{"id":358269,"date":"2025-08-20T02:05:11","date_gmt":"2025-08-20T02:05:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/358269\/"},"modified":"2025-08-20T02:05:11","modified_gmt":"2025-08-20T02:05:11","slug":"four-day-work-week-six-weeks-of-holidays-australians-have-a-choice-about-how-to-bank-productivity-gains-industrial-relations","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/358269\/","title":{"rendered":"Four-day work week? Six weeks of holidays? Australians have a choice about how to bank productivity gains | Industrial relations"},"content":{"rendered":"<p class=\"dcr-130mj7b\">One of the ideas that has captured many peoples\u2019 attention amid the flurry of proposals ahead of the economic roundtable is the Australian Council of Trade Unions\u2019 vision of a four-day working week.<\/p>\n<p class=\"dcr-130mj7b\">The peak union body argued that working less could actually be productivity enhancing, although the studies behind those claims aren\u2019t too rigorous.<\/p>\n<p class=\"dcr-130mj7b\">While many Australians would certainly welcome a three-day weekend, Jim Chalmers has made it clear that working towards a national four-day working week is not on the government\u2019s agenda, while reaffirming Labor\u2019s commitment to flexible work.<\/p>\n<p class=\"dcr-130mj7b\">Employer groups have been scathing, and it\u2019s not likely to be a big discussion point on day two of the three-day roundtable.<\/p>\n<p class=\"dcr-130mj7b\">Clearly not on board with the treasurer\u2019s \u201copen hearts and open minds\u201d approach to this week\u2019s talkfest, the Australian Industry Group\u2019s chief executive, Innes Willox, called the four-day working week idea \u201canother populist, anti-productivity thought bubble\u201d.<\/p>\n<p><a data-name=\"placeholder\" href=\"https:\/\/interactive.guim.co.uk\/datawrapper\/embed\/qoFYX\/2\/\" class=\"dcr-1eupayo\" target=\"_blank\" rel=\"noopener\">A smaller share of full-time workers are doing long hours (more than 50 hours a week) from about 25% of FT workers in 2000 to about 15% in 2025.<\/a><\/p>\n<p class=\"dcr-130mj7b\">Willox calculated that at the current dismal rate of productivity growth it would take 26 years to get to the point where we could drop a day\u2019s work without going backwards economically.<\/p>\n<p class=\"dcr-130mj7b\">But as the ACTU secretary, <a href=\"https:\/\/theconversation.com\/politics-with-michelle-grattan-union-boss-sally-mcmanus-on-the-push-for-shorter-work-hours-in-the-age-of-ai-263192\" data-link-name=\"in body link\" target=\"_blank\" rel=\"noopener\">Sally McManus, explained to the Conversation\u2019s Michelle Grattan: <\/a>the labour movement doesn\u2019t expect a revolution in the working week to happen overnight.<\/p>\n<p class=\"dcr-130mj7b\">\u201cTo be clear, we weren\u2019t asking for a change to the workplace laws for the government to do something,\u201d McManus said.<\/p>\n<p class=\"dcr-130mj7b\">\u201cWe were raising this in the context of a discussion both around productivity and around AI as an important part of the distribution of the benefits of productivity growth or, for that matter, productivity growth out of less jobs, out of AI.\u201d<\/p>\n<p class=\"dcr-130mj7b\">The longer arc of Australian history has been towards shorter working weeks and longer holidays. But that progress stopped a few decades back, settling on the current set-up of a 38-hour full-time job, two-day weekend and four weeks\u2019 paid leave.<\/p>\n<p class=\"dcr-130mj7b\">But there has been progress in other ways (assuming \u201cprogress\u201d is working less \u2013 many believe hard work is an end in and of itself).<\/p>\n<p><a data-name=\"placeholder\" href=\"https:\/\/interactive.guim.co.uk\/datawrapper\/embed\/ORYxe\/1\/\" class=\"dcr-1eupayo\" target=\"_blank\" rel=\"noopener\">More women than ever are in jobs &#8211; graph showing about 65% of women in the workforce in 2025 compared to under 52% in 2000<\/a><\/p>\n<p class=\"dcr-130mj7b\">For example, since the turn of the century, the share of full-time employed Australians who say they work longer than 50 hours weekly has gone from 25% to 15%.<\/p>\n<p class=\"dcr-130mj7b\">Meanwhile, part-time work has flourished, fed in particular by a surge in women entering the jobs market. (Which means households overall are probably working harder.)<\/p>\n<p class=\"dcr-130mj7b\">Since the turn of the century, the female employment to working-age population ratio has climbed from 50% to over 60%, according to data from the Australian Bureau of Statistics.<\/p>\n<p class=\"dcr-130mj7b\">(The equivalent workforce participation rate for men is just under 68% and hasn\u2019t moved much over 25 years.)<\/p>\n<p class=\"dcr-130mj7b\">Of course, the working from home phenomenon that emerged with Covid has been a revolution for many, particularly working families. Thankfully, employers are on board and hybrid work looks set to stay.<\/p>\n<p class=\"dcr-130mj7b\">But to many Australians juggling work and other commitments, time still feels like the greatest luxury.<\/p>\n<p class=\"dcr-130mj7b\">In which case, why shouldn\u2019t the reward for lifting productivity growth be fewer working hours for the same pay?<\/p>\n<p class=\"dcr-130mj7b\">Some <a href=\"https:\/\/www.theguardian.com\/business\/2025\/jun\/19\/three-day-working-week-or-higher-pay-productivity-gains-australia\" data-link-name=\"in body link\" target=\"_blank\" rel=\"noopener\">fascinating research<\/a> earlier this year by Rusha Das, an economist at the Productivity Commission, showed we would have a three-day working week today if we had collectively decided in 1980 to spend all the productivity gains of the following decades on leisure time instead of higher incomes.<\/p>\n<p class=\"dcr-130mj7b\">Das calculated that Australians used only a quarter of the productivity \u201cdividend\u201d from the past 40-plus years to work less, while we banked the remaining three-quarters as higher income.<\/p>\n<p class=\"dcr-130mj7b\">\u201cWe have largely traded it for higher incomes, and more and better stuff,\u201d she said.<\/p>\n<p class=\"dcr-130mj7b\">One of the great things about a more efficient and dynamic economy is that it can give us more choices about what we want to do \u2013 how much more we want to buy, how much more we want to work and how much more we want to devote to family, hobbies or helping others.<\/p>\n<p class=\"dcr-130mj7b\">This may be getting ahead of ourselves \u2013 we have to raise our economic speed limit before we decide how much faster we want to drive.<\/p>\n<p class=\"dcr-130mj7b\">But we\u2019d be mad to limit our thinking to the notion higher productivity is all about generating more income.<\/p>\n<p class=\"dcr-130mj7b\">The ACTU\u2019s four-day work week proposal is a good reminder of that.<\/p>\n","protected":false},"excerpt":{"rendered":"One of the ideas that has captured many peoples\u2019 attention amid the flurry of proposals ahead of the&hellip;\n","protected":false},"author":2,"featured_media":358270,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-358269","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115058646951525255","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/358269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=358269"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/358269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/358270"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=358269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=358269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=358269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}