Australia Debates Three-Day Workweek as AI Reshapes Employment Future

Australia is witnessing a growing debate over the future of work as labor leaders push for a three-day workweek, arguing that the productivity gains generated by artificial intelligence should be shared more broadly with employees rather than flowing primarily to corporations.

The proposal comes as businesses accelerate investments in AI technologies, prompting concerns over job security, workplace restructuring, and the distribution of economic benefits from automation.

Speaking on the issue, Sally McManus, Secretary of the Australian Council of Trade Unions, said technological advances should improve the quality of work and provide employees with more time rather than simply boosting corporate profits.

“The union movement is not saying artificial intelligence is bad,” McManus said. “It has the potential to be something incredibly positive.”

She argued that Australia should pursue a future in which technological progress creates more engaging jobs, supports fair taxation of large technology companies, and allows workers to benefit through significantly shorter working weeks.

“We would like to see a time when jobs become more interesting, when the benefits are shared, and when society can move toward a three-day working week,” she said.

Beyond working-hour reforms, labor representatives are urging companies to involve employees before introducing AI systems that could alter job roles, skill requirements, or career pathways.

McManus emphasized that Australian workplace regulations require employers to consult workers when implementing changes that could affect their employment conditions or future professional development.

According to union leaders, meaningful consultation is becoming increasingly important as AI tools move from experimental technologies to core business functions across multiple industries.

The debate has also reached policymakers in Canberra.

Andrew Charlton, Assistant Minister for Technology in the government of Anthony Albanese, said Australians are uncomfortable when technology appears to be imposed upon them rather than designed to improve their lives.

Charlton warned that while the economic benefits of AI can be substantial, they often accrue disproportionately to a small number of global technology companies, while local communities bear many of the associated costs.

Those costs, he noted, can include job losses, privacy concerns, rising energy consumption, and broader social impacts linked to large-scale technological change.

Public attitudes toward artificial intelligence remain cautious.

A study conducted by University of Melbourne and KPMG involving more than 48,000 respondents across 47 countries found that only 30% of Australians believe the benefits of AI outweigh its risks.

The findings reflect growing concerns that businesses may increasingly use AI to replace workers and reduce labor costs rather than enhance productivity alongside existing workforces.

The concerns are emerging against the backdrop of rapid technological change.

Major corporations worldwide are investing billions of dollars in artificial intelligence and automation while restructuring their workforces to adapt to new operating models.

In the United States, analysts at Goldman Sachs have projected that as much as 50% of current jobs could be fully automated by 2045, potentially affecting hundreds of millions of positions globally.

While estimates vary widely, the broader trend points toward significant changes in how work is organized, managed, and performed.

The impact is already becoming visible in Australia’s corporate sector.

Earlier this year, billionaire entrepreneur Mike Cannon-Brookes, co-founder of Atlassian, drew attention after the company eliminated more than 1,600 positions as part of a broader restructuring effort in which artificial intelligence was cited as a key factor.

Cannon-Brookes said AI had changed both the skills the company requires and the number of employees needed in certain areas of the business.

Meanwhile, Australian software company WiseTech Global announced an AI-driven restructuring plan that could result in the reduction of approximately 2,000 jobs, roughly one-third of its workforce, over a two-year period.