FIFO as a solution to the looming
skills shortages in the Galilee Basin:
pluses and minuses
Galilee Basin Coal and Energy ...
Sustainable Minerals Institute -

2
About CSRM

3
Relevant University of Qld research projects
• Local government, mining companies, and resources development
in regional A...
E.g. Sustainable Minerals Institute LDC Survey

Research Team:
Associate Professor Philipp Kirsch1
Dr Jill Harris1
Ms Meng...
What is FIFO?

“Fly-in/•ly-out mining operations are those which involve
f
work in relatively remote locations where food ...
History
•
•

Began 1950s in the offshore oil & gas
sector, Gulf of Mexico
Since the 1980s has been increasingly
adopted by...
Why is it in the headlines? (a national obsession)
• Industry expansion
– Ever increasing numbers of FIFO/ LDC employees

...
Costs and benefits for resource companies
• Changing business case drivers
– Costs of staffing of remote operations are co...
Worker retention
• 44% were intending to change jobs in the
near future for:
–
–
–
–

Higher salaries
Greater flexibility ...
FIFO workers: the negatives
• Family
– Parenting responsibilities
– Relationship breakdown
– The  ‘home  and  away’  cycle...
Work-Life Balance

12
Emotional well being
• 40% lonely or socially isolated to some degree
• 14% lonely a large part or most of the time
• Stre...
Job satisfaction
• 66% of our sample were satisfied with:
– Balancing work and family
– Training and career progression

•...
FIFO workers: the positives
• Money
– High wages, accommodation
and food provided

• Lifestyle
– “We  want  the  resources...
Source Communities
• Where FIFO workers officially reside
– Enjoy the economic benefits of well paid residents
– Many rura...
Host communities
• Where FIFO employees work
–
–
–
–
–

Industry diversification
Indirect employment
Some economic benefit...
Costs and benefits for Governments
• Local government
– Frustration - bears the brunt of underresourcing in infrastructure...
National FIFO Enquiry Analysis - MISHC
Negative compared to
Positive issues
1200

1000

•

Method
– Sorted into stakeholde...
A snapshot of the distribution of health concerns
50
46

Business

Commmunity

Government

40

Health

Individual

Industr...
Camp life positives

21
The future of FIFO?
• Set to increase in the short term
– Roxby Downs, Galilee, WA
– In the longer term, automation

• FIF...
The future of Central West Queensland?

23
Projected workforce needs
Project
• Alpha Coal (38 km N-W of Alpha)
• Carmichael (160 km N-W of Clermont)
• China First (3...
The issues
• Costs and benefits for all stakeholders
• Problems  associated  with  FIFO  don’t  occur  in  isolation
–
–
–...
QUESTIONS AND DISCUSSION?
Thank you
http://www.csrm.uq.edu.au/publications/476-factors-linked-to-the-well-being-of-fly-in-...
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Jo-Anne Everingham, University of Queensland - Some pluses and minuses of FIFO as a solution to the looming skills shortages in the Galilee Basin?

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Jo-Anne Everingham, Senior Research Fellow, Centre for Social Responsibility in Mining,
Sustainable Minerals Institute, The University of Queensland delivered this presentation at the Galilee Basin Coal & Energy Conference.

This conference focuses on developing a new, world scale energy province in Central Queensland. It looks at the significant proposed investment in the Galilee area including coal mining, underground coal gasification, coal seam gas, geothermal, shale and much more, bringing together the wide variety of explorers, project developers, service providers and government representatives under the one roof. The event is run in conjunction with the Australian Journal of Mining (AJM).

For more information about the event, please visit the conference website: http://www.informa.com.au/galileebasin2013

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Jo-Anne Everingham, University of Queensland - Some pluses and minuses of FIFO as a solution to the looming skills shortages in the Galilee Basin?

  1. 1. FIFO as a solution to the looming skills shortages in the Galilee Basin: pluses and minuses Galilee Basin Coal and Energy Conference 26th November 2013, Brisbane C 1
  2. 2. Sustainable Minerals Institute - 2
  3. 3. About CSRM 3
  4. 4. Relevant University of Qld research projects • Local government, mining companies, and resources development in regional Australia: Meeting the governance challenge – 2 year study by CSRM & the School of Social Science – Funded by the ARC and seven Industry partners • House Standing Committee of Regional Australia Inquiry into the use of  ‘fly-in, fly-out’  (FIFO)  workforce  practices  in  regional  Australia – CSRM and MISHC submissions and review of submissions and report • Factors linked to the well-being of Fly-In-Fly-Out (FIFO) workers – 1 year study by CSRM and MISHC – Funded by UQ and SPOTLESS integrated services • Energy from the Foodbowl – 1 year study of resources development in agricultural regions – Funded and conducted by 4 SMI centres, and agriculture sections of UQ 4
  5. 5. E.g. Sustainable Minerals Institute LDC Survey Research Team: Associate Professor Philipp Kirsch1 Dr Jill Harris1 Ms Meng Shi1 Dr Susanne Arend2 Mary Anne Barclay2 Dr Jo-Anne Everingham2 Ms Julie Kim2 1Minerals Industry Safety and Health Centre for Social Responsibility in Mining 2 Centre 5
  6. 6. What is FIFO? “Fly-in/•ly-out mining operations are those which involve f work in relatively remote locations where food and lodging accommodation is provided for workers at the work site, but not for their families... What differentiates this form of organisation from other work involving periodic absences from home is the regular pattern of work on-site followed by a period off-site, and the nature  of  the  accommodation  arrangements.” Storey, 2001: 135 6
  7. 7. History • • Began 1950s in the offshore oil & gas sector, Gulf of Mexico Since the 1980s has been increasingly adopted by on-shore mining companies – Developed in tandem with the move to continuous 12 hour shifts and the increasing use of contractors • • Prevalent in Australia and Canada In 2010, FIFO workers comprised 50% of the WA mining workforce – Projected to increase to 62% by 2020 (AusIMM, 2011) – Resource operations workforce (contract and direct employees) of Bowen Basin is 53% (41% DIDO + 12% FIFO) nonresidential 7
  8. 8. Why is it in the headlines? (a national obsession) • Industry expansion – Ever increasing numbers of FIFO/ LDC employees • No longer restricted to remote communities – Impacts on existing rural communities • Significant socio-economic impacts – Mining companies – Their employees • including contractors – Communities • Host communities • Source communities – Government • All levels
  9. 9. Costs and benefits for resource companies • Changing business case drivers – Costs of staffing of remote operations are contained – The demise of the company town – Advent of  ‘fringe  benefits  tax’   – Flexibility • Negatives – Handovers – Retention • Workforce recruitment – Only way to attract workers to remote locations – skills shortages – Most effective way of managing a temporary workforce (e.g. construction) 9
  10. 10. Worker retention • 44% were intending to change jobs in the near future for: – – – – Higher salaries Greater flexibility in managing work and family Better roster cycle Career progression • Over two-thirds of this group indicated they would change in less than 12 months
  11. 11. FIFO workers: the negatives • Family – Parenting responsibilities – Relationship breakdown – The  ‘home  and  away’  cycle • Health and safety – – – – Camp life (food, exercise etc) Camp culture Fatigue Isolation & loneliness (can create or exacerbate mental health issues) 11
  12. 12. Work-Life Balance 12
  13. 13. Emotional well being • 40% lonely or socially isolated to some degree • 14% lonely a large part or most of the time • Stress levels: normal (86%), mild (9%), moderate (3%), high (2)% 13
  14. 14. Job satisfaction • 66% of our sample were satisfied with: – Balancing work and family – Training and career progression • And more than 85% were satisfied with: – Salaries – Commute mode – Their job in general 14
  15. 15. FIFO workers: the positives • Money – High wages, accommodation and food provided • Lifestyle – “We  want  the  resources  and   the riches, but not the lifestyle of  the  interior”  (Bernard Salt, 12 April, 2012) – FIFO attractive to singles, childless couples, parents of teen-aged children, emptynesters – Family opportunities and stable family base in a mobile industry • Job satisfaction – Opportunities for career advancement • The good news – Employees are making informed decisions 15
  16. 16. Source Communities • Where FIFO workers officially reside – Enjoy the economic benefits of well paid residents – Many rural communities with high unemployment rates or declining populations are keen to become FIFO hubs BUT – May  have  to  ‘pick  up  the  pieces’  in  cases  of  family  breakdown – FIFO employees are regularly absent and have less time available for community/ volunteering activities – Emerging  divisions  between  ‘haves’  and  ‘have-nots’ 16
  17. 17. Host communities • Where FIFO employees work – – – – – Industry diversification Indirect employment Some economic benefits Cushions boom-town/ ghost town cycle Eases accommodation pressures BUT – – – – ‘The  flyover  effect’ Service & infrastructure pressures Changes the character of existing communities Distorts population numbers and profile
  18. 18. Costs and benefits for Governments • Local government – Frustration - bears the brunt of underresourcing in infrastructure and services – Lack of voice in decisions • State government – – – – WA  ‘Royalties  for  Regions’ NSW proposed Royalties for Regions scheme SA Olympic Dam expansion QLD Caval Ridge – Coordinator  General’s  conditions,  SIMPs.  Now   Royalties for Regions and outcomes based undertakings • Federal – Parliamentary inquiry 18
  19. 19. National FIFO Enquiry Analysis - MISHC Negative compared to Positive issues 1200 1000 • Method – Sorted into stakeholder type – Extracted content – Grouped into themes • • • • • Health Water Environment Community Infrastructure Amount of issues 800 600 Negative, 940 400 200 Positive, 154 0 19
  20. 20. A snapshot of the distribution of health concerns 50 46 Business Commmunity Government 40 Health Individual Industry 35 Mining Company Mining Employees Research Institute 45 45 30 24 25 23 20 18 16 15 14 15 10 10 14 14 11 10 10 7 7 5 5 3 9 8 3 3 2 1 6 6 5 4 2 3 3 1 1 1 1 6 4 2 2 2 3 1 4 1 2 2 3 3 1 1 1 1 0 Community Stress Family Stress Personal Safety Worker Wellbeing Mental Health Health Industry Road Safety 20
  21. 21. Camp life positives 21
  22. 22. The future of FIFO? • Set to increase in the short term – Roxby Downs, Galilee, WA – In the longer term, automation • FIFO likely to be the norm for ‘brownfields’  &  exploration – Cost effective for large operations – Worker expectations • So how can a region get maximum benefit? – provision of services and infrastructure for companies and FIFO/DIDO employees – strategies to optimise FIFO/DIDO experience for employees and their families, communities and industry 22
  23. 23. The future of Central West Queensland? 23
  24. 24. Projected workforce needs Project • Alpha Coal (38 km N-W of Alpha) • Carmichael (160 km N-W of Clermont) • China First (35 km N-W of Alpha) • • • • • • • Workforce 1970 (Mine, rail & port) (Hancock) 3000 (Adani) 2460 (Waratah) China Stone (160 km N-W of Clermont) >2500 Estimate Clermont (150 km NE of Alpha in IRC) 825 (Glencore /Rio Tinto) Kevin's Corner (56 km N of Alpha) 1600 (Hancock) South Galilee (16km S-W of Alpha) 1290 (AMCI & Bandanna) Rodney Creek (60 km N-W Barcaldine) ?? (CSG) (AGL & Galilee Energy) Kyneton1 and Blendon1 (E of Barcaldine) ? (CSG) (Geo Resolve) Mycross (65km N of Barcaldine) ?? (CSG) (Eureka)
  25. 25. The issues • Costs and benefits for all stakeholders • Problems  associated  with  FIFO  don’t  occur  in  isolation – – – – Supply of skilled workers Capacity constraints in mining towns (accommodation crisis, etc) Gender imbalance Remoteness • Factors that can make a difference to the impacts – ‘Swing’  or  roster  patterns   – Style  of  ‘worker  accommodation  village’  (WAV)  – since they differ in size, location, duration, amenity, and links to local communities • Privacy and personal space • Reliable communication • Peace, quiet and comfort • What sort of region do we want the Central West to be? 25
  26. 26. QUESTIONS AND DISCUSSION? Thank you http://www.csrm.uq.edu.au/publications/476-factors-linked-to-the-well-being-of-fly-in-fly-out-fifo-workers 26

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