ACTU Advocates for Four-Day Work Week Leading Up to Productivity Summit

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The Australian Council for Trade Unions (ACTU) is advocating for a four-day work week to become a standard practice across the nation; however, the prime minister and treasurer have announced there are currently no plans to implement such a change. The primary trade union body argues that shortening working hours is crucial for enhancing productivity while also elevating living standards.

ACTU president Michele O’Neil said the move would ensure that all Australians would benefit from increased productivity and “not just those with money and power”.

“Shorter working hours are good for both workers and employers,” she said

Prime minister, treasurer say ‘no plans’ to adopt policy

Chalmers and Prime Minister Anthony Albanese both said on Wednesday the government wasn’t working on a policy for a four-day work week, in response to the ACTU’s call.

The ACTU proposes that in scenarios where a four-day work week isn’t feasible, alternatives like providing more rostered days off, increasing annual leave, and reorganizing work schedules can be utilized. They anticipate that the four-day work week model will preserve the current pay rates and conditions.

Prime Minister Anthony Albanese said there were “no plans” for the government to adopt a standardised four-day work week. Source: AAP / Mick Tsikas

Chalmers, during a press conference in Canberra, similarly said the government hadn’t been working up a policy for a four-day work week and that it “hasn’t been our focus”.

“Our interest here is in making sure that people can balance their work and family responsibilities. That’s what motivates our position on work-from-home and some of these other contentious areas in recent times,” Chalmers said.

Prime Minister Albanese mentioned that the government does not plan to adopt this concept but acknowledged that the union has the right to propose any ideas it wishes. “Our priority in industrial relations includes eliminating non-compete clauses, securing penalty rates, and expanding paid parental leave… That constitutes our industrial relations agenda and drives our mission,” he stated.

Australians are working longer hours

Since COVID-19, working hours in Australia have increased. A report from the Productivity Commission found that the record growth in hours did not result in increased output. Instead, productivity slumped overall.

The four-day work week is one potential strategy. A study conducted in 2023 by Swinburne University analyzed 10 Australian businesses attempting a four-day work week. The research revealed that 70% of these companies experienced heightened productivity, while the remaining 30% reported productivity levels consistent with the pre-trial phase.

Another study that underwent rigorous peer review indicated that a four-day work week could enhance both employee satisfaction and productivity. In a survey involving 2,896 individuals employed in four-day week roles across Australia, New Zealand, Canada, the United States, the United Kingdom, and Ireland, shorter work weeks were linked to improved performance, reduced burnout, and better worker health and retention.

‘Shaking the tree for ideas’

The ACTU joins the Australian Manufacturing Workers Union and the Australian Nursing and Midwifery Federation, who are also calling for a shorter work week ahead of the productivity roundtable next week.

Nonetheless, not all organizations are keen on moving in this direction. The Australian Financial Review highlighted that several major banks are adjusting their work culture strategies following Westpac’s chief executive Anthony Miller’s memo from December last year, which described his routine of working “every day, including Christmas Day.”

A man in a navy suit jacket and red tie speaks into a microphone. A bottle of water sits in the foreground.

Treasurer Jim Chalmers says next week’s economic reform roundtable aims to “shake the tree for ideas” when it comes to boosting productivity. Source: AAP / Mick Tsikas

Westpac is one of the corporate entities contributing to the economic reform roundtable next week.

Chalmers told ABC Radio on Wednesday morning that the roundtable is about “shaking the tree for ideas”.

“This economic reform roundtable is not to make decisions, it’s to inform the government’s decisions,” he said.

“We have an ambitious agenda that we’re focused on delivering.”