Will the government step in to allow WFH as fuel costs surge?

Implementing a blanket work-from-home (WFH) mandate might not be necessary despite the international energy watchdog suggesting that the arrangement can help alleviate the burden of surging fuel costs, according to the Australian government.

The International Energy Agency (IEA) recently suggested that working from home is one of the immediate actions that governments, businesses, and households can take to reduce the economic impact of oil market disruptions amid the conflict in the Middle East.

Working from home "displaces oil use from commuting, particularly where jobs are suitable for remote work," the IEA said.

The suggestion is aligned with recent steps taken by other governments across the world, such as the Philippines, Vietnam, and Thailand, amid surging fuel prices.

In Australia, Energy Minister Chris Bowen acknowledged that working from home is a "sensible thing to do in any environment," but noted that a blanket approach might not be necessary.

"Work from home has become an important part of Australian working life. And again, I think some people would already be doing that. There are other people for whom it's not an option," he said in a recent interview.

"I don't think a one-size-fits-all approach is necessary and that IEA report is really, if you like, a smorgasbord of options for all countries around the world to look at in terms of their own personal circumstances."

Business opposition to WFH

Bowen made the remarks as business leaders across the country expressed opposition to government intervention on working arrangements amid the emerging fuel crisis.

Andrew McKellar, chief executive officer of the Australian Chamber of Commerce and Industry, said he does not support calls for mandatory WFH.

"Obviously, if you have staff who don't need to travel, then it makes sense in some of those cases for people to work from home. But I think at this stage people are approaching that in a sensible way," McKellar said in an interview.

The CEO also pointed out that one of the "worst things" to happen during COVID was states taking a different approach to the problem.

"Every state had a different solution. You know, some states were in lockdown and some weren't. We don't want to go back to those days. Nobody wants to go back to those days. I think here organisations are using their common sense," he added.

Chris Lucas, founder and CEO of Lucas Collective, also warned against working from home.

"Calling for WFH is a poorly considered reactionary move that would only further erode employment and the economy, placing even more pressure on a faltering economy," Lucas told the Australian Financial Review.

"I'm not sure anyone wants this. A more practical approach should focus on actions to ensure our economy and workers' lives are not impacted."

Tim Gurner, founder of the Gurner Group, also told the AFR that introducing WFH would cut the business momentum of bringing employees back on-site.

"Short-term flexibility during specific events makes sense, but as a broad signal it risks slowing economic activity, reducing productivity, weakening culture and performance over time," Gurner told the news outlet.

Mike Schneider, managing director of Bunnings Group, added that it was too early for blanket calls on WFH, according to the AFR report.

"Blanket calls to work from home overlook the fact that every business is different," he said. 

What is the government doing?

The Australian government is already establishing a new Fuel Supply Task Force that will be led by former Climate Change Authority chief executive Anthea Harris to prepare for the impact of the ongoing crisis.

It is also focusing on protecting the country's trucking industry from rising fuel prices.

The Department of Employment and Workplace Relations (DEWR) said it will amend the Fair Work Act to allow truckies and other road transport businesses to make emergency applications for a contract chain order to deal with the spike in fuel prices.

Current rules require a minimum of six months for a contract chain order, but the amendment will scrap the wait time to ensure that truckies and transport operators are paid to cover the cost of fuel.

"Truckies and transport operators need to be protected from fuel price rises and it's important that costs are shared fairly through the supply chain," said Employment Minister Amanda Rishworth in a statement.

"We are making sure the independent Fair Work Commission can act quickly to deal with these issues."