Heavier than air flight. A man on the moon. A heart transplant. A four-day work week? All terrifying propositions at first, but with potentially great benefits. Or so their proponents claim.
While the four-day work week has been tested in other countries such as Japan, City of Launceston is blazing the trail ahead of mainland Australia. Launceston Council has settled on an in-principle agreement with the Australian Services Union that full-time employees will work 30.4 hours over 4 days, in exchange for 100% of their 5-day per week salaries.
This arrangement forms part of the proposed Enterprise Agreement that Launceston Council’s 600 or so employees still need to vote to approve. If it is approved, it will be the first of its kind in Australia, and may serve an important role as a trial run.
Not only other city councils, but businesses across the country will want to pay attention to the results generated by the Council’s ‘experiment’.
What Is Being Proposed and How Will It Work?
Launceston Council’s chief executive, Sam Johnson, has stated that studies show four-day weeks can lead to a more engaged workforce, increased efficiency, and improved attraction and retention outcomes.
One of the key challenges, according to Tash Wark, branch secretary for ASU Tasmania/Victoria, has been maintaining essential services five days per week. The proposed Enterprise Agreement addresses this by implementing a structured rostering system, with most staff taking either a Monday or a Friday off.
In practical terms, the model operates similarly to a weekly RDO. This structure may address a common concern among businesses: the perceived need to remain available to clients and customers five days per week.
If approved, the Council and the ASU hope the four-day work week could become more widely adopted across Australia. Regardless of the outcome, the Agreement will likely have broader implications for industrial relations and enterprise bargaining discussions nationwide.
What Does This Mean for the Private Sector?
Employer organisations have expressed concerns with a 4-day work week impacting on productivity, while the ACTU is applauding it.
There is an element of waiting to see the impact, if any. Certainly, the Council has approached it with their staff, functions and the community in mind – as is appropriate for an single workplace Enterprise Agreement negotiation process. Their desired outcome is:
- to attract skilled staff (something that has been difficult),
- address (and lower) turnover rates, and
- reduce burnout and improve workforce stability.
With the result of the above being stable, continued and protected service delivery to the community the Council serves. This may be appealing to employers who are facing similar challenges and want to introduce initiatives that can address them.
Enterprise Agreements – A Flexibility Option?
Enterprise Agreements (EAs) are legally binding workplace instruments approved by the Fair Work Commission that allow businesses to negotiate tailored terms and conditions to suit their operations. Any EA must ensure employees are better off overall compared to the applicable Award and legislative minimum standards.
In a recent episode of IRiQ Talking IR, Joanna Minchinton spoke with IR Barrister Troy Spence about enterprise agreements and the four-day work week. You can watch the full discussion here.
Final Thoughts
Whether the four-day work week proves to be revolutionary or simply experimental, one thing is clear: workplace flexibility is evolving.
If your organisation is exploring productivity initiatives such as a four-day work week, or reviewing how enterprise bargaining could better support your operational needs, IRiQ Law can help.
Our team provides strategic advice on enterprise agreement negotiations, productivity measures, and workforce flexibility solutions tailored to your business.
Contact us to discuss how an Enterprise Agreement could work for your organisation.
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