Employers suggest discounted public transport fares, among other measures, to cushion the impact of fuel shortage
Employers across Australia are reporting increasing levels of absenteeism in the wake of the fuel crisis due to the conflict in the Middle East, as the federal government is urged to take on a national response to address the problem.
The Australian Industry Group (Ai Group) on Wednesday warned that feedback from employers indicates productivity and output challenges resulting from current and anticipated fuel shortages.
"Deep concern about the future is producing unintended and unforeseen consequences that are playing out in workplaces," said Innes Willox, chief executive of the Ai Group, in a statement.
"Employers are already reporting an increase in absenteeism among workers across the economy in sectors such as construction, manufacturing, retail, and care."
Reports of absenteeism come as suggestions to work remotely gain traction overseas, but some major employers in Australia have rejected the recommendation.
Energy Minister Chris Bowen also noted that a blanket work-from-home approach might not be necessary amid the varying natures of work in Australia.
Further impact on employers
Absenteeism is not the only consequence anticipated from the ongoing fuel crisis, according to Willox.
"There is also an increased focus by employers on the future impact of petroleum shortages on areas such as packaging, plastics, detergents, piping, roofing, and insulation among others, upon which the broader economy relies," he said.
"Employers also report existing supply chains are becoming more fragile and unreliable as other economies take steps to inoculate themselves. Those impacts threaten to ripple through the economy in the time ahead."
National response needed
Willox said the business impact of the fuel crisis stresses the need for the government to consider every option to "cauterise" the impending effects of the shortage.
"The federal government should now lay every option on the table while working with the states and territories to deal with the escalating fuel crisis which requires a national response," the Ai Group chief executive said.
"These options should include a possible cut to fuel excise, consideration of structured fuel rationing and discounted public transport fares."
Individual states should also avoid taking separate actions that are out of step with the rest of the country, according to Willox.
"We have seen the disastrous impact of those types of actions during COVID," he said.
"It is for this reason that industry seeks a national approach with clear directions from the Federal Government that gives greater certainty and predictability to businesses and households."
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.
Harris is expected to drive coordinated action between the Commonwealth and the states and territories on fuel security and supply chain resilience.
She is also expected to provide consistent and coordinated updates on the country's fuel supply, and support state and territory governments to get fuel to their regions where they are in demand.
