The announcement that Australian software giant Atlassian will lay off 10% of its staff has brought the debate over artificial intelligence and employment into sharp focus. While questions about AI's overall utility persist, its transformative impact on sectors like software development is undeniable, with tools like Claude reportedly boosting productivity dramatically.
The Historical Context of Work Hours
Concerns about technology displacing jobs trace back to the Industrial Revolution and the Luddite riots. Initially, the factory system not only destroyed cottage industries but also increased work hours and intensity, with some British workers toiling up to 70 hours weekly in the early 19th century.
However, from the mid-19th to late 20th centuries, technological progress led to steady reductions in working hours. Australia and New Zealand pioneered the eight-hour day in the 1850s, gradually cutting standard weekly hours from 48 to 40 and establishing the weekend by 1948, driven largely by union and government efforts against employer resistance.
The Stalled Progress
By 1980, the Australian Council of Trade Unions pushed for a 35-hour week, but weakened unions and pro-employer governments limited reductions to 38 hours, where they remain today. Annual leave has also stagnated at four weeks since the Whitlam era, making these conditions seem immutable.
Professor John Quiggin notes that discussions on AI often assume any drop in total hours worked equates directly to job losses, overlooking the potential for shared benefits through shorter workweeks.
Remote Work and Changing Norms
The pandemic-induced shift to remote work demonstrated that radical changes in work patterns are possible, with minimal disruption as millions adapted overnight. Despite employer attempts to revert to pre-pandemic norms, remote work has persisted, and new legal rights like the right to disconnect have helped curb work intensification, with some office workers quietly reducing Friday hours.
Yet, these gains are uneven, largely benefiting knowledge workers while jobs in retail and transport see little change. Political responses have varied, with figures like Jane Hume opposing remote work for equity reasons, and the Albanese government rejecting a four-day week, leaving only the Greens supporting union-led shorter hours campaigns.
The Urgent Need for Action
There is little doubt that AI will drive significant productivity improvements. However, without proactive measures, these benefits may disproportionately favor corporate profits over workers. A revival of the stalled movement for gradual work hour reductions is crucial to ensure equitable distribution of AI's gains, echoing historical labor struggles for fairer working conditions.
