The government has directed public service bosses to record how many staff work from home, saying such arrangements are not an entitlement (file image). Photo: AFP / NurPhoto
The Government is sticking to its guns with forcing public servants back into the office, insisting it'll improve productivity and accusing some workers of taking advantage of working from home.
Public Service Minister Nicola Willis told RNZ's First Up widespread working from home had changed the culture at some departments, and in some cases was hurting performance and productivity.
There was "real value" in staff being physically present in the office, she said.
"I've had people share with me their concern, that on Mondays and Fridays Wellington can seem like a bit of a ghost town because so many people are working from home,' Willis said.
"I've had public servants themselves, in private, raise with me their concern that widespread working from home has changed the culture of their organisation and that some employees, not all, but some are taking advantage of it."
Prime Minister Christopher Luxon told Morning Report he wants the public service to be highly productive and "firing on all cylinders" and doesn't want working from home to undermine that.
A range of studies had shown productivity and professional development was better in the office, he said.
"Covid measures were special, four years down the road it's quite hard to maintain the culture."
Improvements in foot traffic for Wellington businesses was a secondary benefit.
"There's no doubt about it Wellington CBD has been suffering," Luxon said.
Asked if agencies had enough office space to accommodate everybody after many downsized, Luxon said the government's property portfolio was large.
"There is enough capacity for us to handle that."
'Demonising public servants'
Labour is accusing the government of passing the buck as it tells public servants too many are working from home and it wants more of them in the office.
Labour's deputy leader Carmel Sepuloni is concerned the government is "demonising public servants", saying 6000 workers losing their jobs will have more of an impact on small businesses than "people working one or two days from home a week."
The government has directed public service bosses to record how many staff work from home, saying such arrangements are not an entitlement.
Public Service Minister Nicola Willis stated the coalition wants more public servants coming into their place of work each day.
"Choosing not to come to your physical place of work does have an impact on your team, and your wider community. If it's possible for you to work in the office, you should."
Prime Minister Christopher Luxon added the government doesn't want "any compromise of performance of the public service whatsoever by virtue of working from home".
Sepuloni said she thought Willis needed to "take responsibility" instead of "passing the buck and saying it's because public servants are working from home that small businesses in Wellington Central are suffering".
"Perhaps she needs to reflect on the fact that she just saw 6000 public servants lose jobs under her watch, and it was a deliberate move by her government."
The Restaurant Association said the government's directive to have more public servants working in the office was a welcome boost for struggling businesses.
Chief Executive Marisa Bidois said its members had reported less lunchtime foot traffic and fewer people going for after-work drinks or dinner on Fridays.
"It's been a difficult few years for the industry, and one of the things that many businesses have cited is the working from home phenomenon as having a major impact on their business."
Restaurants were struggling with other economic pressures too, but having more people in the city each day would help - especially in Wellington, Bidois said.
A retail strategy consultant said inner city businesses would benefit from the government's directive to have public servants working in the office more, but that alone would not solve their financial pressures.
First Retail Group managing director Chris Wilkinson said businesses were struggling with less people in the city - but they were also suffering because people had less to spend.
"We've got significant economic headwinds at the moment, a lot less discretionary spend, in fact significantly reduced discretionary spend, and that's essentially where business for hospitality organisations come from."
Wilkinson added that it was not a problem unique to New Zealand, with the United Kingdom facing similar issues.
"There's no activity on Friday nights anymore, like there used to be. Thursdays are the new Fridays."
He said you needed people in cities to create vibrancy.
"But equally, I think our cities need to earn that return, and that's around creating those right, right environments, making sure that our transport systems are going to be reliable and frequent and affordable."
'Huge help'
Hospitality NZ chief executive Steve Armitage said it would not be a silver bullet, "but it will be a huge help".
"Just having people back in in the city centre, creating that sense of vibrancy, of energy, and of community is going to be a huge help.
"But of course, we want to ensure that that converts itself into people coming into hospitality establishments and enjoying the high quality offering that Wellington vendors and venues are providing day to day."
Wellington Chamber of Commerce's Simon Arcus said the government announcement would have a positive impact on the city.
"The public service makes up a huge proportion of Wellington's workforce, and their absence has been notable in recent years."
He said footfall was critical for a number of industries, especially retail and hospitality. Arcus added those sectors had been struggling with a lack of customers given more people were working from home.
"Many businesses have gone from expecting several days of profitable trading to turning a profit only one day a week."
Arcus pointed out CBD businesses paid the highest levels of rent, rates and insurance and "rely on a thriving central city to survive".
'Productive at home'
Public servants reacting to the announcement pointed out that flexibility was important, but others acknowledged it was a privilege.
"Coming to work every day doesn't mean it will translate into productivity."
"I have one son, taking care of him needs some more time at home. I may need to take more annual leave."
"We do need to have that flexibility to have work life balance."
"I'm quite productive at home and I find just being able to not have the office noise going on around me, I can actually achieve quite a lot."
Public Servants Association national secretary Duane Leo said the move was a political reaction blaming public servants for a problem the government created.
"For the last year we've had this government go through and slash and cut deeply public service workers across agencies - across the country basically - but it's really being felt here in Wellington."
He pointed out the coalition's cut meant many agencies had downsized.
"Where are these staff going to go?"
Leo said the move would not make a difference.
"In terms of modern workplaces, efficient workplaces, this decision is out of step."