Huge four-day work week win for Aussies: ‘Significant milestone’

A finance company has offered its employees a four-day working week, an Australian first for the sector.

Asset manager Insignia Financial has signed an enterprise bargaining agreement with the Finance Sector Union, which has been ratified by its members, and will also introduce safeguards on the use of artificial intelligence.

The deal also retains work-from-home privileges and provides a $1,200 payment, in addition to a 9.5 percent pay increase over three years, starting with a four percent annual pay increase for employees earning less than $115,000 (basic salary plus super).

A pilot program of four days a week will be implemented for a select group of employees during the term of the enterprise agreement, but details are yet to be determined by Insignia Financial, which will consult with the union.

Currently, employees must spend 40 percent of their time in the office and the company can only change the arrangement with six months’ notice.

Mel Walls, head of Insignia Financial, said The Australian the agreement was ‘an important milestone in the integration process of our organization’.

“The new enterprise agreement delivers a range of new and enhanced benefits that we believe reflect a contemporary workplace, such as a greater commitment to flexibility provisions relating to hybrid working,” she said.

FSU national president Wendy Streets said the deal reflected the priorities of today’s workers.

“Employees consistently tell us they value flexibility in the workplace, and this agreement delivers significant improvements and will give employees the opportunity to work in a way that suits them – including more time at home if they want,” she said .

“Insignia’s recognition that a four-day workweek is an emerging trend and should be tried is an important step forward and a win for Insignia’s employees. It will enable them to play a meaningful role in the evolution of workplace flexibility in our industry.”

The FSU said the deal would ensure that even if Insignia Financial employs more AI, there will always be a human making the final call in a decision-making process.

Health insurer Medibank, which employs almost 4,000 employees, announced on Wednesday that it would double the number of employees who are allowed to work four days after a six-month trial period in which 250 employees received the shortened working week.

At the end of October, Medibank switched employees to a 100:80:100 model, meaning 100 percent of wages are paid, 80 percent of the time, at 100 percent productivity.

The move to a four-day working week is a trend being explored by a number of employers, including health insurer Medibank and even retailer Bunnings

Medibank head of people and sustainability Kylie Bishop said working fewer hours has had some benefits.

“We have seen significant and sustained improvements in employee engagement, job satisfaction and participant health and wellbeing, while maintaining business performance and customer outcomes,” Ms Bishop said.

‘The shortened week allowed for a concentrated effort in planning and clearer coordination and agreement on the results and the way the work is carried out.’

The trial was part of the 4 Day Week Global movement, which was founded by New Zealand entrepreneur Andrew Barnes after his financial services company Perpetual Guardian started working fewer hours in 2018.

Wesfarmers-owned Bunnings has also trialled different working models, such as a four-day week or a nine-day week, a first for Australian retail.

The move comes as many employers begin to restrict work-from-home privileges, including major betting companies Tabcorp and the NSW Government.