The Australian Council of Trade Unions (ACTU) has reignited its push for a four-day work week, proposing a gradual reduction of weekly hours from 38 to 35 before phasing out the fifth day entirely, with no change to pay or conditions. The proposal was presented at a parliamentary inquiry reviewing National Employment Standards in Melbourne on May Day.
Business Groups React Strongly
Australian Chamber of Commerce and Industry chief executive Andrew McKellar described the proposal as “wishful thinking” and “completely tone-deaf,” arguing that it would impose a huge cost on the economy and be untenable for small and medium businesses. He noted that productivity gains from AI are still far off and should be assessed at an enterprise level before becoming minimum standards.
Business Council of Australia chief executive Bran Black called the idea “magic pudding economics,” warning that legally mandating a four-day week would require a smaller pie to feed the same number of mouths. Australian Industry Group chief executive Innes Willox reiterated his earlier criticism, labeling it an “anti-productivity thought bubble.”
Union Arguments
ACTU president Michele O’Neil argued that Australians deserve fewer working hours, citing Centre for Future Work data showing workers put in an average of four and a half weeks of unpaid overtime annually. She also highlighted the widening gap between productivity and real wages, stating that real wages would need to increase by 10 per cent to catch up with productivity gains since 2000.
O’Neil referred to trials demonstrating that a shorter work week boosts efficiency, productivity, and employee health while reducing burnout and improving retention. The ACTU is also pressing for an extra week of annual leave.
Government and Political Response
Prime Minister Anthony Albanese and Treasurer Jim Chalmers previously shot down the four-day week proposal in August before it could be discussed at a productivity roundtable. Employment Minister Amanda Rishworth cited research indicating that AI is more likely to augment workers’ duties than fully automate them in the medium term.
The debate continues as unions push for significant changes to working conditions, while business groups remain firmly opposed, citing economic pressures and the need for productivity growth.
