Monday, December 23, 2024

Amazon orders all workers back into office as some Australian companies embrace flexibility

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Working from home has become a mainstay of post-lockdown life for people with desk-based jobs. 

Many argue it’s better for work-life balance, cutting out commuting, having to buy lunch out, and having independence in your working location and arrangements. 

But in the years since the COVID-19 pandemic began in March 2020, companies and governments have started to diverge on whether people need to logon in the same building as their colleagues.

Some, such as tech company Atlassian, are allowing their employees to work from home “forever”, saying the choice has lifted productivity and lifted retention and satisfaction rates.

Others have begun ordering staff back, such as fellow tech company Amazon, which this week announced staff would be required to be in the office five days a week from January 2025.

Amazon’s chief executive Andy Jassy said it was easier for staff to “learn, model, [and] practice” while working in-house rather than at home.

“If anything, the last 15 months we’ve been back in the office at least three days a week has strengthened our conviction about the benefits,” Mr Jassy said. 

Amazon and its subsidiaries — Prime Video, Amazon Web Services, and its advertising arm — employ around 2,600 people in Australia, according to IbisWorld, with offices in Sydney, Melbourne, Perth, Brisbane and Adelaide.

What are Australian companies doing?

The right to work from home is not enshrined in law (in contrast to the right to disconnect), instead being a right to request a flexible working arrangement depending on personal circumstances.

Australians can ask to work from home or work during non-standard hours under the Fair Work Act if they are pregnant, have caring responsibilities or in other specific situations. 

The Fair Work Ombudsman says employers can only refuse a request on “reasonable business grounds” such as cost, practicality or impact.

Around 37 per cent of employed Australians reported regularly working from home in 2023, according to data from the Australian Bureau of Statistics.

But some of Australia’s biggest employers have been gradually winding back remote or flexible working policies since 2020. 

Amazon has ordered all desk-based workers back into offices on a full-time basis. (ABC News: Kyle Harley)

Commonwealth Bank announced in July 2023 its employees would be required to be in the office 50 per cent of their working time, prompting a union challenge to the Fair Work Commission.

A case that could extend WFH rights to more than 91,000 administrative and clerical workers and potentially impact over a million workers nationally will be decided by the commission in 2025.

The review will decide whether to include a general right to work from home in the award, which could be expanded to other awards and agreements across Australia.

‘Hold them captive’

The managing director of mining company Mineral Resources, Chris Ellison, made headlines in early September after saying he wanted to stop employees from even leaving their workplace to buy lunch or coffee.

“I want to hold them captive all day long,” Mr Ellison told a company-wide meeting.

“I don’t want them walking down the road for a cup of coffee.”

Mineral Resources banned working from home in 2023, and the Perth headquarters features a gym and restaurant in order to keep its employees “glued in”, the director said.

Lisa Heap, a senior researcher in work regulation at the Australia Institute, said directives like Mineral Resources and Amazon’s were “short-sighted”  and may fall foul of the Fair Work Act’s requirements. 

“Having at least some choice … is really beneficial for both employers and employees,” Dr Heap said.

“The evidence suggests people are more productive where they have the choice, particularly around hybrid work arrangements.”  

She said the anecdotal evidence cited by employers of WFH being less productive is perceived rather than supported by data. 

When workers have been involved in decision-making around when and how they will work, productivity generally rises, Dr Heap said.

Some public servants ordered back into office

NSW public servants were told in August they should be working “principally” in office for those with desk jobs.

The directive from Premier Chris Minns’s office said the option to work from home “should not be taken for granted or considered unlimited”, and listed a “sense of belonging” to the public service and network-building as reasons that supported employees working in an office building rather than at home.

The NSW government did not strictly prescribe how many days a week people were required to come in, but said most of its 40,000-strong workforce already did not work from home, noting those employed as nurses, teachers and other frontline staff.

In contrast, the Australian Public Service (APS), which includes all federal government department and agency employees, has an ongoing “flexible work” policy introduced in March 2023 after over half of its non-frontline staff worked from home during the height of lockdown restrictions. 

During negotiations last year, the Commonwealth Public Sector Union (CPSU) secured “a bias towards yes” for APS staff requesting flexible work arrangements.

Most other state and territory governments such as South Australia, Queensland, the Northern Territory and Victoria have flagged a continued flexible approach to public servants working from home.

Where can you work from home ‘forever’?

Atlassian, which operates workforce productivity platforms such as Jira and Confluence, announced in 2020 it would allow employees to work from home “forever”.

The company still runs offices but allows workers to choose whatever combination of office or remote working suits them.

Telstra has also told employees they are able to work “wherever they will be most productive, including at home”.

A man wearing a black cap with a beard speaks into a microphone.

Atlassian co-founder Mike Cannon-Brookes supports staff working anywhere that suits them. (AAP: Dan Himbrechts)

Graphic design company Canva has an ongoing hybrid policy for staff which does not mandate any days in office, but notes people may be required to come in for team events, while Google moved to a hybrid work week of three days in-office and two WFH in May 2021 for employees worldwide.

The company allows fully remote positions however, with an estimated 20 per cent of its workforce working from home entirely.

Dr Heap noted the negativity around WFH arrangements could lead to a “hidden cost” for workers down the road, particularly in terms of gender equality. 

“It can create a culture whereby people are more valued if they come into the workplace,” she said, noting that women are more likely to have caring responsibilities and therefore request flexible working arrangements.

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