Business slams proposal as 'anti-productivity thought bubble'
A four-day work week model will be presented by Australia's peak union at the Federal Government economic roundtable next week - a move that has immediately been slammed by businesses.
The Australian Council of Trade Unions (ACTU) said on Wednesday it will propose a transition towards shorter working weeks at the event.
"For workers in some sectors, shorter working hours can be delivered through moving to a four-day work week," said ACTU president Michele O'Neil (pictured right) in a statement.
"For other people, this could be achieved through other ways, such as more time off or fairer rosters."
The ACTU said its proposal would ensure pay and conditions, such as penalty rates, overtime, and minimum staffing levels, would be protected to ensure a reduced work week without loss of pay.
"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," O'Neil said.
But employers were quick to slam the proposal, citing the country's lack of progress on productivity.
"This thought bubble is exactly the opposite of what we need at a time when we face declining living standards directly linked to our poor productivity performance," said Ai Group chief executive Innes Willox (pictutred left) in a statement.
"Next week's roundtable needs a focus on outcomes put ahead of process, certainty above complexity and deployment above dollars, not bizarre proposals which would drive our economy backwards."
Four-day work week in Australia
The four-day work week model is a working arrangement that has been gaining momentum across the world, with demand also growing in Australia.
A poll from Robert Half last year revealed that 65% of employees want to work the same number of hours in four days, with the retention of salary.
Various companies have trialled a four-day work week for their employees back in 2022 for a pilot run of the work arrangements.
Last year, Medibank also announced that it is expanding its four-day work week programme following a successful trial that showed improvements in employee engagement, job satisfaction, as well as health and wellbeing of participants.
Medibank's findings underscore the indicated benefits from the four-day work week arrangement according to previous studies.
Research from Swinburne University of Technology in 2023 revealed that Australian senior managers who implemented a four-day work week in their organisation gave it a 9.2 score out of 10.
The biggest benefit from the scheme was the increased ability to retain and attract employees, according to the surveyed managers.
A recent study published in Nature Human Behaviour, which included employees in Australia, New Zealand, Ireland, Canada, the UK, and the US, also revealed that the four-day work week reduces burnout.
"The results indicate that income-preserving four-day work weeks are an effective organisational intervention for enhancing workers' well-being," the study read.
Impact on productivity
But the Ai Group slammed the ACTU's proposal as "anti-productivity," saying it will make Australia less attractive to much-needed investment and lead to fewer jobs.
"Unions have offered up another populist, anti-productivity thought bubble with a proposal that employers must bridge a four day week with reduced working hours but maintain wages at their current rate," Willox said.
"This comes at a time when the Reserve Bank of Australia yesterday told us we face declining living standards because of falling productivity."
The proposal also comes as the Victoria government moves forward with its plan to legislate four-day work weeks for employees.
"With this idea, based off a loaded academic survey of a trial including 10 companies that provided at best mixed results, along with Victoria wanting to legislate two days working from home for every worker, it seems the union movement and parts of the Australian government don't want Australians to work at all," Willox said.
"In their muddled thinking, it seems the ACTU want to broker a four-day week for everyone at the same pay rate in exchange for businesses being allowed to use artificial intelligence to boost productivity, improve workplace safety and boost worker skills. There is neither logic nor coherence to their proposal which should be dismissed out of hand."
