Australian Developer Apologises for Calling Workers ‘Arrogant,’ ‘Less Productive’

Workers lay concrete at the construction of a new apartment block in Melbourne, Australia, on June 5, 2018. William West/AFP via Getty Images

Australian multimillionaire developer Tim Gurner has apologised for his comments on the post-pandemic workforce amid fiery responses from politicians and unions.

He was criticised for claiming workers are “arrogant” and less productive since the COVID and for suggesting more job losses are needed to “kill that attitude.”

On Sept. 14, the CEO and founder of Gurner Group expressed his deep regret for the remarks made earlier at a property event, admitting that they were “wrong” and “insensitive.”

“My comments were deeply insensitive to employees, tradies, and families across Australia who are affected by these cost-of-living pressures and job losses,” he said in a statement.

“I want to be clear: I do appreciate that when someone loses their job it has a profound impact on them and their families and I sincerely regret that my words did not convey empathy for those in that situation,” he added.

Speaking at Sept. 12 The Australian Financial Review Property Summit, Mr. Gurner identified declining productivity, bureaucratic planning systems, and inefficient taxes as major issues holding back the housing supply in the country.

He then suggested a higher unemployment rate could be a cure for a declining work ethic as people had “decided they didn’t want to work so much anymore through COVID” which had a “massive effect on productivity.”

“Unemployment has to jump 40 to 50 percent in my view,” Mr. Gurner said. “We need to see the pain in the economy.”

“We need to remind people that they work for the employer, not the other way around,” he added, pointing to the rebalance of the power dynamics in the employment.

Running a company that holds a portfolio reportedly worth more than $9.5 billion (US$6.09 billion), the young rich lister singled out tradies as one of the forces that “have definitely pulled back on productivity,” saying that “ they have been paid a lot to do not too much in the past few years.”

Out of Touch and Offensive: Politicians, Unions

Mr. Gurner’s remark on unemployment and productivity sparked strong criticism from politicians and unions, including U.S. Democrat Rep. Alexandria Ocasio-Cortez (D-N.Y.).

Ms. Ocasio-Cortez reposted the video on X with the caption: “Reminder that major CEOs have skyrocketed their own pay so much that the ratio of CEO-to-worker pay is now at some of the highest levels ever recorded.”

Liberal MP Keith Wolahan described the comments as “out of touch.”

“The loss of a job is not a number. It sees people on the streets and dependent upon food banks,” he told the Australian Financial Review. “Right now families are working multiple jobs just to stay afloat.”

Labor MP Julian Hill labelled Mr. Gurner as “self-interested” by “calling for higher employment and higher migration all at once.”

“He’s right about productivity and the need to speed up planning and building approvals, but his views on unemployment and industrial relations can go where the wind doesn’t blow and the sun doesn’t shine,” he said.

Australian Council of Trade Unions President Michele O'Neil condemned Mr. Gurner’s comments as “shocking and offensive” during an interview with the ABC’s RN Breakfast.

“This is an uber-rich guy who is saying the quiet part out loud … He was basically advocating that you should make working people suffer to bring them under control,” she said.

Concerns Over Worsening Work Ethic Are Echoed

Despite the “out of touch” tone, Mr. Gurner’s complaints about slacking off at work are echoed by some Australian corporate leaders and economists.

Gigi Foster, professor of economics at the University of New South Wales agrees that “some bad habits” are now afflicting the country’s post-pandemic workforce, which are “part of the longer-run costs of Australia’s catastrophic COVID policies ” that she has been warning about since March 2020.

She also agrees that the dynamic of the labor market could play a role in the quality of the workforce.

“It’s mechanically true that when there is a low unemployment rate, or what we call a ’tight' labour market, people who in other times might not be able to find work—such as those who have uncompetitive skill levels or poor attitudes—can end up getting jobs,” she told The Epoch Times in an email statement.

However, there are no magic bullets to increase productivity and work ethics, she warned.

Minerals Council of Australia chairman Andrew Michelmore points to the impact of the new norm of working from home on productivity in the workplace.

“Employees have got used to earning the same amount of money but not putting in the same hours, and not the same production,” Mr. Michelmore told the Australian Financial Review.

He warned that individuals and the whole country will ultimately pay the price.

“As I look at it, if you’re going to produce less, well I’m sorry, then you have to accept that you will ultimately have to get paid less,” Mr Michelmore told the Australian Financial Review.

“As a country, if you don’t produce as much with the same inputs – labor and capital and the like ... then you’ve got to accept you’re going to have a lower standard of living.”