The New Zealand government is facing mounting calls to introduce flexible work arrangements and targeted financial support as rising fuel prices, triggered by the ongoing conflict in the Middle East, begin to weigh heavily on workers.
The Public Service Association (PSA) has urged the government to encourage working from home across the public sector, pointing to similar steps taken in countries such as Vietnam and Thailand to ease fuel demand.
“We’re calling on the New Zealand government to take note of these overseas examples and also encourage public sector workers in New Zealand to work from home,” said Fleur Fitzsimmons, National Secretary of the PSA.
According to Fitzsimmons, expanding remote work could offer immediate relief by reducing commuting needs and cushioning employees from the sharp rise in petrol costs. “Government could easily indicate to the public sector that more workers should work from home and it would overnight have a difference for those people,” she said.
Beyond remote work, the union is also pushing for direct financial support for approximately 23,000 home support workers, who provide essential care services to the elderly, disabled, and injured. These workers, who rely on daily travel to reach clients, are reimbursed at 63.5 cents per kilometre, an amount the PSA says no longer reflects current fuel prices.
“If the Government is serious about relieving cost-of-living pressures in a targeted way, then it must follow through on today’s promise and make it a priority to compensate them for rising fuel bills. It’s the right thing to do,” Fitzsimmons said.
The union added that many of these workers were already undercompensated prior to the fuel price surge and continue to feel the impact of the government’s earlier decision to scrap a planned pay equity increase.
The PSA’s appeal comes as governments worldwide roll out measures to mitigate the impact of rising energy costs. In addition to promoting remote work, Vietnam and Thailand have encouraged public employees to adopt energy-saving practices, including limiting non-essential travel.
Meanwhile, Philippines too introduced a four-day work week, either through shorter workweek and hybrid work options, citing an urgent need to conserve energy.
As global fuel prices remain volatile, pressure is likely to grow on governments, including New Zealand’s, to adopt similar interventions to shield workers from escalating living costs.