Launceston Council scraps 4-day work week plan after backlash from business sector
The CEO of Launceston City Council said the reform could still be achieved if "done properly". (ABC News: Morgan Timms)
In short:
Launceston City Council has ditched plans to introduce a four-day work week.
The change would have been a national first for government organisations in Australia — but some stakeholders warned against it and staff were subjected to abuse, the council chief executive says.
What's next?
The council's CEO said Launceston City Council still planned to pursue the reform, but would "build the evidence base required to demonstrate readiness".
A Tasmanian council has ditched "groundbreaking" plans to offer staff a four-day working week following backlash from ratepayers and stakeholders.
Launceston City Council and the Australian Services Union (ASU) came to an in-principle agreement last month for staff to work a 30.4-hour four-day week without reducing salaries.
If the proposal had passed, it would have been the first government organisation in the country to offer a four-day working week with five-day wages.
The proposal was supposed to be voted on by staff this month as part of their new Enterprise Bargaining Agreement (EBA), but they no longer have the chance to endorse it.
Stakeholders in the business sector said a four-day work week would be detrimental to employers and customers. (ABC News: Morgan Timms)
'Unacceptable hostility' directed at staff
After pushback from groups like the Tasmanian Chamber of Commerce and Industry (TCCI), who warned it would result in increased costs, poorer service and pressure on employers, the council has put the idea on ice.
In a statement today, chief executive Sam Johnson said council believed in the model, but public debate had become "increasingly polarised" and resulted in "unacceptable hostility towards staff".
"Our 600 employees are not separate from this community. They are residents and ratepayers themselves," he said.
"Employment conditions should be determined through proper industrial processes — not through social media commentary before staff have had the opportunity to vote.
"We believe in the evidence behind it. We believe in what it represents for productivity, wellbeing and the future of public service. And we believe that, done properly, it is achievable here.
"But reform of this scale must be introduced in a way that endures. It must be supported and understood by the community we serve."
Despite ditching the move, Launceston council CEO Sam Johnson said the reform would be workshopped. (Supplied: Launceston City Council)
The "backdown" was welcomed by TCCI chief executive Michael Bailey, who stood alongside Mr Johnson, the Housing Industry Association (HIA) and Civil Contractors Federation of Tasmania at a press conference in Launceston on Wednesday.
In an earlier statement, Mr Bailey pointed to the TCCI's "strong, coordinated" campaign against the proposal.
"TCCI pulled the business community together — including the HIA, Civil Contractors Federation and Tasmanian Farmers — and the Council has listened," Mr Bailey said.
"We made it clear the 30.4-hour model risked poorer services and higher costs. The new approach is far more balanced."
But the Australian Services Union slammed the "interference of external business groups", arguing the locally grown solution was designed to fix a recruitment crisis.
Council staff were due to vote on the reform this month, before it was abandoned. (ABC News: Luke Bowden)
Business sector 'sabotaged' deal, union says
ASU Tasmanian Branch Secretary Tash Wark said the four-day work week was supposed to be a win for workers and ratepayers.
"It is beyond disappointing that outside groups with no skin in the game have worked to squash a deal negotiated in good faith by the people actually doing the work," Ms Wark said.
"The Business Council of Australia and the Tasmanian Chamber of Commerce and Industry (TCCI) claim to be champions of productivity and competitiveness, yet they have actively sabotaged a deal that delivered both.
"They have turned their backs on a national first, designed to increase productivity and support workers, in order to protect an exhausted status quo instead."
She said the original deal allowed the council to be competitive against private-sector salaries without significant rate increases.
The union's Tash Wark said the reform was designed to increase productivity and support workers. (Supplied: Australian Services Union )
Council to revisit proposal
Launceston City Council is still interested in pursuing the reform.
Mr Johnson said it will be setting up a working group that will undertake economic modelling, service impact analysis and "build the evidence base required to demonstrate readiness".
"When we return to the bargaining table in approximately 18 months, I want us to do so with community understanding, business support, strong economic data and a model that answers the legitimate questions that have been raised," Mr Johnson said
TCCI chief executive Mr Bailey said the chamber would help figure out if a shorter week could work.
"We'll openly approach this over the next two years," Mr Bailey said.
"Looking at if a 30.4-hour week can actually deliver the sort of productivity returns that would justify it.
"It's about getting the evidence behind us first before you make this sort of a step."
The new EBA offer will still allow staff to work four-day weeks or nine-day fortnights if they wish, but that will be over a 38-hour week.