Birgit is sent home from work every other week: *"I’m happy it’s not a dismissal."*

When a company experiences a decline in orders for a period, it often means they have to lay off employees. And when orders come in again, they have to rehire them.

But at Vestfrost Solutions in Esbjerg, a company that produces components for refrigerators and freezers among other things, they have chosen a different approach.

> There are some things you don’t prioritize as much when you know you have lower income.

> **Birgit Pedersen, employee, Vestfrost Solutions**

Here, 80 employees in production alternate between working one week and staying home on unemployment benefits the next. A solution the company has adopted because some orders after New Year’s wouldn’t be produced as expected, says factory manager Søren Lassen.

- Right now, we’re in a tricky situation regarding our order intake and some approvals we’re missing, so this is the best possible solution for us, he says.

The work arrangement, where employees alternate between being at work and at home, has been in place for two weeks, and the company has informed its employees that it may continue until May.

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### Won’t Lose Colleagues

Birgit Pedersen has worked at the company for 33 years and is one of the employees now sent home every other week.

And this solution also has its benefits, she says:

- I enjoy spending time with my family and my grandchildren, so I really appreciate that.

> I clearly think it’s a gift that people are doing well, and it shows that the company wants to keep them.

> **Mai-Britt Jensen, union representative, Vestfrost Solutions**

The arrangement means employees see a drop in income, as they only receive wages for the weeks they work and unemployment benefits for the weeks they stay home.

And that’s noticeable, says Birgit Pedersen:

- It does mean a lot financially. There are some things you don’t prioritize as much when you know you have lower income.

But when the alternative would be a layoff notice for herself or other colleagues, she prefers the solution the company has implemented with the work-sharing arrangement.

- I’m happy to be where I am. So I’m glad it’s not a layoff notice, meaning I’d have to find other jobs. I also have some fantastic colleagues, and I wouldn’t want to miss out on them.

* Birgit Pedersen works in the company’s production hall, where there are normally five production lines running, but in these days, only two are operational. *(Photo: © Bo Bechsgaard, DR)*

* Vestfrost Solutions in Esbjerg is over 60 years old. The company exports freezing and cooling components worldwide, including for vaccine refrigeration. One of its major customers is UNICEF. *(Photo: © Bo Bechsgaard, DR)*

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### Better to Support Employees

Union representative Mai-Britt Jensen also believes the work-sharing solution is the best option under the circumstances:

- Of course, it’s tough, but it’s a condition we have to adapt to. We’re not in control of how many orders we have, so we’re supporting each other instead of losing colleagues.

> It ensures that someone retains employment rather than having to rely on full public assistance in the form of unemployment benefits or social welfare.

> **Thomas Bredgaard, Professor, Aalborg University**

She also believes the company is showing employees that they value them by doing this.

- I clearly think it’s a gift that people are doing well, and it shows the company wants to keep them.

The company has previously used work-sharing during periods of low orders to avoid layoffs, including during the coronavirus pandemic.

According to factory manager Søren Lassen, they have good experience with this approach.

- We have a very good and stable workforce here. Employees choose to accept the situation and take a pay cut every other week. And then they’re ready to return when we have more work to do, he says.

When your employees are on unemployment benefits, it’s all of us together who pay for it. Is it fair that society pays to keep your workforce intact until you need them again?

- I actually think it is. It’s one of the safety nets we have in place, and we make use of it, says Søren Lassen.

* Factory manager Søren Lassen believes work-sharing is the best solution under the circumstances. This way, the company avoids having to dismiss its good employees, he says. *(Photo: © Bo Bechsgaard, DR)*

* Mai-Britt Jensen is a union representative at Vestfrost Solutions. She also believes work-sharing is the best solution for employees, but she hopes the period will be as short as possible. *(Photo: © Bo Bechsgaard, DR)*

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### Provides Flexibility in the Labor Market

According to Thomas Bredgaard, a professor at the Center for Labor Market Research at Aalborg University, it’s unusual for companies to use the work-sharing arrangement.

- There aren’t many companies that take advantage of it. What typically happens in Denmark is that companies lay off employees instead of reducing their working hours, he says.

The arrangement became more widespread early in the coronavirus pandemic, when about ten times as many companies used it compared to today.

And even though society as a whole contributes to paying for employees to be on unemployment benefits half the time, it’s beneficial for the Danish labor market, says the professor.

- It supports flexibility in the labor market and ensures that someone retains employment rather than having to rely on full public assistance in the form of unemployment benefits or social welfare. So it’s good for both the workplace and the overall economy.

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