Aussie workers need 5th week of annual leave, unions say

Unions will argue for an increase in annual leave entitlements from four to five weeks for full-time Australian workers, as Parliament considers changes to the National Employment Standards.

The House of Representatives Standing Committee on Employment, Workplace Relations, Skills and Training is conducting an inquiry into the operation and adequacy of the National Employment Standards under the Fair Work Act, following a referral from Minister for Employment and Workplace Relations Amanda Rishworth.

As part of that parliamentary inquiry, Australian unions will campaign to secure an extra week of annual leave for working Australians, arguing that such entitlements should be increased to counter rising work pressures and the long hours of unpaid work that Australians regularly perform.

It would, the ACTU noted in a statement, be the first increase in the minimum standard since the mid-1970s, and would also bring Australians’ entitlements closer in line with those of many European countries.

While Australians work longer hours, the gap between productivity and real wages has widened, it said, referencing analysis by the Centre for Future Work, noting that real wages would need to increase by an additional 10 per cent to catch up to increases in productivity since 2000, and close the gap that has opened up over the last two and a half decades.

Allowing workers an extra week of leave, the ACTU said, would help with closing that gap, and add an extra two per cent to employment costs that would be offset by a reduction in employee turnover and time lost to injury and stress.

ACTU secretary Sally McManus said that while the four-week annual leave standard was set 50 years ago, Australians’ long hours have only increased over time.

“Extra leave will decrease stress and burnout. Australian workers already do an extra four and a half weeks of unpaid work on average every year. Getting back one of these weeks is fair and reasonable. It will mean a better rested and happier workforce,” she said.

“Younger workers – from 18 to 24 years old – most urgently need to see this burden start to lift. They are the ones doing the most unpaid work – an average of 6.4 weeks of free work for their employers each year.”

“The majority of European countries have already moved beyond four weeks. Countries like Austria, France and Spain have already recognised the importance of rested, healthier employees and have higher rates of annual leave than Australia does. They are some of the most productive and competitive economies in the OECD,” McManus continued.

“It’s time Australia caught up, our annual leave has been frozen at 4 weeks since the mid-1970s, half a century ago. Most workers weren’t alive when annual leave last went up in Australia.”

“Extra leave will also start to address the productivity gap that workers face. The average Australian would need to see their real wage increase by 10 per cent to make up the difference between productivity improvements and real wage growth since 2000. An extra week of annual leave would help to reduce that gap,” she concluded.