other companies adopting a four-day work week may set a trend for influential companies in 2024. As businesses aim to balance productivity, employee well-being, and operational costs, innovative work schedules like Lamborghini's are expected to become more prevalent, reshaping the traditional workweek.

First European Carmaker's Initiative

On auto assembly lines, hours are frequently shortened when demand declines, but it's believed that this is the first time a European automaker has offered fewer hours in exchange for more excellent pay. Based on their schedules, shift workers at Lamborghini's flagship factory near Bologna will have at least two monthly four-day weeks. The deal also includes more significant bonuses in negotiations with unions and Lamborghini's owner, Volkswagen.

In February, 56 out of 61 companies in the U.K. participated in a four-day week trial, and 18 committed to making it a permanent initiative. Participants reported reduced stress levels with no impact on productivity. Essilorluxottica, the owner of glasses brands like Ray-Ban and Oakley, announced a four-day week trial for factory employees after agreeing with unions. Lamborghini's recent agreement for a four-day workweek follows the company's record financial results, with turnover exceeding €2 billion from 7,744 cars made in the first nine months of the year. The carmaker is experiencing high demand for its internal combustion-engined models, including the sold-out £194,169 Urus SUV and £235,110 Huracan, which are fully booked until next year.

Growing Industry Trend

Umberto Tossini, Lamborghini's chief people officer, highlighted the innovative shift system's capacity to meet customer demand while prioritizing employee well-being. Lamborghini transitions away from petrol and diesel models, planning to introduce its first electric supercar by 2028. Its decision aligns with the growing trend of U.K. and European companies adopting four-day workweeks to enhance productivity while reducing working hours.