Concerns Melbourne CBD will never recover unless workers return regularly

Free lunches and pets-welcome policies are being offered by Melbourne businesses to counter the “ongoing complacency about working from home”.

Free lunches, yoga classes and pets-welcome policies are among incentives being offered to lure workers back to their offices.

Employers and building managers are reporting a gradual increase in the number of staff returning, but some days are more popular than others.

General manager of 101 Collins Street tower, Peter Calwell, said at least 60 per cent of the building’s workers turned up on Tuesdays, Wednesdays and Thursdays.

“Mondays and Fridays are more patchy, and work patterns have changed overall,” he said.

“While people are coming into the office more they might leave late, come in early, leave early – I think the nine to five scenario is pretty much gone now.”

Mr Calwell said that while the tower’s businesses were keen to get more staff back in the office, they weren’t making it compulsory, so incentives were needed to attract people.

“We have a wellness centre, called Rise, and we are finding that new tenants moving into the building see it as a really positive opportunity that makes their staff feel better about coming back to the office,” he said.

101 Collins workers are offered the choice of more than 30 free wellness classes, such as pilates, boxing, yoga, and meditation.

They have also had access to servicing of bicycles, and building management strongly promotes the precinct’s eateries and any hospitality discount offers.

Southbank-based travel company Luxury Escapes provides staff with free lunches prepared by chefs most days, special wellness days, and the ability to bring pets into the office.

Company co-founder and CEO Adam Schwab said it was better for staff and the business if people worked from the office as much as possible.

“We think it’s better for employees’ mental health, collaboration, and efficiency,” he said.

“And that doesn’t mean people working five days a week, 10 hours a day — we’ve always been a workplace that embraces flexibility as much as possible, especially involving personal circumstances.”

Travel company Luxury Escapes provides free staff lunches most days. Picture: Wayne Taylor

Mr Schwab said being back in the office was more than just getting a free lunch.

“It’s also sitting with friends, and a great way to meet people you haven’t otherwise met, especially after two years of Covid,” he said.

“It could be the CEO sitting next to the person who started yesterday, or the commercial manager next to someone from content.”

“It’s about how do we cost effectively make the workplace an enjoyable environment.”

Property Council of Australia Victoria executive director Danni Hunter said the office experience must be first class, and many firms were being innovative to lure back workers.

“Many businesses are updating their office style and decor, taking steps to increase the local amenity, and in many cases actively looking to find new digs that tick all the boxes for their staff,” she said.

“They’re also prioritising the creation of genuine office communities through team days, wellness activities, lunch clubs – things people can do together in person that we can’t do at home on a screen.”

State public servants are supposed to be working at least three days a week in offices.

There may be no lawful mechanism to require workers to return to their desks. Picture: David Crosling

Call for return to work mandate

Almost half of Victoria’s public service workers are refusing to go back to work regularly, the state government has admitted.

New data released to a parliamentary committee has revealed just 53 per cent of Victorian Public Service employees are regularly working from the office.

Critics say the failure to get the state’s 50,000-odd VPS employees back at their desks is stalling a much needed CBD recovery.

Victoria’s working from home mandate was lifted on February 25 but ongoing flexible working conditions mean workers are only required to work three days per week in the office.

It is understood legal advice prepared for the state government has warned there may be no lawful mechanism to require workers to return to their desks.

The new data has prompted calls for the government to mandate a return to work for all staff.

Mr Andrews said he expected two-thirds of the Victorian public service to return to their office desks, but acknowledged he did not know the timeframe for that to occur.

But the Premier said the issue wasn’t limited to just government staffers.

He said big private sector businesses also weren’t confident they would get much above 50 per cent of their respective workforces back to the office.

Data shows 53 per cent of Victorian Public Service employees are regularly working from the office. Picture: David Crosling

“On the current, you might find you’ve got more public servants as a percentage than you do people working at banks for instance,” he said on Sunday.

“We’re playing our part — no one should be in any doubt about that.

“We’re there to work as hard as we possibly can, and I think we will get two-thirds of our VPS staff back and hopefully the private sector does the same.”

Mr Andrews said the city had bounced back from Covid, noting it is “quite hard” to get a table at a restaurant or a room in a hotel.

“We’re back, and not just in Melbourne, but in the suburbs and across the regions,” he said.

“There does seem to be some people who are just endlessly critical.

“I’m not here to bag the CBD. I think it is visibly noticeable. When I talk to big restaurateurs — people who own and run several restaurants and other businesses — they tell me that we are back.

“But we won’t settle for that.”

Mr Andrews acknowledged that not every business was thriving, but said the bigger limiting factor is staff shortages.

David Southwick says Daniel Andrews needs to show some leadership to get workers back. Picture: Sarah Matray

Opposition spokesman for CBD Recovery, David Southwick, said Melbourne was suffering because of an ongoing complacency about working from home.

“The CBD will never recover and workers will never return unless Daniel Andrews shows some leadership to get workers back,” he said.

“City traders cannot run their businesses without 9 to 5 foot traffic and the longer the lack of action from Andrews the more likely we will see more small businesses close.

“The government should lead by example and bring the public sector back first, even if we accept workers will only return 3 days a week let’s roster them over the week to spread the love and support the struggling small businesses.

“Melbourne will never become the worlds most liveable city again without a thriving CBD Monday to Friday.”

A government spokesperson defended the 53 per cent figure and said it was a two-months old best estimate.

But he said the costs of measuring employees’ time in the office would be prohibitive and come at the expense of service delivery.

“The VPS supports the clear benefits of ongoing flexible working, including enhanced productivity and value for Victorians,” he said.

Small Business Australia executive director Bill Lang blamed the government for reducing Melbourne to a “ghost town”.

Bill Lang (left) says the current situation is a ‘CBD emergency’. Picture: Alex Coppel.

“Holding the city hostage to the longest lockdown in the world has created a situation where Mr Andrews’ public service is now dictating when and where they work,” he said.

“This is a CBD Emergency, with the city crippled financially and when faced with previous emergencies Mr Andrews has had no hesitation implementing mandates that closed businesses, prevented people from working and even went as far as to close children’s playgrounds.

“Action is needed now before the reputation of Melbourne as one of the world’s great cities is irreparably damaged, we need policies that addresses both public and private sectors workers returning to work, along with effective programs to make Melbourne welcoming and encourages people, both local, interstate and internationally to return to Melbourne.”

Melbourne has fallen to eight on the world’s most liveable cities list, with coronavirus shutdowns and health concerns blamed for the fall from second place in 2019.

The city had topped the Economist Intelligence Unit’s (EIU) liveability index for years, but was pipped at the post by Vienna two years ago.

Premier Daniel Andrews has repeatedly said he didn’t expect workers would return to standard office hours.

Sources working across multiple government departments and agencies have told the Herald Sun the requirement to work from an office three days a week was being openly ignored.

The Australian Public Service Commission wants an end to working from home arrangements put in place because of Covid-19.

Data shows just one third of Victorian-based Commonwealth public servants are now working from home on a given day.