Exactly. Budget based on at least 40 hours.
They ignore the obvious supposedly unintended consequences.
This saves the companies money as they can pay the employees less.
More people make less.
More people can work 32 hours, not 40 so the value of the work goes down too. So people are likely to be paid even less per hour.
The companies won’t all just pay overtime and keep people at 40 hours.
So they are doing the opposite of what they supposedly intend to do.
Proposal includes the proviso that person works 32 hours——GETS PAID FOR 40 hours.
This is NOT a savings to the company owner.