Canberra would become one of the most progressive cities in the world if it adopted a four-day working week and could leverage the different work-life balance to attract quality staff, the ACT government believes.
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But the territory's public service would face increased costs with the "enormous change" and other challenges to implement the shorter week, which is being considered by a Legislative Assembly inquiry.
The Chief Minister, Treasury and Economic Development Directorate said, in a submission to the inquiry, the government was mindful of the clear benefits the shorter working week would provide.
The shift would also make it easier for the ACT public service to retain staff and attract high quality talent into professional areas that were projected to be in high demand in coming years.
"A four-day working week gives time back to people, which can reduce work-induced stress and related consequences, potentially impacting the societal rising cases of anxiety and depression, loss of sleep, poor dietary and exercise habits as well as child health, wellbeing, and behaviour," the directorate's submission said.
The government would also need to consider whether services traditionally offered five days a week would continue to be offered in that way, and how staff would be rostered to allow this.
The four-day working week with no reduction in pay would also force a rethink of timekeeping, casual pay rates and the way leave was accrued.
"If this model is implemented, there would be significant financial implications due to the need for essential and other services staffing to be increased to maintain service operating hours," the government's submission said.
"It is expected the total wage costs in the [ACT public service] will increase and there would be significant financial cost in operationalising the model across the [service]."
The ACT public service also recognised that "modern contemporary work practices are moving away from traditional time-based record keeping ... and are transitioning to a model which is more outcomes focused", with the COVID-19 pandemic accelerating the shift.
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The Legislative Assembly's committee on economy and gender and economic equality is considering the future of the working week in an ongoing and self-referred inquiry.
The committee's 69-page discussion paper, published in June, said there was merit in revisiting the conversation about the benefits and disadvantages of a shorter working week or a reduction in work hours.
The discussion paper pointed to research that explored potential increases to productivity, the impact on underemployment and unemployment and other gender-based outcomes.
"A reduced work week could support the achievement of an equal workplace - on the basis that the increased free time that results - provides for employees to devote more time to family responsibilities and be better placed to manage care and work commitments," the discussion paper said.
The government's submission also noted that reducing the working week might alleviate parents' work stress, which would benefit their children.
"It is well recognised that children's health, wellbeing and development outcomes can be enhanced through policies that reduce parents' job-related stress and increase parents' ability to pay attention to and respond to their children's needs," the submission said.
However, the directorate said significant consultation would be required with staff, unions and other representatives before changes could be made to standard working hours for public servants.
The Public Sector Management Act would need to be amended and 18 enterprise agreements would need to be endorsed by the majority of the workers covered and approved by the Fair Work Commission.
"The evidence led in the discussion paper is limited and while productivity may increase, it may not increase sufficiently or with enough longevity to fund this model in the longer term," the government's submission said.
"In addition, in many frontline areas staffing will necessarily have to be increased to ensure adequate roster cover and service delivery is maintained."
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