Communities battle FIFO for local workforce

OUT AND ABOUT: The Fly In Fly Out scheme of work has many detractors and just as many supporters.

Companies can’t be taken to task for using a system that works to keep their financial bottom line operating in their favour.

Workers can’t be answerable for opting to work within a system that allows them to earn big – working away from home – dollars, while not having to leave their urban-based residential address.

Towns that are in close proximity to mining operations also can’t be blamed for expressing concerns about the effect such a transient week-by-week population shift has on its services and livelihoods.

 

Of course, any mining industry associated debate wouldn’t be worth its salt unless some form of parliamentary inquiry was held to look into its machinations.

When the recent inquiry made its way to Perth junior sector lobby group the Association of Mining and Exploration Companies (AMEC) outlined what it felt about the argument.

“FIFO has provided a viable solution in attracting and retaining the right skill sets to work on mining and minerals exploration related projects in remote and regional communities throughout Australia,” AMEC national policy manager Graham Short said.

“AMEC and our members support FIFO as a legitimate workforce strategy which provides an adaptive management capacity to meet industry demand and the differing needs of the workforce”.

“Minerals exploration, mining companies, suppliers and contractors choose workforce strategies that suit their individual business circumstances, needs and financial requirements.

“A FIFO workforce for many companies may be the only viable option open to them, particularly with the current constrained workforce conditions.

“There are a number of factors which influence workforce strategies, such as the cyclical nature of the industry, mine location, mine life cycle, the skills required and the transient nature of the workforce.

“FIFO has not only been successful in meeting the immediate needs of employers for construction and production purposes but it also provides workers with a choice.”

Although the government appears to have reached the verdict that FIFO is the root of all evil falling upon regional centres it would be surprised to hear the people living in with the reality of the FIFO conundrum do understand why the industry operates that way.

“The consideration of Fly In Fly Out is something that we all have to grapple with within regional Western Australia,” Mayor of Port Hedland Kelly Howlett told The Roadhouse.

“Certainly in my time, particularly here in my time on Council, our thoughts and our views on Fly In Fly Out has certainly matured and I guess that’s something that has happened, even from 2008, when we did our last position statement and we are currently reviewing our position statement now.

“There is an appreciation and understanding of the real competitive nature of competing for high-expertise skilled trade, and the real competition, whether it be from Gladstone to Darwin to Western Australia.

“All the different resource projects that are happening at the moment means there is a really high competition to get the necessary skills and expertise to make that happen.”

As a big FIFO town due to the number of mining operations, including those of BHP Billiton, Fortescue Metals Group, Atlas Iron, and BC Iron that utilise its port facilities to ship their iron ore, Port Hedland is a fine example of just how competitive that employment market can be.

“All the roles that we are filling are for companies that are based in Port Hedland,” Pia Thornett safety manager of local recruitment agency Category 5 Labour Management told The Roadhouse.

“We have a lot more people looking for Fly In Fly Out work but as we don’t fill those type of positions, we can’t help those people.”

I may surprise some people but Port Hedland is something of a magnet for workers seeking better paid employment opportunities than what they may be able find at home.

However, as more people arrive in town and start work they soon realise the potential earnings they can be making are soon eaten up by the high rent market.

Being close to the action also enables them easier access to the mining companies.

The desired ‘industry experience’ or better still that acquaintance who works on a mine site who tells his boss, ‘I know a bloke looking for some work’, is much closer than when you are living and working thousands of kilometres away from the action.

It is for reasons such as this that many local businesses associated with the mining industry tend to see themselves as being no more than a revolving door as far as staff levels go.

Employees that do end up staying in town become a valuable commodity and can shop themselves around, which makes it more and more difficult for the smaller, local businesses to retain staff.

 “Occasionally they lose them to a Fly In Fly Out position, other times they may lose them to another company that is able to pay the employee a bit more money,” Thornett explained.

“Once people get their foot in the door – they do come here fully intending to become a Port Hedland local but they soon realise – after they have developed their skills and have gained the necessary experience – all of a sudden they want to start working on  a Fly In Fly Out basis.

“Local employers are constantly going through staff, who are always on the lookout for that bigger, better job.

“They become a training ground for some of the bigger businesses around, and that’s sad because they are forking out all this money to train new staff only to lose them.”

The question raised by FIFO is how to reach equilibrium between how a regional centre such as Port Hedland can successfully operate and evolve when placed in direct competition for a work force with the very industry that helped put it on the map when the first iron ore boom exploded in the early 1960s.

Kelly Howlett said she considers it to come down to the State of Western Australia and that it has an over-arching obligation to make sure there aren’t any gaps, that it needs to make sure there is the flow-on in terms of the health professionals, police, emergency services, and telecommunications.

“Even the state of Western Australia is now starting to catch up,” She said.

“Hopefully, now with the revision and the changes under the State Agreement Act, there will be a much greater collaborative effort between the state government, the actual mining proponents when they do projects and the involvement of the community and local government to make sure we are looking at the cumulative impact and filling any of those gaps.”