We all need to create sustainable workplaces that are ready to meet an increasing range of social, economic, and environmental challenges.  Research has shown us that across all sectors, workers want to retain the valuable benefits gained through flexible working practices adopted during and after the COVID pandemic.

Reduced hours or days represents an opportunity to continue to explore new ways of working that can enhance mental and physical well-being without sacrificing quality and productivity.

We know from international trials that condensed working hours provide key benefits for workers.

Common findings across studies conducted in Ireland, Iceland and the UK have all found that workers experienced improved levels of health and well-being, reduced absences relating to illness, occupational stress and burnout, and increased job satisfaction.

Similarly, trials conducted in Australia, such as the recent well-publicised trial undertaken by Medibank, have shown that sick leave, work-related stress and work/life conflict fell by two thirds.

Relevance for Public Sector Workers

CPSU believes protecting the health and well-being of public sector workers is more crucial than ever given the current environment of fiscal constraints and workforce cuts taking place across the Victorian Public Service and the wider public sector.

We know that many workers are working longer hours to manage increased workloads.

The People Matter Survey (2021) found that workload was within the top five drivers of negative wellbeing for public sector workers.  25% of respondents who intended to leave their organisation cited excessive workload as a cause.   

We know that mental health claims under WorkCover have increased significantly in recent years due to higher levels of occupational stress, burnout and vicarious trauma and are approximately three times more common than in the private sector.

And we know that flexibility is a key factor in improving levels of participation for women and from people from a range of marginalised backgrounds, who are often employed in lower grades across the service with lower levels of job satisfaction.

If we are to build and maintain a sustainable public sector that is fit for purpose and responsive to the needs of the community it serves, workers need to be supported to deliver their work in ways that protect and improve their current levels of health, well-being and satisfaction.

Flexibility and the right to disconnect from the work environment is crucial in maintaining a responsive public sector into the future.

Member Priorities

Prior to the commencement of work developing our new Agreement - the Victorian Public Service Enterprise Agreement 2024 – we canvassed our membership on a range of flexibility measures to determine our priorities for negotiations.

While salary increases were understandably the first priority for the majority of members given cost of living concerns, the issue that was ranked second most important in our members’ top five priorities was the opportunity to work a four-day work week without any loss of pay.

International trials

To prepare for discussions with the Victorian Government on the potential of trialling a four-day work week in the VPS, we reviewed examples of successful implementations across public sector workforces internationally.

•    Iceland Public Sector Trial

The first jurisdiction to trial a reduction of hours across a five-day working week was Iceland in April 2017. 

A pilot project across four worksites reduced hours from 40 to 36 without a reduction in pay, and measures were determined to investigate how the reduced hours impacted the quality of service provided by the participating agencies in immigration, police and customs.

A further set of measures was developed for employee wellbeing and job satisfaction. 

Comparative studies were also set up with other workplaces that were not selected to participate in the pilot.

The outcomes of the pilot evaluated after six and twelve months showed that the reduction of hours had a positive impact on the daily wellbeing of employees, while no negative impacts were found across economic indicators that measured sick leave, productivity and quality.

Employees surveyed on their experiences confirmed that mental and physical symptoms of stress and exhaustion had been reduced and job satisfaction improved.

In comparison, evaluation found at both the six and twelve-month marks at non-participating workplaces that workers there fared worse across the same indicators.

•    Scotland Public Sector Trial

Another example of a public sector trial we are following closely is a twelve-month pilot currently underway in the UK.  Commencing in October 2023, the South of Scotland Enterprise – the region’s economic and community development agency – began piloting a reduced pattern of hours for staff at the same pay.

A key element of the pilot is a fully inclusive approach to flexibility to learn how a reduced hours model could operate, for example, if employees prefer, they have the option of working five shorter days rather than four full days.

The trial forms part of a broader commitment to a Scottish Government four-day work week pilot, which is set to include a selection of other public sector bodies later this year.

•    Victorian Public Service Trial

Based on the importance of this issue to our members, and the evidence from trials that clearly illustrate the benefits of reduced working hours, CPSU commenced discussions with the Victorian Government on the feasibility of a similar trial within the Victorian Public Service.

As such, a trial or pilot of a four-day work week was a key component of our Claims that guided negotiations for our new 2024 Agreement.

CPSU proposed piloting a 30.4-hour work week arrangement across a range of working environments, including full-time and part-time workers, and in shift and rostered work environments.

The pilot would support existing Flexible Work principles, recognising that productivity comes in different forms and that work-life balance is necessary to maintain employee mental and physical wellbeing.

It would also recognise that exploring new and modern ways of working can help place employers at the forefront of modern employment standards and that these can be beneficial to employee and employer alike, without sacrificing quality and productivity.

As a result of our negotiations, CPSU and the Victorian Government have agreed to work in partnership on a joint feasibility study to explore alternative ways of working.

The study’s objective will be to investigate ways of:

•    Enhancing employee health and wellbeing
•    Supporting the Right to Disconnect provided for in the new Agreement
•    Improving work life balance and reducing sickness absences, stress and burnout
•    Improving job satisfaction, and attraction and retention of staff
•    Addressing gender equality concerns, and supporting working parents and those with caring responsibilities
•    Working towards a more sustainable work environment
•    Having a positive impact on culture and employee engagement, which in turn leads to improved productivity and service quality

The parties will establish a joint steering committee to oversee the study and will develop flexible models on how a four-day work week, or alternative models of work, could operate.

The study will commence in 2025 and run for a 12-month period across a range of Government programs to ascertain the optimal outcome for employees and Government service delivery.

An outcomes report will provide insight into how a new model of working arrangements could be implemented on a case-by-case basis, with a view to including this in the next Enterprise Agreement in 2028.  

It is our belief that reduced hours or a shorter working week will help tackle many of the challenges public sector workers are facing in the current environment.

It will also have positive effects across a range of measures relating to health, community, gender equality, the environment and the economy. 

Furthermore, it could lead to increased productivity and a renewed commitment to delivering Government services to the people of Victoria.