Much talk this weekend about Victorian Labor announcing it will enshrine #WFH as a right as part of its 2026 State election pitch. Doubling down on the negative public reception from the Federal Liberal Party of Australia's election policy to end WFH for public servants.
There have already been some major shifts in WFH entitlements through recent EBAs for the public and finance sectors, where the presumption for allowing WFH was reversed.
The impact on the Melbourne CBD remains palpable, where office vacancy rates remain in the doldrums at around 60%. Public transport ridership is also down, materially below pre-pandemic levels.
It's an interesting position when Jim Chalmers is seeking to improve deteriorating #productivity across the nation.
My personal experience interacting with the public sector has materially deteriorated since COVID/WFH came into play. One can no longer call an office and know someone is there; now we have generic email addresses and delays from people just not being around due to flexibility and being uncontactable. It has delayed #developments by months and years.
WFH evangelists pretend it's a productivity improvement, but let's be real – it's about lifestyle. It will become worse again if the four-day week takes hold.
🤔It's smart, populist politics to double down here. Human nature is not to give back an entitlement once you've had it, no matter the broader consequences.
Foisting these rules on the private sector will become yet another barrier to private investment in Victoria. The State is already perceived as the worst place in the country to do business, and this will only add fuel to that story, against a backdrop of unemployment starting to tick up.
I've argued that the longer WFH remains a thing, the more businesses will accelerate moving away from local employees (and workplace #regulation) to implement teams based outside the country.
Bringing it back to my world of #housing and #infrastructure: 1. This will only further increase demand for larger dwellings with workspaces – small #apartments around activity centres will not be fit for purpose 2. How has reduced ridership been modelled in business cases for #metrotunnel and #suburbanrailloop (hint: it hasn't, making the economic justifications far worse on both).
P.S. Before attacking me for being a mean capitalist, Intrapac Property has allowed flexible working well before it was trendy. But I also believe businesses should be able to choose the arrangements that suit them and their needs, not be dictated to by the government.