> Google [...] would reduce the pay of those who choose to work remotely or move farther from the office. Avoiding the office saves employees money — in commuting costs, for example
I don't understand the reasoning behind this, and I've seen it being used again and again. Employees are compensated on the work they provide during work hours, and only rarely do companies provide compensation to specifically accommodate for commutes, usually done as an incentive for people with costly commutes.
The concern most companies have has to be more about the real estate play, and how the offices they have paid for or are renting won't be getting as much use. Other than that, in terms of energy usage, heating/cooling, etc., I would imagine the cost savings of having people work remotely are considerable.
If anything, as I see it, work from home employees should be compensated for the costs of working from home, which include higher utility expenses, or even office furniture to enable their work — some companies have paid stipends for home office setups, for example.
I think, long term, companies may have to rethink how they set up their offices so not as much cost is sunk in real estate, so much so that they risk penalizing employees who would be saving them money otherwise, if it weren't for the existing office-centric solution.