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This is similar to a problem my old company had. The introduced flexible working hours, with the "just work 35 hours a week any time you want". Unfortunately some of the engineers said "well I work 10 hours a day anyway, so can I just stop on Thursday afternoon?"

It turns out that a lot of people work a lot of hours to actually deliver the stuff the company needs. That managers say these things simply shows how they don't appreciate how much effort some people actually put in...