The Tasmanian Chamber of Commerce and Industry (TCCI) has expressed serious concern at the City of Launceston’s proposed move to a four-day working week on full pay, warning it risks higher costs, lower service levels and unfair pressure on local employers.


TCCI Chief Executive Officer Michael Bailey OAM said the proposal amounts to a 20 per cent cut in hours worked, with no guarantee of improved productivity or service.

“Let’s be clear - this is effectively a 20 per cent reduction in hours for the same pay,” Mr Bailey said.

“At a time when rates are already rising above CPI, most ratepayers and small businesses will see this as a 20 per cent pay rise for council staff with no clear return for the community.”

20% less time, same pay – who pays the difference?

Under the proposal, full-time staff would work four shorter days instead of five, with no reduction in salary.

TCCI is concerned that:
  • Fewer hours worked will mean less capacity to process planning applications, permits and approvals, unless more staff are hired.
  • Any reduction in output will ultimately be paid for by ratepayers through higher rates, fees or charges.
  • Council has not yet demonstrated how it will maintain -let alone improve - turnaround times and service standards that businesses rely on.
“Council is a monopoly provider of essential regulatory services - businesses can’t ‘shop around’ for a faster planning department,” Mr Bailey said.

“If service slows down, projects are delayed, costs blow out and investment is put at risk. That is the opposite of what Launceston needs right now.”
 
Wedging local businesses into an unsustainable model

TCCI is also worried about the signal this decision sends to the private sector.

“This move wedges local businesses,” Mr Bailey said.

“Council is effectively saying a 20 per cent reduction in working hours on full pay is the new benchmark - but most small and medium businesses simply cannot afford that without lifting prices or cutting jobs.”

Many employers are already grappling with:
  • Rising wages and on-costs;
  • Higher interest rates and input costs; and
  • Difficulty finding and retaining staff.
“In that environment, asking local businesses to match a publicly funded four-day week is unrealistic and unsustainable,” Mr Bailey said.

“This is a decision by a body elected to represent the community that is simply a 20 per cent pay rise for itself, at a time when households and businesses are being asked to do more with less,” Mr Bailey said.



Media Contact:
Michael Bailey OAM – Chief Executive Officer, TCCI