1 00:00:05,880 --> 00:00:08,239 Speaker 1: Welcome to Fearing Greed Q and A, where we ask 2 00:00:08,320 --> 00:00:12,039 Speaker 1: and answer questions about business, investing, economics, politics and more. 3 00:00:12,080 --> 00:00:13,360 Speaker 2: I'm Sean Eelmorant today. 4 00:00:13,840 --> 00:00:16,919 Speaker 1: How does business feel about the Victorian government's plan to 5 00:00:17,040 --> 00:00:19,880 Speaker 1: legislate the right to work from home? Over the weekend, 6 00:00:19,880 --> 00:00:24,120 Speaker 1: Premier to Center Allen announced plans to introduce legislation guaranteeing 7 00:00:24,400 --> 00:00:26,040 Speaker 1: the right to work from home two days a week 8 00:00:26,040 --> 00:00:29,840 Speaker 1: from employees across both the public and private sector. Unions 9 00:00:29,960 --> 00:00:32,920 Speaker 1: like it, Business not so much. Adam Schwab is he 10 00:00:33,000 --> 00:00:36,160 Speaker 1: co founder and CEO of Luxury Escapes. He's a vocal 11 00:00:36,200 --> 00:00:38,760 Speaker 1: opponent of the plan. Adam, Welcome back to Fearing Greed 12 00:00:38,840 --> 00:00:39,199 Speaker 1: Q and A. 13 00:00:39,600 --> 00:00:41,040 Speaker 3: Thanks Jano, It's great to be here. 14 00:00:41,800 --> 00:00:43,080 Speaker 2: What's wrong with the proposal? 15 00:00:43,760 --> 00:00:46,920 Speaker 3: Well, I actually don't know how serious this proposal really is. 16 00:00:47,880 --> 00:00:51,920 Speaker 3: There's obviously constitutional issues. States can't pass employment legislation. This 17 00:00:52,040 --> 00:00:55,040 Speaker 3: is pretty clearly an employment legislation that conflicts with Veger. Also, 18 00:00:55,280 --> 00:00:58,120 Speaker 3: I think she's just into Alan Victoria's premiers sort of 19 00:00:58,200 --> 00:01:00,640 Speaker 3: mootor divers as an h under the compacial health and 20 00:01:00,640 --> 00:01:04,280 Speaker 3: safety or some sort of strange laws, but realistically so 21 00:01:04,319 --> 00:01:06,559 Speaker 3: echo opportunity laws. I should say, but I think realistically 22 00:01:06,959 --> 00:01:09,199 Speaker 3: she knows, Labor knows this is just a samd bite 23 00:01:09,200 --> 00:01:10,920 Speaker 3: and a way to We saw what happened to Peter 24 00:01:11,000 --> 00:01:13,440 Speaker 3: done and when he ham fistially suggested everybody has to 25 00:01:13,440 --> 00:01:15,120 Speaker 3: work from the office in the public service, and he 26 00:01:15,200 --> 00:01:16,920 Speaker 3: got that was one of the many reasons he got 27 00:01:16,920 --> 00:01:19,080 Speaker 3: he lost. I certainly don't think that was the only reason. 28 00:01:19,120 --> 00:01:22,639 Speaker 3: I think he sold it horrendously, But ultimately I'm actually 29 00:01:22,640 --> 00:01:26,119 Speaker 3: not sure how serious this is. But let's play pretend 30 00:01:26,160 --> 00:01:28,640 Speaker 3: to potentially what is being serious and that they can 31 00:01:28,680 --> 00:01:30,399 Speaker 3: get it through, which I don't think they can. This 32 00:01:30,560 --> 00:01:33,240 Speaker 3: is like as dumb an idea as I ever heard. 33 00:01:33,080 --> 00:01:33,520 Speaker 2: In my life. 34 00:01:33,520 --> 00:01:36,440 Speaker 3: And I'm watch forty five now. I've maken pretty dumb things, 35 00:01:36,520 --> 00:01:40,119 Speaker 3: but this is not as sean. I've been very vocal 36 00:01:40,160 --> 00:01:43,280 Speaker 3: on what I want from our business and our employees, 37 00:01:43,280 --> 00:01:45,600 Speaker 3: and we're a business that we work from the office 38 00:01:45,760 --> 00:01:47,119 Speaker 3: by default five days a week. 39 00:01:47,200 --> 00:01:48,680 Speaker 2: But there's a big asterisk there that. 40 00:01:48,800 --> 00:01:50,320 Speaker 3: There are lots of people in our team who aren't 41 00:01:50,320 --> 00:01:51,960 Speaker 3: working from the office five days a week because they've 42 00:01:51,960 --> 00:01:53,840 Speaker 3: got a genuine reason not too. They could be parents 43 00:01:53,840 --> 00:01:55,680 Speaker 3: with kids, which is the most common reason, could be 44 00:01:56,040 --> 00:01:59,200 Speaker 3: looking after parents, so caring it could be disability. There's 45 00:01:59,200 --> 00:02:01,960 Speaker 3: a lot of reasons why peop need flexibility and work 46 00:02:02,000 --> 00:02:05,040 Speaker 3: from home. We as a five day work, five day 47 00:02:05,040 --> 00:02:06,800 Speaker 3: week office is very much in favor of that, but 48 00:02:06,840 --> 00:02:09,160 Speaker 3: there obviously are lots and lots of reasons why you can't. 49 00:02:09,600 --> 00:02:11,560 Speaker 3: But to think that a government can legislate for someone 50 00:02:11,639 --> 00:02:14,160 Speaker 3: this is as batshit crazy idea as I've ever heard 51 00:02:14,200 --> 00:02:14,880 Speaker 3: in my lifetime. 52 00:02:15,680 --> 00:02:18,200 Speaker 1: Who loses out most? Is it the business or is 53 00:02:18,240 --> 00:02:21,320 Speaker 1: it actually the employees who lose out most if they 54 00:02:21,400 --> 00:02:21,960 Speaker 1: don't come in. 55 00:02:22,320 --> 00:02:24,880 Speaker 3: Well, absolutely, the employees are the biggest losers here, and 56 00:02:24,919 --> 00:02:26,639 Speaker 3: for a number of reasons. I've talked about this a lot, 57 00:02:26,680 --> 00:02:30,440 Speaker 3: so I'm obviously we run the business, but ultimately you 58 00:02:30,520 --> 00:02:32,360 Speaker 3: run the business because you want to work with an 59 00:02:32,360 --> 00:02:35,000 Speaker 3: incredible team and create incredible value for our customers and 60 00:02:35,000 --> 00:02:37,200 Speaker 3: for our team, and you just can't do it, Especially 61 00:02:37,200 --> 00:02:39,360 Speaker 3: when I say employees, young employees are the ones that 62 00:02:39,440 --> 00:02:41,600 Speaker 3: really suffer here. If you're a forty five fifty year 63 00:02:41,639 --> 00:02:44,120 Speaker 3: old person who's reached the top of that field, you're 64 00:02:44,120 --> 00:02:46,640 Speaker 3: an ic or we'll call it, we'll call an independent contractor. 65 00:02:46,680 --> 00:02:50,160 Speaker 3: You're a brilliant developer, you're a brilliant specialist in your area. 66 00:02:50,240 --> 00:02:52,120 Speaker 3: You can easily work from home and you actually you 67 00:02:52,120 --> 00:02:55,200 Speaker 3: will be as useful to the business as whether you're 68 00:02:55,200 --> 00:02:58,119 Speaker 3: come into the office in most cases for you personally, 69 00:02:58,600 --> 00:03:01,359 Speaker 3: people who suffer are the twenty two twenty five year 70 00:03:01,360 --> 00:03:03,240 Speaker 3: olds who aren't getting taught like we all did twenty 71 00:03:03,320 --> 00:03:05,720 Speaker 3: years ago by people who have been there before. So 72 00:03:05,760 --> 00:03:09,520 Speaker 3: it's absolutely the younger people who completely get hit. And actually, 73 00:03:09,600 --> 00:03:11,239 Speaker 3: nothing annoys me more is when you've got a team 74 00:03:11,280 --> 00:03:12,880 Speaker 3: of twenty five year olds wore desperate to come into 75 00:03:12,919 --> 00:03:14,880 Speaker 3: the office for the mentoring and for the learning, and 76 00:03:14,919 --> 00:03:16,840 Speaker 3: the selfish forty five year old manager can't be stuff 77 00:03:16,840 --> 00:03:19,240 Speaker 3: coming in. That's that's the worst situation. So it's it's 78 00:03:19,280 --> 00:03:23,920 Speaker 3: an absolute Our system of government is hugely in favor 79 00:03:23,960 --> 00:03:26,679 Speaker 3: of older people. And this is I'm not blaming older 80 00:03:26,680 --> 00:03:28,840 Speaker 3: people for this, but look at every part of our 81 00:03:28,880 --> 00:03:31,919 Speaker 3: tax legislation makes the rich get richer who are neverly older, 82 00:03:31,919 --> 00:03:34,320 Speaker 3: and the poor stay poor, which is everly younger. This 83 00:03:34,440 --> 00:03:36,720 Speaker 3: is just another nail in the coffin of younger people 84 00:03:36,760 --> 00:03:38,200 Speaker 3: who have been now being for Not only are we 85 00:03:38,960 --> 00:03:41,240 Speaker 3: not letting them buy into the into the housing market. 86 00:03:41,280 --> 00:03:44,640 Speaker 3: Because of ridiculous taxes like principal home residence exemption, we're 87 00:03:44,680 --> 00:03:46,480 Speaker 3: now making them work from home when they might want 88 00:03:46,480 --> 00:03:49,440 Speaker 3: to come into an offer. It's just like lunacy, and 89 00:03:49,880 --> 00:03:52,160 Speaker 3: it does it certainly doesn't help the employee and ultimately, 90 00:03:52,160 --> 00:03:55,800 Speaker 3: as someone who is a business, who are people working 91 00:03:55,800 --> 00:03:58,120 Speaker 3: together that creating lots of value. If my competitors want 92 00:03:58,120 --> 00:04:00,840 Speaker 3: to work from home five days a week, love that 93 00:04:00,960 --> 00:04:02,680 Speaker 3: like it means we're gonna have an advantage over them. 94 00:04:02,680 --> 00:04:04,480 Speaker 3: So we have a competitive one of our competitors who 95 00:04:04,800 --> 00:04:07,080 Speaker 3: is teetering drawds bankruptcy, but they get all these awards 96 00:04:07,120 --> 00:04:09,360 Speaker 3: for working from home. Well, that's that's totally fine with us. 97 00:04:09,840 --> 00:04:11,840 Speaker 3: What you don't want is people being forced to work 98 00:04:11,880 --> 00:04:15,040 Speaker 3: from home. Let businesses decide if somebody wants to. When 99 00:04:15,080 --> 00:04:16,840 Speaker 3: somebody comes to us for a job, we tell we're 100 00:04:16,839 --> 00:04:19,200 Speaker 3: really upfront. We say we are a five day week 101 00:04:19,400 --> 00:04:21,960 Speaker 3: office culture. If that doesn't suit you, if you live 102 00:04:22,000 --> 00:04:24,920 Speaker 3: four hours away, if you need lots of flexibility that 103 00:04:24,960 --> 00:04:27,400 Speaker 3: even we can't provide, we think you's both get a 104 00:04:27,440 --> 00:04:29,839 Speaker 3: job elsewhere. We're very honest up front. But there's lots 105 00:04:29,839 --> 00:04:31,960 Speaker 3: of lots of people who want that there's lots of 106 00:04:31,960 --> 00:04:33,320 Speaker 3: people who want to work in the office. Let's just 107 00:04:33,440 --> 00:04:35,440 Speaker 3: let people decide what they want to do. Let businesses 108 00:04:35,440 --> 00:04:36,360 Speaker 3: decide what they want to do. 109 00:04:36,760 --> 00:04:38,760 Speaker 1: Okay, I mean, I don't mean to flog a dead 110 00:04:38,800 --> 00:04:40,520 Speaker 1: horse here a little bit, but they're just sitting around 111 00:04:40,640 --> 00:04:44,240 Speaker 1: talking about, you know, saving households money, saving time, commuting 112 00:04:45,000 --> 00:04:48,880 Speaker 1: easier for parents, caring with kids. I think what you're saying, though, Adam, 113 00:04:49,000 --> 00:04:50,479 Speaker 1: is that there's there is a middle grad. I mean, 114 00:04:50,560 --> 00:04:53,560 Speaker 1: you can do all that sort of stuff without legislating it, 115 00:04:54,880 --> 00:04:55,680 Speaker 1: and we do now. 116 00:04:55,839 --> 00:04:58,279 Speaker 3: So we're a five day week office culture. Yeah, we 117 00:04:58,320 --> 00:05:00,320 Speaker 3: have lots of parents with kids who either don't do 118 00:05:00,360 --> 00:05:01,840 Speaker 3: the five days a week while they have Also, you 119 00:05:01,880 --> 00:05:03,560 Speaker 3: don't have kids your whole life. You have kids. I've 120 00:05:03,600 --> 00:05:05,440 Speaker 3: got young kids, but eventually your young kids become older 121 00:05:05,520 --> 00:05:07,640 Speaker 3: kids and then become adults. So like, there is a 122 00:05:07,640 --> 00:05:09,799 Speaker 3: point where you aren't caring for them anymore. So certainly 123 00:05:09,800 --> 00:05:11,480 Speaker 3: when you're in there, my kids are eight and ten, 124 00:05:11,560 --> 00:05:13,159 Speaker 3: that's right in the thick of it, So you've got 125 00:05:13,200 --> 00:05:15,800 Speaker 3: bigger commitments than when the kids are seventeen and twenty one. 126 00:05:16,000 --> 00:05:18,640 Speaker 3: So like the notion that she's just picking the thin 127 00:05:18,760 --> 00:05:20,640 Speaker 3: edge of the wedge and obviously pushing a barrel for 128 00:05:20,960 --> 00:05:24,360 Speaker 3: cheap votes, but also it's a huge the people who 129 00:05:24,400 --> 00:05:25,840 Speaker 3: get hit and the people who always get hit, the 130 00:05:25,920 --> 00:05:27,719 Speaker 3: younger people who don't realize what they're losing. 131 00:05:28,040 --> 00:05:31,080 Speaker 2: Okay, before you go luxury escapes, how is it's? What's 132 00:05:31,120 --> 00:05:32,320 Speaker 2: the industry like at the moment? 133 00:05:32,400 --> 00:05:35,120 Speaker 1: Is it being rattled by all these tariffs and geopolitical 134 00:05:35,120 --> 00:05:37,000 Speaker 1: issues or is everyone just flying to Europe. 135 00:05:37,120 --> 00:05:40,040 Speaker 3: We're pretty lucky. I think Europe and the US, especially 136 00:05:40,080 --> 00:05:42,160 Speaker 3: the US feel a bit more challenged. But also our 137 00:05:42,200 --> 00:05:44,640 Speaker 3: business is much more of a short haul business. So yes, 138 00:05:44,680 --> 00:05:47,160 Speaker 3: we do tell Us and Europe, no doubt. But we're 139 00:05:47,200 --> 00:05:52,160 Speaker 3: our specialty Bali, Fiji, Vietnam, Malaysia, Thailand, Queensland. We've had 140 00:05:52,320 --> 00:05:55,480 Speaker 3: a record year out sort of significantly profits up, so 141 00:05:55,600 --> 00:05:57,440 Speaker 3: triple digits. So yeah, we're we're been able to do 142 00:05:57,440 --> 00:05:59,800 Speaker 3: all right. That's not to say that we're approxy for 143 00:05:59,839 --> 00:06:03,000 Speaker 3: the entire sector, because we are. We provide the best 144 00:06:03,080 --> 00:06:05,240 Speaker 3: sort of value on earth, so when the times are 145 00:06:05,240 --> 00:06:07,240 Speaker 3: a bit tougher, people tend to come to us as well, 146 00:06:07,279 --> 00:06:08,960 Speaker 3: because you can go to Bali for a couple of 147 00:06:08,960 --> 00:06:10,760 Speaker 3: grand and have an incredible trip where maybe you would 148 00:06:10,760 --> 00:06:12,919 Speaker 3: have went twenty grand in Europe. So we are a 149 00:06:12,960 --> 00:06:15,760 Speaker 3: bit of a defensive cyclical business, if that makes sense. 150 00:06:15,800 --> 00:06:18,800 Speaker 3: So we've been able to get through. Okay, we've seen 151 00:06:18,800 --> 00:06:21,880 Speaker 3: flights and other businesses have profit warnings to the last 152 00:06:21,880 --> 00:06:24,360 Speaker 3: at a couple of weeks. They're obviously an incredible business. I'm 153 00:06:24,360 --> 00:06:26,719 Speaker 3: sure they bounced back, but it is a slightly tougher 154 00:06:26,760 --> 00:06:29,240 Speaker 3: time for those travel business exposed to the so longer 155 00:06:29,279 --> 00:06:29,880 Speaker 3: haul stuff. 156 00:06:30,120 --> 00:06:31,640 Speaker 2: Adam, thanks for talking to Fear and Greed. 157 00:06:31,800 --> 00:06:32,320 Speaker 3: Thanks Sean. 158 00:06:32,760 --> 00:06:35,680 Speaker 1: That is Adam Schraub, co founder and CEO of Luxury Escapes. 159 00:06:35,720 --> 00:06:37,880 Speaker 1: Remember if you've got something you'd like to know, then 160 00:06:37,920 --> 00:06:40,880 Speaker 1: send through your question on LinkedIn, Instagram, Facebook, at Fearinggreed 161 00:06:40,880 --> 00:06:44,000 Speaker 1: dot com dot au. I'm Shanaeoma and this is Fear 162 00:06:44,000 --> 00:06:45,200 Speaker 1: and Greed pure name.