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Launceston council set to scrap four-day week proposal after business backlash

The contentious proposal for a four-day working week from Launceston council has collapsed with a more refined plan now on the table. Why nobody is happy with how it’s panned out. Nick Clark 2 min read

IMAGE: Launceston council's chief executive officer Sam Johnson was a key backer

of the shorter working week. Picture: Supplied/City of Launceston Council Launceston

The City of Launceston council proposal for a four day working week has been sabotaged by business groups, sources close to the negotiations say.

The Mercury understands that a meeting between the City of Launceston and the Australian Services Union on Tuesday heard that the council was proposing an alternative arrangement and would not go ahead with the four day working week.

This comes after the Tasmanian Chamber of Commerce and Industry slammed the proposal, saying cutting working hours for the same pay was a slap in the face for ratepayers and local business.

Launceston CEO Sam Johnson had previously defended the move as a response to wage pressures and staff retention issues.

IMAGE: CEO of the City of Launceston, Sam Johnson (left), with a

council worker. (Source: Facebook/City of Launceston Official)

However, on Wednesday he said the City of Launceston had refined its proposed enterprise agreement following extensive feedback from ratepayers, stakeholders and the broader community.

Mr Johnson said the decision to step back from the previously proposed 30.4-hour 100-80100 model prioritised community trust and the protection of the Council’s 600-strong workforce.

“We have listened to our ratepayers and stakeholders,” Mr Johnson said.

Mr Johnson said the public debate surrounding the original proposal had become increasingly polarised and directed unacceptable hostility towards staff.

“Employment conditions should be determined through proper industrial processes – not through social media commentary before staff have had the opportunity to vote,” he said.

The Council will now proceed with a revised enterprise agreement that includes: flexible 38-hour arrangements, including compressed four-day weeks and nine-day fortnights, a 5 per cent wage increase in 2026, and a 4 per cent increase or CPI (whichever is higher) in 2027.

The revised agreement will be put to impacted staff for a formal vote in the coming weeks. Mr Johnson said the council remained committed to modern workforce reform.

“Let me be absolutely clear – we believe in this model,” he said.

“But reform of this scale must be introduced in a way that endures. It must be supported and understood by the community we serve.

Meanwhile the Australian Services Union (ASU) condemned the interference of external business groups after the City of Launceston was pressured into walking away from the landmark four-day work week agreement.

ASU Victorian and Tasmanian branch secretary Tash Wark said the original “100-80-100” model was a locally grown solution designed to fix a recruitment crisis without hitting ratepayers with massive rate hikes.

“It is beyond disappointing that outside groups with no skin in the game have worked to squash a deal negotiated in good faith by the people actually doing the work,” she said.

TCCI claimed victory over the 30.4-hour week backdown.

CEO Michael Bailey said the result was a clear win for common sense, services and ratepayers.