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Autumn 2003

Extended Working Hours in Australia: Counting the Costs

For many Australian workers, their families and communities, extended working hours have lead to increased levels of fatigue and decreasing levels of social support.

This in turn has the potential to compromise safety and the long-term health and wellbeing of workers and the organisations that employ them according to a recent report from Dr Drew Dawson.

An increasing body of evidence looking at hours of work indicates that we are fast approaching, or may have already passed, the point of diminishing returns in many industries.

This is particularly relevant for those working significantly more than 50 hours per week.

Drew Dawson argues that the extension of working hours, particularly for shift workers, has significantly reduced the time available for sleep and social activities.

For many Australian workers, their families and communities, extended working hours have led to increased levels of fatigue and decreasing levels of social support.

This in turn has the potential to compromise safety and the long-term health and well being of workers and the organisations that employ them.

A significant body of research has now demonstrated declining workplace performance has been associated with extended hours.

In addition, extended hours of work have also been associated with reduced employee well being, reduced organizational commitment and poor health outcomes.

These factors have, in turn, been linked to declining levels of productivity and workplace safety.

Drew Dawson believes many organisations have directly benefited from the productivity gains associated with extended hours of work, while passing the direct costs on to the community and taxpayer.

In order to determine whether extended hours of work advantages Australia as a whole, or constitutes an indirect subsidy to industry, it is essential to recognise a broader conception of costs in our overall evaluation of working hours policy.

Indeed, where extended hours of work result in a net transfer of costs to the community and taxpayer, it can be argued that such practices constitute anti-competitive behaviour.

Given the diversity of Australian workplaces and the people within them, it is our belief that hours of work can be managed most appropriately at the enterprise or industry level.

This has been a particular aim of the recent ACTU position on reasonable hours, which introduces a general standard of fairness with respect to the requirement to work extended hours.

As such, the recommendations of the clause are appropriately aimed at industry as a whole.

The whole report - Extended working Hours In Australia: Counting The Costs - can be downloaded from the Queensland Department of Industrial Relations website.
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