After a century of Monday to Friday, could the 4-day week finally be coming to Australia?
- Written by John L. Hopkins, Associate Professor of Management, Swinburne University of Technology
The reality of shorter working hours could be one step closer for many Australians, pending the outcome of the federal election.
The Greens, who could control crucial cross bench votes in a hung parliament, have announced plans for a four-day[1] working week, with no loss of pay. They say the policy would alleviate stress and burn out, and increase women’s participation in the workforce.
Earning the same money for fewer hours would appeal to most workers. But is it too good to be true? Could it really be rolled out cost free to all workplaces, especially to “client facing” companies and service providers?
Or does research suggest the Greens could be onto something?
The Greens’ plan
The Greens’ policy would involve a new National Institute for the Four Day Work Week and a test case through the Fair Work Commission.
A series of national trials would be set up in a number of different industries, whereby workers would work 80% of their normal hours, while maintaining 100% of their pay.
According to Greens Senator Barbara Pocock, it’s a win-win for everyone:
It can increase productivity, reduce absenteeism, improve recruitment and retention and give employees more time to manage their home life. This change will allow workers to create a working week that works for them.
The 100:80:100 model
The four-day work week being proposed in this instance is commonly regarded as the 100:80:100 model.
It delivers 100% of the pay, for 80% of the hours, in return[3] for maintaining 100% of productivity.
This is unlike other forms of shorter working weeks, which compress five days’ worth of work into four longer days. This obviously disadvantages some employees.
Recent research[4] conducted by Swinburne University of Technology involved interviews with ten Australian firms that have already adopted the 100:80:100 model.
They were a mixture of small and medium sized private sector businesses, including management consulting firms, a shipping and logistics company, and recruitment and marketing agencies.
The research underlined the potential for a range of positive outcomes for both employers and employees.
Workers reported having better work-life balance, more time to complete “life administration” tasks, and more time to invest in hobbies, exercise, wellness and self-care. Bosses cited productivity gains, reduced sick days, and significant improvements in recruitment and retention rates.
However, the 100:80:100 model is viewed with scepticism in some quarters. There is still doubt that productivity and output would be maintained, or in some cases improved, when workers are working one day fewer per week.
Also, there could be costs associated with the implementation of this work model for front-line roles, such as retail, schools, hospitals and nursing homes. Additional workers may need to be hired, at extra expense, to cover the hours dropped by the existing workforce.
100 years of working 5 days a week
The year 2026 will mark the 100th anniversary of the five-day work week.
It was car maker Henry Ford who reduced[5] the working week in the United States from six days to five. Other sectors and countries followed suit. This was at a time when the average life expectancy of Australian workers was just 55 and households typically only had one bread-winner.
Despite the time saved by the many technological breakthroughs in the past 100 years – from the photocopier, desktop computer and fax machine, to the internet, mobile phones and AI – the average Australian is now working longer hours[6] in paid and unpaid labour than ever before.
The Greens point out Australian society is changing. More women and carers are either in the workforce or would be encouraged into the workforce by more flexible arrangements:
yet we are constrained by archaic labour laws that see the fruits of our efforts swallowed up in profits for bosses and shareholders.
The role of generative AI technologies in the workplace may also deliver benefits to workers. Separate Swinburne research[8] has revealed an increasing expectation among workers that they will receive a share in the time saved by future technologies in the form of improved work-life balance and wellbeing gains.
Time to enter the 21st century
Earlier this year, 200 UK companies[9] signed up to the 100:80:100 model, as part of a campaign to “reinvent Britain’s working week”. Large scale trials are also underway in Canada[10] and several European[11] countries.
The global interest in a shorter working week is not surprising, and has likely been fuelled by the COVID pandemic, which has caused workers and employers to re-imagine their working lives.
If the Greens are in a position to leverage any balance of power after the coming election, it could be Australia’s turn to recognise the conventional five-day working week is no longer fit for purpose.
References
- ^ four-day (greens.org.au)
- ^ Mick Tsikas/AAP (photos.aap.com.au)
- ^ return (www.4dayweek.com)
- ^ research (figshare.swinburne.edu.au)
- ^ reduced (teachingamericanhistory.org)
- ^ working longer hours (futurework.org.au)
- ^ Darren England/AAP (photos.aap.com.au)
- ^ research (figshare.swinburne.edu.au)
- ^ 200 UK companies (www.theguardian.com)
- ^ Canada (4dayweek.io)
- ^ European (www.euronews.com)
Authors: John L. Hopkins, Associate Professor of Management, Swinburne University of Technology
