Some Wellington businesses are asking the Government to make workers stop working from home, following Amazon’s lead. They believe this could help improve the economy, which is described as “icy” in a recent Kiwibank report.
In Wellington, nearly a quarter of the workforce is made up of public servants, with another 16% working in local government and education. Businesses want government employees to return to their offices to increase foot traffic and help struggling businesses.
Sanjay Dayal, who sells produce to local eateries, feels the city is too quiet. He recalls how busy Cuba Street used to be and plans to move his shop to a busier area. He points out that businesses pay higher rents in city centers for foot traffic, which has dropped significantly due to remote work.
Dayal believes that if government workers returned to their offices, it would revive the city. He sees a link between the empty streets and the decline of local businesses. Roger Young, owner of Fidel’s Cafe, agrees, noting that his restaurant recently experienced its slowest week in 25 years. He wants the government to encourage workers to return to uplift the city’s atmosphere.
Young adds that returning to the office would improve productivity and mental health, since working from home can cause isolation. Rhys Kaan, owner of Caffeinated Dragons, thinks having government workers back would help, but he recognizes job cuts in the public sector have already harmed businesses.
Other local businesses have adapted by moving to the suburbs, where more people work in person. Mia and Tim Tracey of Pickle and Pie opened a bakery in Ngaio instead of the city because their city customers are often at home.
The Restaurant Association president, Mike Egan, points out that fewer people in offices hurt businesses’ earnings. A recent report noted hospitality sales in Wellington dropped 5.5% in early 2024, while national sales grew.
While there’s debate about remote work, employment lawyer Susan Hornsby-Geluk says forcing employees back depends on their contracts. If a contract states work must be done in the office, employers might require a return. However, if employees have been working from home for years, they may argue that this has become an accepted practice.
