Proposed Enterprise Agreement

The City of Launceston has reached an in-principle Enterprise Agreement with the Australian Services Union (ASU), which will be put to eligible employees for a formal vote.

If endorsed by employees, the agreement would introduce a four-day working week on full pay for most City of Launceston staff, alongside a range of workforce and wellbeing reforms.

This page explains why the proposal has been developed, what it means for service delivery, and how Council will ensure the community continues to receive reliable services.

 

Why is Council proposing a new Enterprise Agreement?

Local government across Australia is experiencing increasing workforce pressures, including:

  • Difficulty attracting skilled staff
  • Higher turnover and vacancy rates
  • Greater reliance on contractors and agency staff
  • Rising costs that ultimately fall on ratepayers

Simply increasing wages is not a sustainable solution for councils, as it places long-term pressure on rates without addressing burnout, retention or service continuity.

The proposed Enterprise Agreement is designed to protect service delivery by improving workforce stability, reducing churn and ensuring the City of Launceston remains a viable and competitive employer.

Doing nothing is not a neutral option — it carries real risks to capability, continuity and cost.

What is the proposed four-day week?

Under the proposal:

  • Full-time employees would work 30.4 ordinary hours over four days
  • Employees would continue to receive 100 per cent of their current pay
  • The model replaces the existing RDO system
  • The change would commence from July 2026, if approved

This does not mean a reduction in Council services or operating days.

A four-day week does not mean a four-day council.

Will Council services be reduced?

No.

Maintaining service delivery is a non-negotiable requirement of the proposal.

The four-day week is being developed alongside detailed operational planning to ensure:

  • Five-day (and where required, seven-day) service availability continues
  • Rosters and work patterns are staggered
  • Coverage is maintained in service-critical teams
  • Community access points remain open and reliable
  • Performance and productivity metrics are embedded into implementation

The focus is on redesigning how work is done, not reducing what is delivered.

Why a four-day week?

The four-day week is one of the most rigorously tested workforce reforms globally, including in public-sector organisations similar to local government.

International experience shows councils that have adopted shorter working weeks have achieved:

  • Lower staff turnover and vacancy rates
  • Strong increases in job applications
  • Reduced absenteeism and burnout
  • Improved workforce engagement
  • Stable or improved service performance
  • Reduced reliance on contractors 

These outcomes matter because workforce stability is the single biggest driver of consistent service delivery.

What about productivity?

Global evidence shows that when work is redesigned properly, productivity can be maintained or improved, even with fewer working hours.

Australia has faced similar debates before.

Every major reform to working life - including annual leave, the eight-hour day and the 38-hour week - was initially met with predictions of falling productivity and failing services. Each time, those fears proved unfounded.

Who does the proposed Enterprise Agreement apply to?

The proposed agreement would cover employees within the Enterprise Agreement classification structure, excluding:

  • Senior and Executive Leaders
  • The Chief Executive Officer
  • Employees at the Launceston Leisure and Aquatic Centre and other pools
  • Some casual employees, depending on eligibility under the Fair Work Act

Only eligible employees may vote on the agreement, as required by legislation.

Will this cost ratepayers more?

The proposal is not about increasing overall employment costs.

As part of the 4 Day Week model, the Council is proposing to adjust the employer superannuation contribution for most employees from 15.25 per cent to 12 per cent, which aligns with the standard contribution made by many organisations. The funds released from this adjustment would be reinvested directly back into the organisation to support the systems, processes, and resources needed to implement the 4 Day Week. This approach ensures that the immediate costs of implementation are absorbed internally, with no additional cost to ratepayers.

Broadly, the proposal is also intended to:

• Reduce turnover and recruitment costs
• Lower reliance on agency staff
• Retain experienced employees
• Improve long-term workforce sustainability

These outcomes help manage costs over time while maintaining service standards.

What is the potential cost to ratepayers if we do not explore these options?

Doing nothing is not a neutral or risk-free path. Local government is facing an increasing pressure in attracting and retaining employees across many fields. As vacancies remain unfilled for longer, the Council would face higher recruitment costs, increased reliance on agency staff and greater instability across key services. These pressures ultimately flow through to ratepayers.

If we do not look at more flexible and appealing ways of working, our ability to attract and retain skilled employees in an increasingly competitive market will continue to decline. This will directly affect our ability to grow and evolve as an Organisation. Competing with both the private sector and mainland local government organisations in areas such as IT, finance, law and engineering (to name a few) would require significant increases in pay to match market rates. This approach is not sustainable for the organisation or for our ratepayers, and it risks creating the very cost pressures we are trying to avoid.

The natural beauty of Launceston and the ease in which the public can access amenities creates an incredible advantage as a city that supports work and life balance. We need to be able to lean into our natural strengths.

Exploring options such as the 4 Day Week allows us to draw on that strength and offer something that is not widely available in the sector. Without these types of initiatives, the cost to maintain services would rise over time, placing further pressure on rates and reducing the City’s ability to grow and evolve as a modern organisation.

Doing nothing carries real risks to capability, continuity and long-term cost.

How will Council monitor the impact?

If endorsed, the Enterprise Agreement would be implemented in a phased and disciplined way, with:

  • Ongoing service and performance monitoring
  • Clear productivity and service metrics
  • Adjustments where required to protect service delivery
  • Continued transparency with staff, councillors and the community
 
What happens next?

Eligible employees will vote on the proposed Enterprise Agreement in the coming period.

Council will continue to provide clear and accurate information to the community as the process progresses.

In summary

This proposal is not about novelty or ideology.

It is about:

  • Responding responsibly to evidence
  • Protecting service delivery in the long term
  • Supporting a healthier, more sustainable workforce
  • Ensuring local government remains capable, reliable and affordable for the community it serves

 

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