Discussion Paper On Working Time
Discussion Paper On Working Time
Date: 01 April 97
Author: ACTU - Tim Harcourt and Sue Kenna
Source: D No. 39 of 1997
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DISCUSSION PAPER ON WORKING TIME
This discussion paper is a background research resource for unions conducting membership surveys and policies on working time issues.
Contents
1. What is Happening to Working Time - The Evidence
1.1 Employment Status
1.1.1 Full-Time and Part-Time Employment
1.1.2 Gender
1.1.3 Casual Employment
1.2 Hours Worked
1.3 Employee Preferences on Working Hours
1.4 Enterprise Bargaining
1.4.1 Hours of Work
1.4.2 Overtime
1.4.3 Flexibility
1.4.4 Work and Family Responsibilities
1.4.5 Work Intensification
1.4.6 Health and Safety
1.5 Summary
2. What are the Issues?
3. What Should Unions Do?
3.1 Part-Time Employment - Safeguards/Protections
3.2 Premium on Hourly Rate
3.3 Annualised Salaries
3.4 Employer On-Costs - Payroll Tax/Workers Compensation
3.5 48/52 Scheme
3.6 Reduced Standard Hours Per Week
3.7 Maximum Hours - Overtime Cap
3.8 Increased Leave - Paid and Unpaid
3.9 Early of Phased-In Retirement
3.10 Job Sharing
3.11 Other Measures
4. Conclusion
5. Attachment - Case Studies
Australian Education Union
Australian Manufacturing Workers Union
Australian Services Union
Liquor and Hospitality Miscellaneous Workers Union
WHAT IS HAPPENING TO WORKING TIME - THE EVIDENCE
The standard model of working time and associated industrial arrangements assume a standard full-time working week of 38 hours. Entitlements to long service leave and superannuation have been based on this assumption. So have calculations of overtime and penalty rates based on what is considered 'ordinary hours'. However, the statistical data provided by ACIRRT among others shows how much has changed in the last three decades. There have been significant changes to full-time, part-time, casual status, hours of work, access to paid overtime, increases in unpaid overtime etc. There are now a diversity of working arrangements in the Australian labour market. An overview of the evidence is provided in the following Tables and Charts.
Employment Status
Full-Time and Part-Time Employment
Table 1 shows how the Labour Market changed between 1966 and 1995. It illustrates:
• the increase in the female labour force participation rate (LFPR) 36.6% in 1996 to 53.3% in 1995, with a fall in the male LFPR from 84.2% to 73.3%; [Panel 1];
• the decrease in the full-time share of total employment from 90% in 1966 to 75.2% in 1995 (75.3% in 1996 - ABS Cat. 6203.0); [Panel 2];
• the increase in the part-time share of total employment from 10% in 1966 to 24.8% in 1995 (24.7% in 1996 - ABS Cat. 6203.0); [Panel 2];
"Male, full-time, permanent work is declining - female, part-time, casual work is growing"
Gender
Tables 2 and 3 and Charts 1 and 2 show the break down of employment by gender. Table 2 shows:
• the fall in the share of male full-time employment from 68.6% of total employment in 1965 to 50.3% in 1996; [Column 1];
• the rise in the share of male part-time employment from 2.5% in 1965 to 6.5% in 1996; [Column 2];
• the rise in the share of female full-time employment from 22.3% in 1965 to 25% in 1996; [Column 3];
• the rise in the share of female part-time employment from only 6.5% in 1965 to a significant 18.1% in 1996 - the female part-time share in 1965 is the same as the male part-time share in 1996; [Column 4];
• the rise in the total female share of employment from 28.8% in 1965 to 43.1% in 1996.
This is also shown in Charts 1 and 2.
"The female share of employment is growing especially female part-time work."
Table 3 shows Australia's position relative to other industrialised economies. Australia's part-time share of 24.8% of total employment in 1995, compares with an OECD average of 17.9%. The only OECD countries with a part-time share greater than Australia's are the Netherlands (37.4%), Iceland (30.7%), Switzerland (28.3%), Norway (26.5%), and Mexico (26.2%).
"Australia has one of the highest levels of part-time work in the OECD."
Casual Employment
The following data show the growth of 'casual' or 'temporary employment'.
Chart 3 (from Campbell (1996)) shows the growth in casual employment since 1982. It shows the growth in casual employment as a proportion of the employed labour force from 10.8% to 20.1% over 1982 to 1995. Chart 4, also from Campbell (1996), shows the fall in full-time permanent employees over the same period. The level of casualisation in Australia has also grown in terms of other industrialised economies. Table 4 shows the incidence of temporary employment by age and gender.
The precarious employment status in terms of casualisation and temporary work in Australia is not shared by the majority of industrialised countries. (see OECD, 1996).
Table 5 shows gender breakdown. It shows that 78.8% of males had permanent status, compared to 68% of females in August 1996.
Table 6 shows unionisation data. It shows that permanent employees are more likely than casuals to be unionised by a ratio of almost 3:1 for both males and females.
The evidence shows that casual and part-time work is not always 'by choice'.
"Australia has a high level of casual or precarious employment compared to other OECD countries."
Table 1 (panel 2) showed the increase in the proportion of part-time workers wanting more work. In August 1986, 16.9% of part-timers wanted "more work", whilst in 1995 this category increased to 28.3%. Similar evidence is shown in terms of casual employees who would 'prefer' permanent status. This is shown by Romeyn (1992) and Simpson (1994). For example, Simpson shows that 41.6% of casual workers preferred permanent work, compared to 50.6% who were satisfied with casual status in August 1986 (see Simpson 1994, p22). The data on preferences for casual versus permanent work is shown in Chart 5.
Similar evidence exists for part-time workers wanting to work full-time. Data for eleven European union countries surveyed is shown in Table 7. The OECD reported that 30% of part-time workers would have preferred to work full-time. In turn it was also reported that 21% of full-time workers preferred part-time work. (OECD, 1996).
"Many part-time and casual workers want more work."
Hours Worked
Associated with changes in employment status have been changes in hours worked. There has been a decline of the 'standard working week' upon which most of Australia's industrial regulation is based. There are now a variety of working arrangements worked by Australians.
Charts 6 and 7 show the current distribution of working hours in Australia.
Chart 6 shows that only 36.5% of the labour force (3.2 million workers) worked standard hours in August 1995. Other observations of Chart 6 include:
• 2.6 million workers work overtime, of which 0.9 million work paid overtime (10.3% of the labour force) and 1.7 million work unpaid overtime (19.3% of the labour force);
• 0.25 million workers (2.8% of the labour force work full-time and have a second job);
• of the 2 million part-time workers, 1.5 million are happy working part-time (16.5% of the labour force) whilst 0.58 million want to work more hours (6.5% of the labour force);
• there are a large number of workers who are unemployed and therefore working zero hours a week (currently 8.8% of the labour force - as at February 1997, ABS Cat. 6203.0).
"Many Australians are working too many (unpaid) hours others are not getting enough work."
Chart 7 shows the increase in the gap between average weekly hours worked and average paid overtime hours worked by full-time employees. It shows the growth in unpaid overtime.
Tables 8, 9 and 10 show the industrial and occupational breakdown in hours worked.
Table 8 shows the industrial composition of hours. This was compiled by the ABS and shows changes in hours worked between 1989 and 1995. Average hours worked per week were highest in Mining (43.2 hours) Agriculture, Forestry and Fishing (42.9 hours) and Transport and Storage (40.3 hours).
Table 9 shows the breakdown by industry of ordinary time hours and paid overtime. It shows the large amount of overtime in mining, manufacturing, construction, and transport and storage. These industries are also among the better organised. Overtime earnings for employees in these industries can be extensive. ACIRRT estimates that on average, overtime earnings account for about 25 per cent of wage related income for those people working overtime.
Table 1, panel 7, shows the distribution of hours by occupational group 1966-1985. It shows the increase in the share of total hours by management and para-professionals.
Table 10 shows the distribution of overtime. It shows that management and professionals work the longest hours, but trades, plant and machine operators also have high proportions of workers who work excessive hours. It is noticeable that a large number of salesworkers and clerks work extra hours that are unpaid.
"Many Australian workers rely on overtime for their regular income."
International evidence on working hours is shown in Table 11 and Chart 8.
Table 11 shows hours actually worked per week in manufacturing (1984-1994). This was compiled by the ILO's 'Conditions of Work Digest - 1995'. It shows Australia to have experienced an increase in working hours in manufacturing over the period. Its average hours actually worked in manufacturing was below Hong Kong, Mexico, Singapore, USA and New Zealand, but above most European countries.
Chart 8 shows the faster reduction in working hours in Europe relative to North America among the OECD countries.
Employee Preferences on Working Hours
Tables 12 and 13 relate to employee preferences on working hours.
In terms of employee preferences, ACIRRT/Newspoll conducted a survey which found that 27% of employees would like to work fewer hours. The results of the survey are shown in Table 12. The results showed differences across occupational groups and employment status. For example:
• 33% of full-time workers would prefer to work fewer hours compared to 10% of part-timers;
• 35% of professional/managerial employees indicated a wish to work fewer hours compared to 10% of manual workers;
• those on large household incomes (professional and managerial) preferred to work fewer hours;
• older workers preferred to work fewer hours compared to younger workers.
Given that those who wanted to work fewer hours, mainly worked unpaid overtime, it is clear that preference to shorter hours should be analysed in terms of trade-offs for earnings.
In terms of international evidence, Table 13 from the ILO shows working time preferences in Europe. The table shows a willingness to work different hours depending on the schedule involved, i.e. a majority were agreeable to variable working time or changing day-shifts but against night shifts and Sunday work that may interrupt family/leisure time.
"Many workers would like to work fewer hours or different hours depending on income."
Enterprise Bargaining
Hours of Work
Hours of work arrangements have been prominent in enterprise agreements. In 1995, hours arrangements were the issue most likely to be included in an enterprise agreement, [DIR, 1996].
Table 14 shows the employment conditions covered by Federally registered agreements in 1995.
Hours of work provisions included:
• provisions for total hours;
• flexible working hours;
• meal breaks;
• rostered days off;
• span of hours;
• rest breaks;
• overtime, and
• shift work.
Overall, 65% of agreements contained some form of hours of work provision.
Table 15 shows the percentage of workers reporting a change in weekly hours over the last 12 months and Table 16 shows the breakdown by gender.
Though 66% of workers surveyed by DIR reported that their hours had not changed in the 12 months to December 1995, where changes had occurred, workers were likely to report an increase in hours.
• 25% of workers reported an increase in hours;
• 27% of women and 24% of men reported an increase in hours in the 12 months to the end of 1995.
This slightly higher incidence of increase in hours for women workers is reflected in the breakdown by industry, [Table 17].
There were distinct increases in hours in:
• education (36% of workers);
• accommodation, cafes and restaurants, (33%);
• cultural and recreational services, (31%).
"Hours of work have increased.especially for women workers in service industries."
Tables 18 and 19 show the changes reported to hours and rates of pay, by gender and type of agreement.
• Men were more likely to report a wage increase in the 12 month reporting period than women (46% compared to 39%);
• Amongst workers reporting an increase in weekly hours, men were more likely to also report an increase in wages (58% compared to 55% for women).
Overall, women appear to be more disadvantaged in the trade-off between hours and wages than men. Industries such as hospitality and retail - where hours have increased and/or are expected to be more flexible - are dominated by women workers. [Charlesworth, 1996; Probert, 1993].
The equity implications of increasing working hours must be addressed by unions.
"Women appear to be disadvantaged by the wages/hours trade off.especially in service industries."
Overtime:
The existence of paid or unpaid overtime will also affect the relationship between hours and earnings across industry.
Table 20 depicts overtime provisions in enterprise agreements, by industry, [ADAM, Number 8, March, 1996].
• At March 1996, 16.1% of agreements contained time-off-in-lieu provisions, 7.8% of these provided for time to be taken at ordinary rates and 8.3% at overtime rates;
• Time-off-in-lieu at ordinary rates was most common in Finance, Community Services and Food Beverage and Tobacco Manufacturing;
• Time-off at overtime rates was more likely to be provided in Transport and Storage and Wholesale and Retail Trade industries.
Flexibility:
The degree and diversity of hours arrangements has implications for employment security, the health and safety of workers and the ability of workers to balance their work and private lives.
The new flexibility in working time arrangements can be detrimental to the well-being of workers.
Around 3/4 of enterprise agreements negotiated in 1995 contained flexible working time arrangements, [Heiler, 1995].
These arrangements included:
• flexibility in starting and finishing times
• averaging of hours
• increasing the span of hours
• changes to rostered days off
• flexibility in breaks
• shift work provisions
New flexibilities have also been prompted by the facilitative provisions available in awards, as a result of the Third Safety Net and Award Review (s. 150A) [Print M5600], and the Full Bench decision in the Personal Carers' Leave Test Case.
Work and Family Responsibilities
The proportion of enterprise agreements containing family leave provisions increased from 17% in 1994 to 22% in 1995, [Table 14].
More women (80%) than men (64%) were covered by specific family leave provisions.
Despite the growth in provisions for carers' leave, the DIR survey suggests that many workers are not satisfied with the balance between their work and family responsibilities.
Work Intensification
Changes to hours, the extent and use of family leave provisions and work intensification are closely related.
The DIR AWIRS (Australian Workplace Industrial Relations Survey) asked workers if work effort, stress, or the pace at which they do their job had increased in 1995.
- 58% of workers reported that their effort had increased in the last 12 months;
- 50% reported an increase in stress, and
- 46% reported an increase in pace.
Overall, 28% of workers had a high score on the DIR index of work intensification over the 12 months to the end of 1995. [Table 21].
There was a correlation between workers with a high score on the index and those reporting a decline in satisfaction with the balance between work and family life.
Employees who had a high score of work intensification were more than twice as likely to report their satisfaction with the balance between work and family had declined.
The DIR findings relating to workers' experience at the workplace, reinforce the need for a broad approach to working time arrangements. Despite an increase in work and family provisions, the overall increase in working hours and changes to working time arrangements have led to work intensification and increased stress for workers.
"Work intensification and work related stress has increased."
Health and Safety
The health and safety implications of excessive working hours are borne out by the results of the DIR Survey for 1995, in respect of work intensification and stress.
However, there is little evidence to suggest that occupational health and safety provisions are adequate. In October, 1996, ACIRRT found that occupational health and safety provisions were becoming less common in enterprise agreements, [ADAM, Number 10, October 1996].
An examination of agreements from the Labour Information Network (LIN) database also suggest a decline in health and safety provisions. Of around 600 agreements due to expire in the first quarter of 1997, only a handful had any occupational health and safety provision.
The increased pace, work effort and stress reported by workers in AWIRS make it imperative that occupational health and safety provisions are built into negotiations over working time arrangements.
Summary
In summary, the statistical evidence shows:
• the diversity of working arrangements in Australia in the 1990s;
• the decline in full-time male employment working 'standard' hours;
• the differences in hours worked and employee preference across industry;
• the reliance of employees in some industries on paid overtime for their regular income;
• the divergence between the regulation of working time and the reality at the workplace.
WHAT ARE THE ISSUES?
The following key issues can be drawn from the evidence on working time:
How can hours of work be more equitably distributed?
How can casual and part-time workers access more (paid) hours without harming paid, full-time employment?
How can flexible arrangements continue to be provided without losing protections achieved through provisions such as parental leave and carer's leave?
How can those workers working too many (unpaid) hours receive adequate remuneration without affecting those relying on regular (paid) overtime?
How can flexibility be provided without trading off income and other entitlements/conditions?
How can we regulate casual employment to clearly distinguish it from part-time employment and provide both casual and part-time workers with appropriate protections?
How can agreements be made for guaranteed and consistent hours for part-time workers, given the deregulation of part-time provisions under the Workplace Relations Act 1996?
How can part-time work be provided for mature workers without jeopardising their pension/retirement arrangements?
Some possible solutions for unions to undertake are offered in Section 3.
WHAT SHOULD UNIONS DO?
Unions need to formulate strategies for working time issues for both the award and enterprise bargaining arrangements. Unions need to protect the existing rights and conditions of workers whilst providing opportunity for those not receiving certain or adequate paid working hours. some strategies are suggested below. The Principal Strategy is for unions to conduct membership surveys to see:
• how members regard current working time arrangements;
• what has occurred in working time in their workplace (ie. has there been an increase in hours, change in shift arrangements etc.);
• what are members preferences in terms of changes to working hours.
It will be important to understand the implications for take-home pay of any change contemplated.
Some strategies are tentatively suggested below - to be discussed in the context of the particular occupation, industry, union concerned and the results of the membership survey.
Part-Time Employment - Safeguards/Protections
Unions have attempted to provide permanent part-time work on a pro-rata basis. (see ACTU, 1990). Unions have also agreed to facilitative provisions to provide flexibility in part-time work. However, caution should be exercised such that 'flexibility' is not used to undermine award obligations. For this reason, the safety nets detailed by the AIRC Test Case should be applied. For instance, in its decision to grant carers' leave in the Family Leave Test Case, the IRC detailed certain safeguards in respect of part-time work.
The gaps in awards created by the provision of allowable matters under s.89A of The Act will require a more viligant pursuit of working time arrangements through EBAs. Training and consultation with workers will be crucial to ensuring non-discriminatory and relevant working time arrangements.
Unions should prepare guidelines for officials and delegates seeking to negotiate working time arrangements and should consider the needs of casual, part-time and shift workers by perusing the issues outlined in this paper.
Around one third of workers are covered by individual contracts. A recent study by ACIRRT found that individual contracts reduced entitlements in WA. There is clearly a greater risk of employment-orientated flexibility occurring under individual contracts. The fact that such contracts will take precedent over awards requires greater encouragement of collective bargaining wherever possible. Where individual contracts are prevalent workers should be warned of the pitfalls of many employer generated flexibilities.
At the enterprise level, unions should negotiate guidelines for provision of part-time and casual work. These should be comprehensive and include provisions relating to conversion from casual and full-time, to part-time work.
The following factors should be built into part-time work provisions:
• A clear definition of part-time work (eg: employment less than 38 hours per week, on a continuous and regular basis );
• Clear terms of engagement - that is, on a weekly or fortnightly basis, like full-time workers and clearly not an hourly basis like casuals;
• Where appropriate, minimum and maximum hours should be considered; this will be more important since the enactment of the Workplace Relations Act, as the Industrial Relations Commission will no longer be able to set such limits;
• The permanent nature of true part-time work should be fully prescribed; this should mean stable hours, regular starting and finishing times, and reasonable notification of changes in rosters. Irregular hours and rosters should only be associated with casual work;
• Wages and conditions should be as for full-time workers, provided on a pro-rata basis, and including allowances, overaward payments etc. Minimum payments should be negotiated;
• Part-time workers should have access to shift work, penalty and overtime payments;
• Part-time workers should be provided with the same opportunities for training, promotion and career advancement;
• Redundancy provisions should apply to part-time workers, on a pro rata basis;
• Part-time work should be voluntary.
If part-time work is adequately regulated - providing a consistent pattern of hours and minimum and maximum hours of work - casual work should be limited to true casual jobs of an irregular and intermittent nature.
Premium on Hourly Rate
This is a possible way to discourage employers from hiring employees for a small and variable number of hours worked below an appropriate level.
For example a provision could be negotiated to have employers pay a premium when there is uncertainty for employees. For example if an employee is not given adequate notice of a roster or shift change then a premium would apply. This would also provide an incentive for employers to be efficient in rostering work. The premium on the hourly rates need to be carefully calculated so as not to provide inequitable outcomes by affecting work incentives or disincentives.
Annualised Salaries
Provisions for annualised salaries can have a positive affect on the relationship between working time arrangements and earnings.
Annualised salaries seek to average workers' earnings over the course of a year and spread the payment of a flat rate throughout the year, rather than paying allowances and penalties as they are incurred.
Many enterprise agreements contain provision for annualised salaries, providing a variety of methods and arrangements. Such arrangements will depend on the nature of the industry and occupations, the patterns of hours and earnings and the requirements of workers.
The advantages of annualised salaries are:
• access to a regular and stable income;
• workers taking sick or annual leave do not drop down to their base rate exclusive of penalty rates and allowances, but continue to receive payment based on the all-up flat rate;
• provided work is completed, workers can receive a higher rate (including average overtime earnings) without having to work the hours.
Certain safeguards need to be built into a system of annualised salaries.
• There should be an introductory period over which the impact on take-home pay is monitored to ensure workers are not losing out;
• The allocation of hours and rosters should be fair and equitable so that some workers don't end up working extra hours for no increase in pay. For this reason, annualised salaries are most likely to suit workplaces where workers generally work the same amount of overtime and where the benefits of overtime and allowances are equitable;
• Workers should be involved in periodically reviewing annualised salary arrangements.
Employer On-Costs - Payroll Tax/Workers Compensation
Calculations for payroll tax and workers' compensation are based on the size of an employer's payroll. A payroll tax based on a number of employees only increases the incentive to keep employee numbers down (but hours up). A payroll tax based on hours may have a different effect depending on the distribution of hours. A mechanism could be built in to base the tax on hours not employment, or provide tax relief for employers who reduce unpaid overtime. An appropriate formula could be worked out but a major difficulty would be compliance.
48/52 Scheme
Under this scheme the employee is paid for 48 weeks averaged over the whole year. This allows them to 'purchase' an additional four weeks annual leave to a total of eight weeks annual leave taken per year. This is done particularly in white-collar occupations (see CPSU Case Study). It works well with school holidays.
Reduced Standard Hours Per Week
Attempts have been made in European union countries to reduce for example, the standard working week. President Mitterand reduced the standard working week in France from 40 to 35 hours without any impact of France's unemployment. Belgium, Germany and Holland also attempted shorter hours initiatives. In Holland's case it was accompanied by wage cuts. In the case of German manufacturing industry there was scope in a highly skilled industry with a mainly full-time work force with high productivity levels for shorter hours. I.G. Metall maintains that in manufacturing the reduced hours initiative did have an impact on job creation and retention. However, this is industry-specific and may not be appropriate elsewhere. Nor has Germany managed to reduce its unemployment rate (which is currently 11.2%).
Maximum Hours - Overtime Cap
Overtime restrictions have occurred in Germany but have been closely policed by unions and employers at the workplace level. The parties also ensured that the education and training system provided sufficient skilled labour to reduce the industry's reliance on overtime. Given the evidence on workers' reliance on overtime for income security (see Table 9 and 10 in Section 1) this option is less attractive. Furthermore there is no guarantee that the overtime cap will bring an increase in employment.
Maximum hours initiatives have been attempted in Europe and closer to home in Malaysia. The European Union directive on Working Time restrains weekly hours (including overtime) to 48 hours on an average over four months. Malaysia has set its weekly maximum at 48 hours without any negative effects on its robust economic growth. The effectiveness of maximum hours depends on compliance and the basis of the wages/hours trade-off.
Increased Leave - Paid and Unpaid
There are a number of forms of increased leave that could be available. Denmark has used career breaks where employees take a year's break from work and provide a job for an unemployed person. Long term employed people are given preference for places created by career breaks. The WA Department of Education has a career break scheme whereby teachers work for four years and take the fifth year off as leave (they receive 80% salary per year averaged over 5 years). The Department employs a replacement teacher for the year off (see AEU Case Study). The sabbatical may be self-funded (eg AEU) or state-funded (Danish example).
Schemes such as the career break scheme are more concerned with quality of life issues than employment generation. Furthermore, the Danish example showed problems of labour-supply shortages in certain industries due to the popularity and generosity of the scheme.
Early or Phased-In Retirement
In response to the collapse of the older labour market (particularly older males) strategies need to focus on early or phased in retirement. In Scandinavian countries a partial-pension scheme has been introduced that allows older workers to remain in part-time employment whilst drawing a partial pension. This has improved the health of many older workers, reduced costs related to termination and disability payments, and retained the skills and experiences provided by older workers within the enterprise and the workforce generally. A similar scheme could also apply to older workers made redundant - allowing them to undertake part-time work for a transitional period. The evidence in Europe showed voluntary early retirement packages to be popular.
These schemes could have an impact on improving the quality of life and health of older workers. They could also reduce the unemployment of older workers but it is not clear that they will create jobs for other age groups, nor impact on the overall unemployment rate.
However, they have proved popular with older workers - especially those whose alternative job opportunities would be limited.
Job Sharing
Job sharing can be an attractive option for certain workers in certain industries. For example, there is evidence that job sharing is popular for working women with young children. However, those who regard job sharing as a solution to unemployment would be disappointed by the empirical evidence on the subject. ACIRRT (1996) has noted that the employment effects of work sharing initiatives have been modest ".....usually generating or maintaining jobs for fewer than 0.5% of the labour force."
[ACIRRT, 1996, p.1]
Job sharing is an attractive option for some, but overall not a major solution to unemployment. If there are no appropriate macroeconomic policies in place, and if business is not investing and creating jobs, job sharing and other working time initiatives will be ineffective.
Other Measures
Other innovative approaches could be formulated by workplace delegates based on workplace knowledge and experience. Approaches should be built around strategies for job security and a pay structure that provides for income security and career progression.
CONCLUSION
Working Time is the key issue facing the union movement. Unions must focus on working time issues when forming claims for their members based on income and job security.
This paper provides evidence on:
• the decline of the 'standard working week' and the diversity of working time arrangements in the workforce in the 1990s;
• the growth of part-time and casual work;
• the growth of excessive, unpaid hours;
• the growth of precarious employment in Australia relative to other industrialised countries;
• the pattern of hours arrangements in awards and EBAs compared to actual working time outcomes in the workplace (and their effects).
The paper then proposes several strategies based on efforts to share work and working hours.
These strategies reform working time arrangements in order to:
• improve workers' trade-offs between work and family responsibilities;
• improve the quality of working life by reducing the probability of health and safety risks due to overwork and stress;
• protect those workers in precarious employment;
• ensure that work and leisure is voluntary and negotiated, not unilaterally imposed by employers;
• ensure that workers who rely on paid overtime and penalty rates are not disadvantaged.
These objectives are important in any policy package to improve the distribution of working time, the distribution of income, and restore high levels of employment. However, it must be emphasised that appropriate economic and industry policies are the main instruments needed to promote employment. Working time initiatives will not work in the absence of a growing economy and a willingness by employers to invest and create jobs. There must be economic growth and continued investment for working time measures to work.
This paper provides evidence, a discussion on the issues and possible strategies. It is up to the union movement to collectively determine an appropriate package on working time to improve income and job security for Australian workers.
References:
For tables and statistics used please email ACTU Library (ACTU Research Officer)
ABS Various Publications
ACIRRT (1996) "Reforming Working Time" Alternative to Unemployment, Casualisation and Excessive Hours", Report for the Brotherhood of St Lawrence. Brotherhood of St Lawrence, Fitzroy, Victoria.
ACIRRT, ADAM Reports (various).
ACTU (1990) "Guidelines and Negotiating Exhibit on Part-Time, Casual Work and Job- sharing", ACTU, Melbourne.
ACTU (1995) "Casual Employment and Industrial Regulation: What Should Unions Do?", ACTU, Melbourne.
Campbell I. (1996a) "The End of Standard Working Time? Working Time Arrangements and Trade Unionisation in a Time of Transition". NKCIR, Working Paper No. 39, Monash University.
Campbell I. (1996b) "Casual Employment, Labour Regulation and Australian Trade unions". Journal of Industrial Relations, Vol 38, No. 4., December.
Charlesworth S. (1996) "Stretching Flexibility: Enterprise Bargaining, Women Workers and Changes to Working Hours", HREOC, Sydney.
DEET (1991) Australia's Workforce in the Year 2001, AGPS, Canberra.
DEET (1995) Australia's Workforce 2005: Jobs in the Future, AGPS, Canberra.
DIR (1995) "Enterprise Bargaining in Australia".
Heiler K (1996) "Is Enterprise Bargaining Good for your Health?", ACIRRT Monograph
No.14, Sydney.
ILO (1995) "Working Time Around the World", ILO conditions of Work Digest, Vol 14., ILO Geneva.
McMullan B (1996) "A Fair Distribution of Work is an Equity Issue of the 21st Century". Speech to John Curtin Memorial Breakfast, Perth, 24 November, 1996.
OECD (1994) The OECD Jobs Study, OECD, Paris.
OECD (1996) Employment Outlook, July 1996, OECD Paris.
Probert B (1995) "Part-Time Work and Managerial Strategy" 'Flexibility' in the New Industrial Relations Framework", DEET, AGPS, Canberra.
Roche W., Fynes B. and Morrissey (1996) "Working Time and Employment: A Review of International Evidence", International Labour Review, Vol. 135, No. 2, ILO Geneva.
Romeyn J. (1992) "Flexible Working Time: Part-Time and Casual Employment", Industrial Relations Research, Monograph No. 1, DIR, Canberra.
Simpson M. (1994) "An Analysis of the Characteristics and Growth of Casual Employment in Australia", WALMR, Curtin University of Technology, Perth, WA.
ATTACHMENT
CASE STUDIES
AEU
WA Department of Education - Career Break Scheme
Teachers work for four years and take the fifth year as leave, pursuing study or other activities. Their salary is averaged over five years, which means they receive 80% of their pay every year; and the department is able to employ a new teacher as a replacement for the fifth year at no addition cost.
CPSU
48/52 Schemes - Various State Government Departments
Employee is paid for 48 weeks averaged over the whole year. This allows them to 'purchase' and an additional four weeks annual leave so a total of eight weeks annual leave is taken per year.
AMWU
Four Day Weekend
Vehicle workshop in S.A. provides a four day weekend every four months with 20% of the workforce off on any one work day. Each day has been extended from 7.6 hours to 9.5 hours. A day off is rotated each week such that each employee receives a four day weekend every month. The scheme has provided additional employment.
ASU (CLERICAL)
'Time-Off' Credits
Clerical workers retain standard working time arrangements in awards - with full-time work organised around a 38 hour week, and paid overtime outside ordinary hours. If paid, overtime and penalty rates are at time and one-half for the first two hours (or until mid-day Saturday) and double time thereafter and for all work on Sundays.
Both the main awards and agreements in the public and private sector provide time-in-lieu of paid overtime. Flexibility is provided in the form of make-up time provisions for ordinary time taken, under award carers' leave provisions.
The Victorian Award provides an averaging system for payment of wages at a 38 hour week, with credits towards time-off.
LHMU (HOSPITALITY)
Flexible Working Hours - Part-Time Workers
Under the Crown Casino Enterprise Agreement, ordinary hours for part-time employees may vary between a minimum of 16 hours and a maximum of 72 hours over a two week period, or a minimum of 32 hours and a maximum of 144 hours over 4 weeks.
The range of hours may be extended by agreement between the company and employee. Part-time and casual workers may be rostered for shifts of between 3-10 hours. By agreement, a 12 hour shift may be worked, with a limit of no more than 3 consecutive 12 hour shifts.
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