Launceston City Council Proposes Full-Pay Four-Day Work Week
The City of Launceston is on the verge of becoming the first local government in Australia to implement a four-day work week without a reduction in employee salary. An in-principle agreement has been reached between the Tasmanian council and the Australian Services Union (ASU) for a new Enterprise Agreement.
Details of the Proposal
This innovative proposal would allow full-time employees to work 30.4 hours over four days, replacing the standard 38-hour workweek. According to Launceston City Council, this plan is not merely a compressed work week but represents a genuine reduction in working hours.
Support from Leadership
Launceston City Council CEO Sam Johnson heralded the proposal as a significant advancement in workplace reform. He acknowledged the shifting nature of work and emphasized the importance of well-being, productivity, and sustainability within the public sector. Johnson stated, “We have the history to show that in Australia, we can be global leaders in industrial relations revolution.”
He further cited historical milestones in Australia’s industrial relations, including annual leave in 1906 and the establishment of the minimum wage in 1907. He questioned why the year 2026 should differ in fostering progressive workplace changes.
Key Components of the Agreement
- Improved allowances and leave entitlements for employees.
- Involvement of ASU Tasmania and Victoria branch in collaborative negotiations.
- A vote from 600 eligible council employees scheduled for next month.
- If approved, the agreement would be submitted to the Fair Work Commission and may take effect by July 2026.
Concerns from Business Leaders
While the council’s leadership has expressed optimism, the Tasmanian Chamber of Commerce and Industry raised significant concerns. CEO Michael Bailey argued that the proposal could effectively cut hours by 20% without ensuring increased productivity or better service delivery. He cautioned that this move might lead to adverse effects on essential regulatory services.
According to Bailey, “If service slows down, projects are delayed, costs blow out and investment is put at risk.” He emphasized that the council’s position as a monopoly service provider lacks the option for businesses to seek faster alternatives.
Next Steps
The outcome of the employee vote next month will determine the path forward. If unsuccessful, the council may return to negotiations with the union to address the issues raised. As Launceston considers this groundbreaking approach, the country watches closely to see if this model can lead to enhanced employee satisfaction and organizational efficiency.
