28 April 2024
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Will Albo enshrine working from home into law?

Peter Switzer
23 February 2024

Prime Minister Albanese wants proof that working from home can deliver a positive productivity dividend that could deliver his government four payoffs. And not all of them are economic gifts.

First, he could have arguments to justify not getting public servants offside by asking them to come back to work. This comes as many non-government workers were surprised to learn that the AFR revealed that “the number of federal public servants working from home – including Reserve Bank, Treasury and other key department staff – has more than doubled since before the pandemic.” So that means 40% of these 180,000 public servants now work from home two or three days a week.

Second, the PM and his team will have another policy that might annoy the business sector that employs workers, but Labor will have a new policy that will more than likely please employees, who also can be considered voters!

Third, he actually might get some academic/survey data that says working from home actually is a plus for the economy and fourth he wins the next election.

The Albanese Government is trawling for all policies that non-business owning employees might either like or might feel aren’t threatening to them. In the future, this could be a plus to them if their circumstances change. It’s clever politics but potentially could be ruinous for some businesses, damaging to the economy and may result in higher unemployment. However, these negative effects could years after the possible law changes that mandate a worker’s right to work from home.

This kind of policy works when unemployment is low, as it is now at 4.1%. However, when it starts to rise significantly, then some of these worker-friendly/anti-business policies could come back to bite Labor, though that would more likely happen after the next election.

So, as The Brisbane Times says, the PM “…has backed an examination of the productivity benefits of working from home following revelations the government is looking into the obstacles preventing workplaces from tapping into the phenomenon.”

And he is backed by Productivity Commission chair Danielle Wood, who argues that “remote work was not a drag on productivity and, if managed well, could benefit the economy.”

Albanese is also planting a message in the public domain saying he likes not only the potential productivity but also the “flexibility” it offers workers and families. Clearly, this isn’t a hard thing to sell to potential employee voters.

Right now, “…the Fair Work Commission is investigating if working-from-home rights should be incorporated into industrial awards that cover millions of Australians,” Angus Thompson and Rachel Clun

from The Brisbane Times report. “Speaking at a press conference in Sydney, Albanese said while the appropriateness of working from home depended on the job, for many people it provided flexibility as well as improvements in productivity, which the government is determined to boost.”

And what employee would argue with this comment from the PM? “Rather than spending up to three hours – many people travel an hour and a half each way to and from work – that activity can be done more productively.”

He then linked his initiative to his belief that working from home has been “positive for working parents”.

Albo wants to find that working from home is a win-win but how can it be so clearcut for all businesses that it becomes a mandated right of workers? And even if they isolate this to specific industries, how can you assume all businesses do business exactly the same way?

Only a politician who has never run a business would think that this should be a right of a worker. It should be a practice that should be encouraged, especially if objective analysis says it works as a plus for employers and employees, but to make it a legal right looks more like a great idea politically but not necessarily economically.

Employers worry that too much working from home undermines workplace culture and the learning process for employees from being in the company of other workers. And Opposition Leader Peter Dutton accused the government of presiding over a union wish list. “Flexibility is fine for workers, and we encourage that. But, in the end, we have to be careful that the Albanese government just doesn’t side with the union on every occasion,” Dutton said at a press conference in Sydney.

As we eventually slide into pre-election mode, this could easily become a political ‘hot potato’ for Peter Dutton but a nice bag of chips for Albo.

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