For many Australians, a summer holiday never feels long enough. Increasingly, many are questioning whether it is.
The union movement is increasingly pushing for five weeks of annual leave for Australian workers. They argue annual leave in Australia hasn’t increased since 1974, when it was increased to four weeks for most workers. This is despite the fact productivity has risen in recent decades and technology has increased demands on many workers and encroached into their personal time.
Major companies such as IKEA and Bunnings have already agreed to this proposal, and many other companies are expected to follow suit. While the focus is currently on the retail and hospitality industries, many believe workers in other sectors should also be given five weeks’ leave.
Australia falls behind Austria, Denmark, Finland, Luxembourg, Denmark, and Sweden, which provide employees with at least 24 weeks of paid leave a year. Some countries offer long-serving workers six weeks’ leave a year.
However, many countries are less generous with their leave entitlements. For example, in Japan, workers are offered 10 or 20 days of leave depending on their length of service, and in the US, workers have no leave entitlements. Korea and Canada also have fewer entitlements than us.
So, do the current arrangements strike the right balance, or do hard-working Australians deserve more time off?
Thanks to the Sydney Morning Herald, News.com.au, and SBS, we explore the benefits and drawbacks of increasing workers’ leave entitlements.
For many, the prospect of increased leave entitlements is seen as a win-win for employers, employees and the economy. It’s a step towards a healthier work-life balance and a more productive workforce.
Proponents argue that this change is long overdue, with people working longer hours than ever before.
It is argued that employees who are less stressed will be more productive, which will benefit employers. In an interview with SBS, John Quiggin, an economics professor at the University Of Queensland, said the change made economic sense.
“It’s equivalent to about a 2 per cent increase in wages, one extra week off in 50. So it’s quite a modest change, but I think it’s one that’s long overdue,” he said.
“We’re seeing a push to resume the trend towards more leave, better balance, which makes sense in terms of huge improvements in productivity.”
However, he argues the focus should be on benefits to the employee, not the employer.
Many believe that giving workers more leave would help boost the economy. This is especially the case for leisure-based sectors. For example, people would have more time to go on holidays and dine out.
It would also relieve pressure on those with caring responsibilities, which is disproportionately women. Currently, many workers with school-aged children find it difficult to juggle their leave entitlements with extensive school holidays.
However, many warn that increasing leave entitlements could also have negative consequences for the workforce and economy.
Providing an extra week of leave would significantly increase costs for many employers. It is estimated that many employers would face increased costs of 4.5 per cent. As a result, there are fears it could lead to job losses.
While we all want more holidays, any push to increase leave should take into account the various factors at play.
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