Unions NSW wants an end to forced unpaid overtime

June 18, 2024
Issue 
Retail and Fast Food Workers Union members protest Coles and Woolworths profiteering last November. Photo: Larissa Waters/Facebook

Australian聽workers do more聽overtime聽than almost any other Organisation for Economic Co-operation and Development聽nation, for Unions New South Wales has found.

It amounts to聽average of $21,500 in unpaid聽labour a year.

Some 86% of the 5000聽workers surveyed reported doing聽unpaid聽overtime聽every week.

They worked nine聽hours聽of extra work each week, on average, equating to more than 11锘 weeks of聽unpaid聽labour a year.

The聽survey found that workers performed an average 1.5 hours of聽unpaid聽overtime聽every day: 77% noted that the unpaid overtime was having a negative impact on their lives.

For those on an average yearly income of $96,660, the financial value of the聽unpaid聽work is $21,563.

The report found that聽this practice is not confined to those on high incomes.

Workers earning less than $70,000 a year undertake 7.3聽hours聽of unpaid work a week.

Those earning $110,000-$130,000 a year perform more overtime: 12聽hours聽a week.

while part-time and casual workers perform less聽overtime聽than full-time staff, they still undertake around 6.5聽hours聽a week.

The Fair Work Act allows for workers to work more than 38聽hours聽a week for no extra pay if the 鈥渁dditional聽hours聽are reasonable鈥.

Unions NSW wants this changed to make bosses pay for聽overtime聽worked for workers earning less than the high income threshold 鈥 currently $162,000 a year.

Unions NSW Secretary Mark Morey said on June 13 the cost-of-living crisis means the changes are urgent.

He said the huge extent of聽unpaid聽overtime聽鈥渞eveals how employers have become accustomed to expect it鈥.

鈥淢ore often than not, workers are required to work through lunch breaks, turn up early and finish late, and put in extra聽hours聽on the weekend.鈥

He said this is affecting workers physical and mental well-being and prevents them spending time with their families and contributing to their communities.

鈥淔ears of reprisal, missing out on promotion and threats from employers to give staff a worse roster all prevent workers from leaving on time.鈥

He said the Fair Work Act鈥檚 鈥渟upposed limitation on聽overtime聽is completely failing鈥.

The study is the first large scale survey into the quantum and impact of unpaid overtime. The report said unpaid聽overtime聽has been justified as 鈥渁 trade-off for higher salaried wages, or a necessity for junior employees in professional occupations with potential for high bonus or promotion opportunities鈥.

However, the findings challenge this justification.

The report makes five recommendations:

鈥 Re-introduce the 38-hour week and a legal protection for employees to refuse to perform unpaid overtime.

鈥 Improve employer-record keeping obligations.

The Fair Work Act requires employers to record the amount of paid overtime to their workers which should extend to require employers record the amount of unpaid overtime their employees perform.

鈥 Introduce transparent employer reporting requirements.

Employers should be required to report annually on the amount of overtime, paid and unpaid, staff have performed.

鈥 Mandatory paid volunteer/social support leave.

All employees have 100 hours paid leave a year for volunteering at a not-for-profit, community or social justice organisation.

鈥 Increase the mandated four to five weeks annual leave for all workers.

A standardised week of additional leave would also start to redress the work-life imbalance experienced by the majority of workers.

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