Cost of living crisis making working from home essential – workers

Employees say the cost of living crisis is making the culture of working from home essential to make ends meet, while retailers warn without increased foot traffic more businesses in cities could go under.

One employee Ginette Daniels, who works in customer service, said the cost of petrol and parking for her commute between her Māngere home and office in Takapuna has become unaffordable.

Her employer wants her back in the office three days a week, but Daniels has instead taken strike action by continuing to work from home, as she has done since the pandemic.

"It is extremely stressful financially to be in the workplace, when we can effectively work from home," Daniels said.

Four years on from the height of the pandemic and many workers continue to work from home several days a week, but the Wellington Chamber of Commerce says cities need more people spending so businesses can offset rising rents and rates.

"It's really clear we need people back on the streets. We need people enjoying the food and hospitality and all our retail. Without it they [businesses] are going to struggle," chief executive Simon Arcus said.

Recent data from investment management firm Colliers has described conditions for retailers in Wellington as particularly challenging, with shop vacancies at 7.5% in December last year, an increase from June when they were at 5.75%.

Retail NZ chief executive Carolyn Young said conditions are tough right now for members.

"The economy is going through a downturn. Consumers do not have any money in their wallet, both discretionary and non discretionary spending is down," Young said.

With nearly 3000 public sector jobs proposed to be cut or gone already, there are fears foot traffic in Central Wellington in particular will fall further.

"The kinds of businesses affected are unfortunately the same affected by Covid. They are the canaries in the coalmine. Get out there, buy a flat white and pick something up at a local store because it really helps," Arcus said.

But Unite Union said employers whose staff can work from home should continue to allow it given the country is now in recession.

"We are seeing such a tough time in terms of rising costs of living," organiser John Crocker said.

"Then when you have got people asking them to jump in the car to pay for parking, pay for gas, that is being piled on top of stresses they are already feeling. That is why we are seeing so much push back."

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