Business leaders up in arms over Victoria’s delayed return to office

Office workers will be allowed to remain based at home for longer than first thought. Here’s when Dan Andrews is set to ask they return to their worksites.

The state government is not set to order Victorians back to work for at least another month.

The Saturday Herald Sun can reveal the government is planning to keep its work from home order until March – with business leaders warning it will cost the Victorian economy tens of millions of dollars a week.

The majority of office workers have now been working from home for almost two years while crowds were allowed at the tennis and theatres, nightclubs and restaurants are full.

On Friday the state’s biggest employers, industry groups and Lord Mayor Sally Capp called for the work from home directive to be reversed, warning it was costing the economy tens of millions of dollars a week and decimating CBD businesses that rely on city workers.

It is estimated up to 90 per cent of workers are still working from home, two years after the Covid crisis erupted with many workers following the government recommendation because they do not want to wear a mask at work.

More than 90 per cent of workers are still working from home — two years after the Covid crisis began. Picture: Alex Coppel.

Premier Daniel Andrews said this week mask rules would not be changing “any time soon”. The Property Council of Australia’s latest Office Occupancy Survey showed office occupancy in the CBD had reached just 12 per cent, the lowest rate of any state or territory.

Small Business Australia executive director Bill Lang said half of all small businesses were continuing to lose money.

“Those traders in the city who have managed to survive the Victorian government’s economic crippling response to Covid are on their knees as their continued policy of fear sees Victorians staying out of the CBD,” he said.

“This is an unsustainable situation and unless the Victorian government wants to see the CBD and its surrounding districts become a permanent ghost town urgent action is needed and that first step must be the mandated return of all public servants to their offices.

“The policy of fear must end, that needs to start with the removal of mask wearing and an end to QR code check-ins, we must follow what we are seeing overseas in nations such as the UK and Denmark and move immediately to remove all restrictions, except in the most vulnerable of health settings, it is only then that we will be truly ‘living with Covid.’”

Among the near empty buildings is the National Australia Bank’s new $950 million Bourke St office that can accommodate 7000 workers but has just a 100 people in it a day.

NAB chief Ross McEwan said it was time to let people back into the office safely unless they were feeling unwell.

In recent weeks just 100 employees a day have been turning up to its new city headquarters that can accommodate about 7000 staff.

Business leaders have questioned why we can return to cafes and restaurants and not the office. Picture: Alex Coppel.

“Governments have rightly had a huge focus on protecting everybody’s health. Now most of us are vaccinated, it’s up to each of us to take responsibility. If people are not feeling well, they should please stay home. But if they are feeling well, let them come into the office safely. Let’s encourage it so that we can get businesses going again,” Mr McEwan said.

“I’ve been down Chapel Street and Bridge Road recently where nightclubs and restaurants have plenty of patrons, which is terrific. You can go to the tennis, the football, and we have children back at school, however we are still asking people to work from home.”

Property Council of Australia Victorian executive director Danni Hunter said there was no reason workers couldn’t get back to their desks.

“With this work from home encouragement businesses aren’t even able to plan and start to have those discussions with their staff because they’re concerned,” she said.

“So it’s about giving businesses the ability to have those conversations with their staff and to plan around that.

“If we can go back to restaurants and we’ve got the tennis happening, and we’re moving about our lives in ways that have much less restriction on movement than we used to, then why is it that we can’t return to the office, return to highly regulated, clean environments where they’re very used to being Covid safe and implementing the requirements around Covid safety and where there’s enough space to socially distance. We should also be able to remove masks in that environment.

“We know people actually want to come back and they want to collaborate and reconnect with their peers in person.”

The Property Council of Victoria said there was no reason why Victorians couldn’t return to their desk. Picture: Alex Coppel.

Ms Hunter said Melbourne’s central city economy supported about 500,000 jobs and produced about seven per cent of Australia’s GDP and 25 per cent of Victoria’s GSP at its peak.

“If there’s enough social distancing so that you’re a metre and a half away from each other when you’re at your desks, then we should have the ability to remove masks in a way that restaurants and other hospitality venues can,” she said.

Lord Mayor Sally Capp said enormous social and economic benefits would follow if the government dropped the work from home recommendation.

“These include the survival of small businesses in the city, the employment and training of workers in these businesses, a reduction of loneliness and isolation and a consequent improvement of mental health, and a significant economic productivity uplift associated with increased collaboration,’ she said.

Victorian Chamber of Commerce and Industry chief Paul Guerra said businesses wanted a clear and direct signal that office workers can return.

“And we want a clear indication of when masks can come off while sitting at your desk, as we know this is a major disincentive to attend the office,” he said.

“Our view is we should be shifting to a mantra of “If you can go to the office, you should go to the office” Even if that’s only for a few days each week.

“We believe that the same level of self-determination and responsibility that people are currently practising regarding staying home and avoiding public social settings can be applied to the work environment.”

People can pack out nightclubs, but a return to work is considered unsafe. Picture: David Geraghty

Mr Guerra also called for further business support to boost the economic recovery.

The NSW government is poised to unveil a new economic support package to help revitalise Sydney’s CBD, with hopes the Victorian government would follow suit.

Mr Andrews said the Victorian government had already provided more than $10 billion in business support, and flagged further relief options were being canvassed.

Shadow Minister for Small Business and CBD Recovery, David Southwick, said the Premier’s “stubborn approach to face masks and work from home rules” was stalling the state’s recovery.

“Melbourne is the gateway to Victoria and we will never recover while for lease signs litter CBD shop fronts because workers and customers are staying away,” he said.

“The Liberal Nationals would remove mask mandates for office workers, lift density limits and drop the work from home directive so our small businesses can survive and thrive.”