The Inevitable Shift to a Four-Day Work Week in Australia: Insights from Oxfam, Unilever, and Bunnings

A top union in Australia has predicted that a four-day work week will soon become commonplace across the country. The Australian Services Union (ASU) stated that the reduced work hours are an appealing alternative for Australians and described the change as ‘inevitable’. The four-day work week is a global movement aimed at reforming long-established working hours, with successful implementations already witnessed in countries like Sweden, Spain, and Belgium.

The model does not involve compressing a five-day 38-hour work week into four nine-hour days, but rather condensing it into a 32-hour week for the same amount of pay. Organizations such as Oxfam and Unilever have already begun testing the four-day work week in Australia, while Findex and Grant Thornton have adopted nine-day fortnights.

Although Bunnings also offers a four-day work week, employees are still required to work a total of 38 hours within the shortened period. As more companies trial the reduced work week without reducing pay, it is anticipated that Australians may soon be working one less day per week.

ASU official Imogen Sturni expressed her belief that the four-day work week will increasingly become the norm, particularly due to the COVID-19 pandemic prompting a reassessment of traditional work practices. Sturni also cited consistent productivity increases seen in trials conducted worldwide as evidence of the positive effects of the reduced work week.

The global push for a shorter work week gained momentum after the COVID-19 pandemic, with employees seeking a better work-life balance. Companies have experimented with different models, such as closing the office on a designated day or rotating workers to ensure business continuity. The most commonly used model is the ‘100:80:100’, wherein employees and their bosses agree to 100% pay for 80% of the work time, while maintaining a commitment to productivity.

ASU is currently negotiating with five to ten other enterprises regarding work agreements involving the four-day work week trial. Anti-poverty organization Oxfam Australia is believed to be the first company in the country to have a four-day week trial written into its workplace agreement. Oxfam Australia’s Chief Executive of Operations, Lyn Morgain, emphasizes the importance of exploring different models that promote a positive work culture, while also ensuring that productivity remains high to support critical work overseas funded by Australian donations.

Morgain highlights that the concept of ‘value’ is central to the adoption of the four-day work week. Through a co-design approach, employees and their bosses can establish an arrangement that optimizes productivity, quality, and worker health and wellbeing. Oxfam Australia, with over 100 employees, is one of the larger organizations undertaking this trial. It is also the first to implement the trial through enterprise bargaining, where wages and working conditions are negotiated at the organizational level.

The push for a four-day work week gained further backing when a parliamentary committee recommended a government-supported trial of the concept earlier this year. The Committee on Work and Care endorsed the ‘100:80:100’ model and proposed several other changes, including a year of paid parental leave and the right to disconnect from work outside of working hours.

Consumer goods giant Unilever conducted a year-long trial involving 500 employees, which is set to end in November. The trial has reportedly exceeded key performance indicators, including revenue growth, indicating its potential continuation. Unilever Australia and New Zealand’s Head of Human Resources, Shruti Ganeriwala, reports a 33% decrease in work-related stress, a 34% reduction in absenteeism, and a 67% decrease in work-life conflict.

Various businesses in Australia have been experimenting with different working arrangements to enhance staff productivity and wellbeing. Findex, an auditing firm, made the nine-day fortnight a permanent arrangement in July following a successful six-month trial. Under this model, employees at Findex Group’s auditing arm, Crowe Australasia, receive every second Friday off in exchange for working extended hours over the nine days. Accounting firm Grant Thornton initiated a similar trial in March, and Bunnings, Australia’s largest retailer, began a four-day work week trial in May. According to Gerard Dwyer, the National Secretary of the Shop, Distributive and Allied Employees Association, Bunnings’ decision marks a significant breakthrough for work-life balance.

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