Fuel Cost Pressures: Practical Ways to Support Staff
Business Canterbury is acutely aware of the impact that rising fuel prices—linked to the Middle East crisis—are having on businesses and their employees, creating significant cost pressures. Below are some practical tips to assist staff in managing the impact of rising fuel prices.
- Encourage carpooling. Designate an employee to act as a transport coordinator. Provide a subsidy to staff who use their vehicles for carpooling purposes and allocate parking spaces on a preferential basis to those who carpool.
- Where staff have company vehicles, investigate the feasibility of picking up employees to and from work.
- Offer staff the option of cashing in outstanding annual leave or alternative days.
- Direct staff to take annual leave where leave balances have built up.
- Consider moving staff to four 10-hour days to reduce travel costs one day per week, versus a five-day, eight-hour Monday to Friday working week.
- Allow staff to work longer each day to build up a nine-day fortnight (e.g. work eight nine-hour days and one eight-hour day, equalling 80 hours per fortnight).
- Consolidate shifts for part-time staff so they are not travelling to work on as many days.
- Allow flexible start and finish times to maximise fuel efficiency and reduce peak-time travel and stop-start driving.
- Look at feasibility of providing loans to staff to purchase bicycles. Since March 2023, employer-provided e-bikes for commuting are exempt from Fringe Benefit Tax (FBT). Refer to the attached link below for more details.
- Promote the use and benefits of public transport.
- Consider salary sacrifice arrangements to provide transport benefits or a specific travel allowance.
- Provide tips on reducing private travel costs (e.g. maintaining correct tyre pressure).
- Consider targeted fuel allowances.
- Provide a one-off cost of living allowance in advance of, or as part of, the annual remuneration round. (Even if the overall percentage is unchanged, this can have a strong psychological impact by demonstrating employer care and awareness of current cost pressures.) Bring forward if possible.
- Offer working from home options where feasible.
WorkRide – NZ’s Ride to Work Benefit Program: 32–63% offset, visit www.workride.co.nz to learn more.
Any changes to employment terms and conditions should be temporary, recorded in writing, and time-limited (for example, one month). This allows for developments in the Middle East crisis and any diplomatic efforts to stabilise the region.