Four-day work week: ACTU to push for shorter week at Jim Chalmers’ economic roundtable, no pay cuts

The Australian Council of Trade Unions will present a proposal advocating for reduced working hours, including a four-day work week, at next week’s Economic Reform Roundtable in Canberra.

The union argues that its push is aimed at ensuring Australians gain from productivity improvements and technological advances, and said it was “key to lifting living standards”.

Unions claim a shorter working week was essential for improving employees’ quality of life. They stress that such a reduction should not come with any loss of pay or conditions, with protections covering penalty rates, overtime, and minimum staffing levels.

For sectors where a four-day week is impractical, unions suggest alternatives such as increased rostered days off, extended annual leave, and redesigned rosters to improve predictability, security, and work-life balance.

Supporting their case, the ACTU cites recent peer-reviewed research published in Nature Human Behaviour showing the benefits of a four-day work week, which include boosted performance, reduced burnout, and enhanced employee health and retention. This study examined nearly 2900 employees across organisations in Australia, New Zealand, Ireland, Canada, the UK, and the US.

A 2023 study from Swinburne University involving 10 Australian companies revealed that 70 per cent experienced higher productivity during four-day week trials, with the remaining firms maintaining previous productivity levels.

The ACTU further argued the nation’s sluggish productivity growth, linking it to insufficient investment in capital, research, and people.

They cited research from Dr Jim Stanford’s analysis from the Centre for Future Work, which showed a significant gap between productivity and wage growth. It found if wages kept pace with productivity since 2000, average earnings would be approximately 18 per cent higher or about $350 more per week.

The Productivity Commission’s recent research notes that Australians are working record hours, but without the complementary business investment necessary to enhance efficiency.

ACTU president Michele O’Neil is pushing the dual benefit of shorter hours, stating: “Shorter working hours are good for both workers and employers. They deliver improved productivity and allow working people to live happier, healthier and more balanced lives.”