Will office work directive be a capital lifeline?

Tuesday, 24 September 2024

Nicola Willis announces plans to make public service employees work from the office.

What do you think? Join the conversation in the comments section at the end of the story.

Directing public servants to stop working from home without agreement has brought relief and optimism to Wellington retailers and restaurateurs.

In an announcement on Monday afternoon, Public Service Minister Nicola Willis said “working from home is not an entitlement and must be agreed and monitored”, while emphasising all people continue to have a legal right to flexible work arrangements by agreement with their employer.

But, as the employer of thousands of public servants, which make up about a quarter of Wellington’s workforce, Willis was clear: “if it’s possible for you to work in the office, you should.”

While the Public Service Association and opposition politicians accuse the Government of distraction and scape-goating, Epic Hospitality owner Greig Wilson said he’d been “dancing around the living room celebrating”.

“We feel like central Wellington is on its knees right now,” Wilson said. “Where there is people, there is money.”

He said even if everyone who returns to the central city to work can’t spend much, $20 per person over thousands of people adds up.

Greig Wilson of Epic Hospitality is delighted that public servants have been reminded to work from the city centre.

In response to the news, Wilson said he may be able to extend his businesses hours – Wilson owns El Barrio, Vinyl Bar and more – and possibly hire more staff.

“All we’ve done this year is cut costs and reduce staff, so this can only be good for the Wellington economy and good for New Zealand.”

But he wished the Government had gone as far as mandating a minimum number of days public servants need to be in their offices, rather than leaving it up to individual managers and employees to agree on work-from-home arrangements.

On Monday, Willis said she was loathe to set minimums lest public servants think they were entitled to minimum work from home days too, which they were not. She will be expecting government agencies to start collecting data properly about who is working from home, and the impacts it is having on productivity.

“Businesses will take what we can, we’re looking for wins,” Wilson said.

Hospitality NZ, too, is thrilled with the news. Chief executive Steve Armitage said foot traffic was essential for the sector.

What will it take to fill the city centre with people - people who spend money?

“Our members and other hospitality businesses have reported that Mondays and Fridays, which are the most common work-from-home days for the public service, have seen a big drop in patronage.”

Restaurant Association chief executive Marisa Bidois, agreed. Balance, and making sure working from home was the exception and not the rule, was essential, she said.

“Flexibility is essential in today's world, but it's important to regularly review and monitor its impact, as these decisions affect the broader economy.

“Many of our businesses cite working from home as a key factor contributing to the downturn they’re experiencing.”

Councillor Nicola Young told The Post she was “delighted” with the news.

“This will bring life back to central Wellington. It will help the cafés, it will bring back the city’s vibe. A lot of businesses are really on the brink and this will be a huge help for them.”

Asked whether public servants might be resentful of government, Young had a short response: “Do they want a job?”

“It’s a new thing, working from home, and it’s been a disaster for businesses. If you work, the expectation is you go to your work. We need to get back to normal.”

Wellington City Councillor Nicola Young says if people want jobs, they need to work from their workplaces, not home.

With so many public servants recently out of a job, Young said making sure getting the remaining staff back into the city was a “start”.

“We can’t solve everything in one go.”

In a statement, Wellington Mayor Tory Whanau called the news a positive development for local businesses, but said work arrangements were just one issue.

“We must also look holistically at our local economy and recognise that huge public-sector job cuts and the cost of living are also having a big impact on Wellington’s hospitality and retail sector,” she said.

“I hope central government will also move to give public servants more surety about their jobs going forward so they have the confidence to spend and support local business.”

The Public Service Association (PSA) has accused the Government of using work-from-home as a scapegoat for Wellington’s problems.

The number one cause, according to the PSA, was the thousands of public servants made redundant since the Government took office.

Francisco Hernandez says the Government’s job cuts are to blame for Wellington’s woes, not work from home arrangements.

“Taking the spending power of thousands of public service workers out of the Wellington economy is what is damaging businesses, and the Government must take full responsibility for its poor leadership and economic management,” PSA national secretary Duane Leo said.

“Simply telling workers to come back to the city a few more days a week won’t revive the Wellington economy. In a cost-of-living crisis, people are already saving money by making their own lunches and cutting down on coffees and after work drinks.

“The Government should be investing in public services and stop blaming public service workers for the damage caused by its own policies.”

Green Party spokesperson for the public service Francisco Hernandez called Monday’s announcement “laughable”.

“If we want to reinvigorate the heart of our cities, we need to support public and active transport, bolster our urban density and stop gutting public services, slashing jobs and cutting incomes.”

Correction: Greig Wilson no longer owns Ivy Bar and Cabaret. Steven Mawhinney has been the owner since 2018. (Amended September 25, 2024, 2.30pm)