The Australian Council of Trade Unions (ACTU) is advocating for the implementation of a four-day work week to address the growing issue of excessive working hours among Australians. Research indicates that post-pandemic, many workers are experiencing decreased productivity and stagnant wage growth, leading to burnout. The ACTU proposes that a reduction in working hours, while maintaining the same level of pay, could enhance both employee well-being and productivity.
Next week, during the Economic Reform Roundtable in Canberra, the ACTU plans to present its case for shorter working hours. ACTU President Michele O’Neil highlights that Australians desire a better work-life balance and should not have to choose between their jobs and personal lives. She believes that the benefits of productivity improvements should not solely be allocated to shareholders or executive bonuses.
The ACTU suggests that, where feasible, businesses should adopt the four-day workweek. For sectors where this model is less applicable, they propose measures such as additional rostered days off, increased annual leave, and work schedules that prioritise employee balance. Research, both domestic and international, supports this initiative, indicating potential boosts in performance, reduced burnout, and improved employee retention rates.
Moreover, O’Neil points out that the proposed changes could alleviate the disparity between productivity and wage growth in Australia, which has left many workers unable to keep pace with rising living costs. Current analysis suggests that if real wages had enjoyed the same growth as productivity since 2000, Australians would earn about $350 more weekly by 2025. O’Neil emphasises that while improving wages is vital for living standards, providing workers with more time outside of work is equally important.
Besides employee considerations, the ACTU argues that businesses would also benefit from such a shift, as a better work-life balance enhances overall effectiveness at work. Evidence from a 2023 study of ten Australian companies that trialled the four-day workweek showed that 70% reported higher productivity, with the remaining firms experiencing consistent productivity levels.
However, some industry voices, such as the Australian Restaurant and Cafe Association (ARCA), express concerns that a universal four-day workweek could undermine productivity, particularly in the hospitality sector where high demand necessitates extended service hours. ARCA CEO Wes Lambert warns that a rigid implementation of shorter work weeks could further jeopardise the already struggling CBD café market.
Nonetheless, the ACTU is not advocating for a one-size-fits-all approach, acknowledging the need for tailored strategies that consider the unique circumstances of different industries. O’Neil’s aim is for businesses to thoughtfully explore how they can adopt shorter work hours sustainably.
In summary, the ACTU’s push for a four-day work week is grounded in the belief that enhancing work-life balance will benefit not only employees but also employers, fostering a more productive and sustainable workforce.