A meeting of Anthony Albanese and state and territory leaders on Monday could bring calls for people to work from home in order to save fuel as prices skyrocket because of the war in Iran.
Unions are already calling for higher fuel reimbursements for workers, while business groups say “we don’t want to go backwards” on working from home and the CBD business ecosystem needs to be protected.
Over the past week, the number of service stations around the country running dry continued to climb despite the government saying the amount of fuel in the country had not decreased.
Whether it’s people hoarding fuel, major sellers squeezing the independents, people panic buying or the global oil prices, Aussies are paying more at the bowser.
Swinburne University organisational psychology expert Timothy Bednall says Australia cannot afford to waste fuel on avoidable commuting.
“We’re in a slightly unusual situation at the moment, where the costs of commuting are largely borne by employees rather than employers,” he told NewsWire.
“From that perspective, there isn’t a strong direct financial incentive for employers to actively support remote work.”
The US and Israel began bombing Iran on February 28; Iran effectively closed the crucial Strait of Hormuz, freezing some 25 per cent of the world’s oil supply and 20 per cent of LNG.
“If the Iran conflict continues and fuel shortages intensify, I expect there will be increasing pressure on employers to enable remote work where it is a reasonable option,” Professor Bednall said.
“Whether this comes through social expectations or legislative change, my sense is that the burden of proof may begin to shift, with employers needing to demonstrate why in‑person attendance is genuinely necessary.”
Major unions across the country have begun pressuring governments to allow workers to stay at home and avoid spiking fuel costs.
Australian Services Union national secretary Emeline Gaske said people could not afford higher fuel costs.
“By removing the mandatory daily commute where it is possible to do so, we are helping workers take back their time and save money that would otherwise be swallowed by soaring fuel costs,” she told NewsWire.
“This is about empowering employees to survive a cost-of-living crisis that is being driven by out-of-control chief executive pay and corporate profits.
“We cannot let corporate greed continue to swallow the take-home pay of working families while the big end of town rakes in record bonuses.”
In South Australia, the Public Service Association general secretary Charlotte Watson says buses, trams and trains have been jam-packed since fuel prices began rising a month ago.
She said tradies, truckies and farmers needed fuel more than office workers.
“During the Covid crisis our members worked from home full time or close to full time, so we are suggesting those people could fire up those procedures during this war in the Middle East.
“In Adelaide our buses, trams and trains are full because people are leaving the car at home, so even just a few days from home each week could ease the burden on public transport.
“We also know some people prefer to work from the office and the union supports that, we’re not suggesting mandating working from home, just if it suits our members and their type of work,” Ms Watson said.
In NSW, the United Services Union has written to all 128 councils asking them to allow staff to stay home and keep fuel in the bowsers.
Union head of legal Daniel Papps said some workers were driving 100km round trips to work and were calling for higher kilometre reimbursements.
“In times of war all ideas are welcome to deal with fallout, and in this case fuel shortages are front of mind,” Mr Papps said
“We are open to any ideas that will leave more fuel in the pump for Aussies who really need it.
“Most of our members are already struggling financially and a doubling of their fuel bill is not something they can easily afford.”
One Nation is calling for fuel rationing, but the government has been adamant that rationing is not required. They have also signalled any fuel price responses decided on Monday will not be mandates.
South Korea is one of Australia’s major suppliers of refined oil; this week the government released a 12-point energy saving guideline, including charging phones and EVs during the day, shorter showers, and using household appliances on the weekend.
Cars belonging to the Korean public service have also been divided into five groups, and only four of the groupings can be driven on any one day.
South Korean Energy Minister Kim Sung-whan said restrictions on private sector vehicles were voluntary for now, and the public fleet restrictions would be closely monitored.
On March 10, the Thai Prime Minister ordered all civil servants to work from home where possible. Airconditioning in Thai offices has also been lifted from 26C to 27C, and workers do not have to wear suits and ties so as to stay cool.
Australians should continue to don suits and ties, say the business groups who fought hard for return-to-office mandates following the pandemic.
Australian Industry Group chief executive Innes Willox said governments saying there was no fuel shortage – but then suggesting working from home – would create panic and confusion.
“Australians have repeatedly been told there is no immediate fuel supply issue and there is no need to panic buy. Suggesting people work from home is counter to that message and only adds to a sense of dread and panic,” Mr Willox said.
“This is not the time for mixed messages. Our economy is increasingly fragile with rising inflation and interest rates, concerns about the strength of the labour market and an apparent acceptance that productivity will remain the doldrums for years to come. Panicky messages about working from home will only serve to do more damage to our economic fabric,” Mr Willox said.
Business Sydney executive director Paul Nicolaou says more people using public transport is an adequate response to the high fuel prices.
“It is unfortunate that a retreat to WFH has been suggested as a fuel-saving measure to address current international uncertainty,” he said.
“The gains achieved in encouraging people to return to their workplaces at least three to four days a week, particularly in the CBD, have been hard won.
“We don’t want to go backwards on WFH and we don’t have to. We are seeing more people leaving their cars at home and using public transport to get to and from work.”
Since the end of the pandemic, the Metro has begun running through central Sydney, Mr Nicolaou points out.
“Workers might think they’re getting mixed messages on WFH but many, having rediscovered the benefits of being in the workplace, will embrace fuel saving options to get to work.”
The Property Council of Australia says fuel price pressures are an opportunity to focus on the public transport networks available in the major cities.
“Flexible work is already deeply embedded across Australia, and offices continue to play a critical role in collaboration, productivity and innovation, and they support vibrant city centres that sustain thousands of small businesses and local jobs,” council policy executive Matthew Kandelaars said.
“That ecosystem relies on a critical mass of people being present. Short‑term adjustments in how and where we work will always occur.
“But over the longer term, the Australian economy is at its best when our CBDs are full, connected by strong public transport, and firing on all cylinders.”
