World of HR: More employers, governments look to conserve energy as oil crisis rolls on

The US-Israeli war against Iran has affected seemingly every part of the global economy. Governments and employers from Europe to Australia have taken steps in the past week to limit their and their workers’ energy consumption.

Where in the world? The Australian government halved its oil tax for three months in an effort to reduce the burden on residents, the Australian Broadcasting Corporation reported, while some employers have provided additional relief. Wesfarmers, which runs Kmart, Target, and Priceline in the country, has suspended nonessential business travel, and elder-care service Prestige InHome Care increased travel rebates for its caregivers.

More than half (57%) of Australians said they believe remote work is the best solution to the fuel crisis, the Financial Review reported.

The Financial Review quoted Julia Angrisano, secretary of the Finance Sector of Australia saying, “Cutting back unnecessary commuting is one of the simplest and most effective ways to reduce costs for workers right now.”

On Mar. 31, Dan Jørgensen, energy commissioner of the European Union, encouraged residents to “work from home where possible,” according to Newsweek. However, Simon Harris, finance minister of Ireland, told reporters in Tipperary, Ireland the country does not currently plan on recommending remote work or travel adjustments, despite the International Energy Agency’s contrary suggestion, the Journal reported.

“I think employers generally exercise a fair degree of common sense here,” he said, adding that he’s “satisfied” with current work from home structures. “Companies and the public services have to make sure that they can continue to run and continue to operate.”

In South Korea, tech giants Samsung and SK are limiting how often employees drive to work as the government considers nationwide restrictions on driving for the first time since the 1991 Gulf War, Reuters reported.

LG South Korea is encouraging workers to take advantage of the company’s employee shuttle buses, while other companies are trying to conserve energy by turning off lights during lunchtime or reducing elevator use, according to Bloomberg.

Satellite view. The average price of gas has surged more than a dollar in the last month to $4.00 a gallon, but the US isn’t yet experiencing an oil shortage. Still, some employers have stepped in to ease the pain workers are feeling at the pump, HR Brew reported previously.

For now, in-office attendance remains steady, but some experts believe employers will offer workers more grace when it comes to remote work if high gas prices persist, according to MarketWatch.

“It’s like bad weather,” Nick Bloom, an economist at Stanford University, told Marketwatch. “During big snowstorms, firms often let employees work from home for the week, and similarly they cut them some slack when gas prices hit $4, or in California $5 or even $6.”