Proposal to cut salaries of victorians working from home to help community divide 20230712 p5ythk.html – Breaking News & Latest Updates 2026
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Unions shut down radical proposal to cut salaries of employees who work from home

Serena Seyfort and Allanah Sciberras

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Unions have hit out at a proposal that suggested public servants who work from home should have their salaries cut.

Former Victorian Premier Jeff Kennett said people working from home should be paid less than other workers, such as emergency service workers and nurses, who have no choice but to physically attend a workplace each day.

The former Liberal politician said those working from home are saving money and hassle in having to travel to a workplace and therefore should receive less salary.

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Community Public Sector Union Julian Kennelly shut down the idea. Nine

Community Public Sector Union Julian Kennelly said the suggestion was ridiculous.

He said if anything, those working from home should be paid more.

"People who are working from home are saving money for their employer," Kennelly said.

"Maybe they are the ones who should be getting the support. Because they are wearing the additional costs such as home office and IT.

But Kennett believes there is a psychological "divide" emerging in society since the working-from-home trend began from COVID-19 lockdowns, saying he was thinking about the future.

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Jeff Kennett has proposed a new pay scheme for public sector workers. David Caird

"It creates division," he said.

"Those people who elect to work from home, save themselves a great deal of stress and save themselves financially. 

"Those who have to go to work, they have no alternative. It costs them, both financially and mentally.

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He clarified that the proposal was nothing to do with the amount of work produced by employees.

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People working in the office would be paid more than those at home under the new proposal. Nine

Kennett told the Herald Sun that the idea would help get more public sector workers back into the workplace.

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A public sector union spokesperson has said that 80 per cent of its staff are working in the field, and that it would be counterintuitive for them to have the salary benefits removed as productivity rates have gone up since flexible workplaces have been introduced.

The Andrews Government has also responded to Kennett's suggestion by saying it will not take advice from the former Liberal leader, but that the idea would be a bold push to get people back into the office.

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