Australian Unions Push for Shorter Working Hours, Including Four-Day Week
Australian workers could benefit from a shorter working week, including a four-day model, according to a proposal by the Australian Council of Trade Unions (ACTU) to be presented at next week’s Economic Reform Roundtable.
The ACTU is arguing that workers deserve to reap the benefits of productivity gains and technological advancements, and reducing working hours is key to improving living standards.
The proposal suggests moving towards a four-day work week where feasible, and sector-specific alternatives where it is not, while protecting pay and conditions, including penalty rates, overtime, and minimum staffing levels.
Research Supports Four-Day Work Week
A recent peer-reviewed study published in Nature Human Behaviour found that a four-day work week boosts performance, reduces burnout, and improves employee health and retention.
The study, which examined 2,896 employees across 141 organisations in six countries, supports the ACTU’s proposal.
Trial implementations of the four-day week in Australia and overseas have also shown productivity benefits when workers are involved in the design of new workflows.
A 2023 study at Swinburne University found that productivity increased in 70% of the Australian companies trialling the four-day week, and remained the same as pre-trial levels in the remaining 30%.
Productivity Growth Falters
Unions argue that Australia’s slow productivity growth is due to a lack of investment by businesses in capital, research, and people.
According to a paper by Dr Jim Stanford from the Centre for Future Work, real wages would be around 18% higher, or approximately $350 per week, if they had grown at the same rate as productivity since 2000.
The Productivity Commission’s research paper ‘Productivity before and after COVID-19’ notes that Australians have been working record-long hours, contributing to the productivity slowdown.
However, these additional hours have not been matched by business investment that would allow people to work more efficiently.
A Fairer Deal for Workers
ACTU President Michele O’Neil stated, “Shorter working hours are good for both workers and employers, delivering improved productivity and allowing working people to live happier, healthier, and more balanced lives.”
O’Neil added, “A fair go in the age of AI should be about lifting everyone’s living standards, not just boosting corporate profits and executive bonuses.”