The usual line taken by government Ministers is that they do not get involved in operational matters. But the latest meddling in operational issues is playing out around the pros and cons of working from home. Public Service Minister Nicola Willis has directed the public service to tighten up on working-from-home arrangements.
The directive does not appear to be evidence based and seems more motivated towards assisting small hospitality and retail businesses in Wellington’s CBD. Understandably, the move has been welcomed by some Wellington businesses, who have complained that the work-from-home culture has made it difficult for businesses in the city.
However, the opportunity to work from home has become more of a necessity for workers in Wellington and other larger centres with many workers struggling to make ends meet. High inflation has significantly pushed up the cost of servicing mortgages or paying rent. The cost of living crisis has significantly pushed up everyday costs such as food and petrol. The government has removed half price fares on public transport, the cost of parking is exorbitant, road user charges have been introduced for electric vehicles and there is even serious discussion about introducing congestion charges in the larger centres. Even a day or two working from home can make a difference to a family’s finances.
Not only are many workers struggling, there appears to be little confidence in the job market. The latest Westpac-McDermott Miller Employment Confidence Index fell by 2.2 points from 91.4 to 89.2 in the September quarter. That is the lowest reading since New Zealand emerged from the first Covid-19 lockdown in 2020. Pessimism is even lower in Wellington where the impact of government directed job cuts in the public service continues to take its toll.
In support of the Public Services directive the Prime Minister said he wanted a “highly productive and collaborative” public service. “I do not want to see working from home, undermining that ambition that we have” he said, adding he was worried young graduates did not have the opportunity to learn from senior public servants because they were working from home. In reality, those young graduates that have survived the job cuts are probably more worried about retaining their jobs than concentrating on their career development in a public service where public service is not valued and they are witnessing careers being cut short by government directive.
By way of contrast, the new UK government is pushing back against their previous government’s attempts to get workers back in the office, having directed officials to spend at least 60 per cent of their time, or three days in a week, in the office. The new Business Secretary, Jonathan Reynolds, has backed remote working, saying it is good for the economy because people are more productive when they are 'happy at home'. Other Ministers such as the Transport Secretary Louise Haigh and Deputy Prime Minister Angela Rayner have told staff they support 'flexible working'. Their comments have been interpreted by civil servants as a 'relaxation' of the drive to force them back to the office.
Anecdotal research, particularly by recruitment firms, show that flexible working arrangements, including being able to work from home, are an important benefit for employees. Research earlier this year by Robert Walters showed that flexible working is a significant drawcard for employees. Forty percent of those surveyed would look for a new job if their employer made them return to the office five days a week, while a further 33 percent would if their work-from-home days were reduced.
For the significant number of businesses that have provided working from home opportunities since the Covid-19 lockdowns, the issue may not be easy to resolve. For many businesses the way work may be undertaken has changed, and employees have increased expectations around a work/life balance.
The starting point is that the ability to work from home is not usually a contractual right that can be enforced. Employment agreements are required to provide a location where the work will be performed, which will usually be the business premise. However, many businesses will have implemented working from home type policies. Even more businesses will have negotiated directly with employees regarding their working arrangements. Employees are likely to have been recruited on the basis of the promise of providing the opportunity to work from home.
Employees also have the right under the Employment Relations Act to request flexible working arrangements, and employers are required to deal with such requests in good faith. It makes it harder to refuse such a request in good faith if there is clear evidence that a working from home arrangement has worked well and there have been no concerns over the employee’s performance.
The government’s directive to significantly cut the public service has had a huge impact on the moral of public servants. The directive to work from the office will further deepen that impact and make the retention and recruitment of those valued staff that the Prime Minister wants to mentor the public services new recruits that much harder. Read more...