Victorian Premier Jacinta Allan today announced the start of a new Victorian-first initiative. Their new Transportation Access Plan will provide flexibility for their employees to work remotely at least two days per week. The government has said they will introduce legislation for this proposal in 2019. Given that labour relations the issue legitimately broke through the noise of this year’s federal election, it represents a seismic change of fortune. The plan will likely face constitutional challenges. This is due to the fact that industrial relations laws are traditionally a matter exclusively within the control of the federal government.
Allan was most passionate about how the initiative would improve workers’ lives. Beyond that, it delivers huge value to private sector firms. She pointed out that whenever you give employees the flexibility to work from home, productivity goes up easily by 30 percent. “When we can work from home, they are doing more hours — up to 20 percent more hours,” she stated.
Legislative Plans and Challenges
The Victorian government’s proposal would go further, not just building out protections under current labor law, but creating remote work specific protections. Social Services Minister Giuseppe Carabetta claimed the plan would have a positive impact on women and caregivers. He thinks that will allow them to more effectively juggle competing demands of work and home. He remarked, “So we have the Victorian premier here going, ‘Why don’t I go the other way, this is keeping with what a lot of workers want, what the unions want, and it’s progressive.’”
Carabetta knew what was in store. To advance those laws, the federal government needs to address constitutional obstacles that would threaten their implementation. He warned that employers will likely be taking the new rules to court claiming that they violate the federal Fair Work Act. As they obviously plan to do, they would need to dance through the real and substantial constitutional minefield extremely delicately,” he continued. These challenges are undeniably significant and need to be navigated thoughtfully.
Given these hurdles, Carabetta said Victoria’s plan sounded like it was “a bit in the weeds, legally.” Still, Mr. George is hopeful that the initiative can improve conditions in workplaces across the country.
Political Reactions and Opposition Views
In fact, the proposal has inspired a very unusual and mixed reaction from political leaders. Scott Veenker, one of the new opposition members, questioned the need for such legislation. He stated, “We don’t think this is in their realm of control as far as dictating how businesses should be accommodating their staff.” He noted that many businesses already recognize the importance of flexibility in sourcing and retaining talent: “Roles advertised at the moment are absolutely listing work from home as a benefit, if it works for the organization.”
Other rank and file members have distanced themselves from the choice made by federal opposition leader Peter Dutton. They continue to overwhelmingly favor remote work policies. Victorian shadow transport minister Brad Battin said “hybrid working is a very large part of the future,” confirming politicians’ understanding of the transformative nature of modern work.
Federal Minister Tanya Plibersek has been coy about intervening on Victoria’s trailblazing initiative. Home remains an office alternative, she added, noting her administration’s ongoing support for work-from-home arrangements when they’re possible for employers. “We’re not marking their homework, let’s put it that way,” she remarked, indicating a hands-off approach to state-level labor initiatives.
Implications for Employers and Employees
The proposed legislation aims to provide a framework for employees seeking flexible work arrangements while ensuring businesses can adapt to these changes. Allan stressed that improving working conditions aligns with economic interests: “When they’ve got the opportunity to protect something that works for workers and is good for business and the economy, then of course I’m going to take that opportunity.”
Negotiating for remote work is the latest evolution of a national shift in labor relations, with employee desires more and more dictating workplace practices. That’s why more organizations are leaning into the hybrid model. The Victorian government’s move may well pave the way for other states and territories to take a look at analogous measures.
