Call for Premier Jacinta Allan to order Vic public servants back to office, full-time like NSW

The Allan government is refusing to follow the lead of NSW and order public servants return to the office full-time despite Melbourne CBD having the highest office occupancy rate in the nation.

The Victorian government is refusing to follow NSW’s lead and demand public servants return to the office full-time, despite business groups’ pleas to help revive Melbourne’s struggling CBD.

The Allan government has instead doubled down on its policy allowing staff to work from home twice a week, saying it hopes the flexible deal could attract some bureaucrats across the border.

On Monday, the office of NSW Premier Chris Minns sent a government-wide memorandum, outlining new expectations for public servants to work from an approved office space every day of the working week.

Mr Minns also fired back at the Allan government’s attempts to poach Sydney bureaucrats and came out swinging against his Victorian counterpart.

“I’ve seen the Victorian Government knock New South Wales for this change. We’re not for changing. We think it’s important for the public service in New South Wales,” he said.

“And at the end of the day, frankly, with all of the lockdowns in Melbourne, I would have thought a lot of people in Victoria would be desperate to get out of the house, but that’s a matter for them.”

Currently, Victorian public servants are expected to work from the office at least three days a week under a “flexible work policy”, which has been in place since March 2021.

But Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra called on the Allan government to match the New South Wales policy.

The Allan-government says it won’t be following the lead of NSW. Picture: Ian Currie

It comes after the Herald Sun revealed that Melbourne’s office vacancy rate is the highest in the nation, increasing to 18 per cent over the six months to July – up from 16.6 per cent in January and 14.9 per cent in July last year.

The report, published by the Property Council of Australia, prompted fresh calls for the state government to “show more active leadership” and ensure public servants are attending the office at least three days per week.

The government did not respond to questions about whether its departments actively monitor how often public servants are working from their desks.

Mr Guerra said working onsite offered “real benefits” including greater productivity, innovation and a “clear economic benefit to the city”.

“The signal from NSW is a positive one for business and we encourage the state government to follow,” he said.

“For our economy to recover and forge ahead, we need to increase collaboration between the public and private sector. We know that is best done in person and we encourage Victorian public servants to follow the lead from NSW.”

Property Council of Australia Victorian executive director Cath Evans added the shift is “encouraging for the Sydney economy”.

Melbourne has the lowest office occupancy rate in the nation. Picture: Ian Currie

“With the Victorian Public Service representing over 30,000 CBD workers pre-Covid, we call on the Allan government to issue a similar directive to the Victorian Public Service and get them back to work in the office,” she said.

“The benefits to productivity and workplace culture from working in the office are well established.”

But an Allan government spokeswoman said the three-day onsite work week would remain, and instead tried to poach public servants from New South Wales public servants.

“We have no plans to roll back the existing flexible working arrangements,” she said.

“We know that flexibility in the workplace helps more women stay in work and more women in the workforce is better for everyone.

“Any public servants from New South Wales who like flexibility in their workplace should consider moving to Victoria.”

Business groups say the Allan government needs to show more leadership. Picture: Ian Currie

In June, the Herald Sun revealed that public servants were shunning calls to return to the CBD for work, with data from pedestrian sensors near public sector office hubs showing lower levels of foot traffic than the rest of the city, suggesting fewer public servants were attending the office compared to other city workers.

Lord Mayor Nick Reece said he “welcomed” the news that the NSW government is directing its staff back to the office, after he last week called on the Victorian government to do better.

“At the City of Melbourne, we expect people to work from the office, while also implementing modern flexible arrangements for those who need it,” he said last week.

“I would strongly encourage both the state and federal governments to adopt this approach.”

Former deputy lord mayor Arron Wood, who is running for Lord Mayor in the upcoming local council election against Mr Reece, said: “Getting people back into the city is a good thing for the City of Melbourne, and for bringing people back together.”