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Australian unions eye three-day week as AI reshapes work

• By Ria Duneja
Australian unions eye three-day week as AI reshapes work

Australian unions are intensifying calls for shorter working weeks, with discussions around a three-day work week gaining momentum as artificial intelligence (AI) transforms workplaces and raises concerns about future job losses.

The push marks the latest chapter in a long-running debate over working hours in Australia, where unions argue that productivity gains generated by AI should be shared with workers through reduced hours rather than resulting in redundancies.

According to a report by the Parliament of Australia, interest in alternative work arrangements has accelerated since the COVID-19 pandemic normalised flexible working practices. While much of the discussion in recent years has centred on four-day work week trials, rapid advances in AI are now fuelling conversations about even shorter working models.

From four days to three

The current union-backed campaign remains focused on securing a standard four-day week, a 35-hour work week, or a nine-day fortnight without reductions in pay.

However, reports by 7NEWS Sydney indicate that broader discussions are emerging around a three-day work week as AI-driven automation continues to reshape industries. 

Union leaders argue that technological gains should translate into more leisure time and improved work-life balance for employees.

The Australian Manufacturing Workers Union (AMWU) and the Australian Nursing and Midwifery Federation (ANMF) are among the organisations advocating for reduced working hours. Their position is that AI has the potential to significantly boost productivity, allowing workers to maintain output while spending fewer hours on the job.

Labour advocates also contend that reducing weekly hours could help distribute available work more evenly across the workforce, mitigating the risk of widespread job losses as businesses adopt AI technologies.

History of reduced hours

The campaign echoes earlier union-led movements that fundamentally reshaped Australia's working landscape.

In the 1800s, Australian workers commonly laboured up to 14 hours a day, six days a week, with few workplace protections. The eight-hour day movement emerged in the mid-19th century, championed by unions that argued workers deserved time for rest, recreation and family life.


A landmark victory came in 1856 when stonemasons in Melbourne secured an eight-hour working day while retaining their existing pay rates. 

The fight continued well into the 20th century. Victoria and New South Wales passed Eight Hours Acts in 1916, while the Commonwealth Arbitration Court approved a 40-hour, five-day working week in 1948.

Further reductions followed in 1981 when a union campaign led by metal workers secured a 38-hour working week, which later became the national standard.

Today, Australian employees generally work up to 38 hours a week under workplace laws, with additional hours often attracting overtime payments, penalty rates or time off in lieu.

Mixed evidence

While advocates point to productivity and wellbeing benefits, evidence surrounding shorter working weeks remains mixed.

The Parliamentary report noted that four-day work week trials conducted in Australia and overseas have produced varying results. 

Supporters cite improvements in work-life balance, employee wellbeing and organisational efficiency.

However, the report also identified challenges, including compressed workloads, additional staffing requirements, higher labour costs and concerns over whether such arrangements can be implemented equitably across different industries.

Sectors that rely heavily on customer-facing roles or continuous operations may face greater difficulties in adopting significantly reduced working hours.

Economic concerns

Business groups and critics have warned that cutting standard working hours could place significant financial pressure on employers, particularly small businesses already grappling with rising costs and labour shortages.

Questions also remain over how industries such as healthcare, retail, hospitality and manufacturing would manage staffing requirements under a substantially shorter working week.

Nevertheless, unions argue that the conversation is a natural progression of Australia's labour history. Just as previous generations fought for the eight-hour day and the 38-hour week, they believe the rise of AI presents an opportunity to redefine work for the modern era.

As AI adoption accelerates across the economy, the debate over whether Australians should work four days, three days, or fewer hours overall is likely to become a central issue in the future of work.