Mining through the talent pool of potential fly-in fly-out (FIFO) workers.

• Author: Pryce, Josephine
• Position: Contributed Article - Report

Abstract

This article reports on findings from an exploratory study which examined the qualifications, skills, and experience of local job seekers In Tropical North Queensland to ascertain their potential as FIFO workers. An online survey was conducted, eliciting 213 responses from potential FIFO workers, identifying their interest in, capacity, and capability to undertake FIFO work. The majority of respondents indicated that not only were they interested in FIFO work, but that they constituted an untapped talent pool of potential FIFO workers with substantial experience and (or) limited qualifications. The results indicated that this supply of potential FIFO labour, with some upskilling, could go a long way In contributing to the growing demand for skilled labour In the resource sector. The interest of these potential workers has implications for the mining industry, government departments, employment agencies, communities, and labour markets.

1. Introduction

   With the burgeoning of the mining industry in Australia, there has been a growing focus on meeting the labour demands of this dynamic sector of the economy (for exam pie, the Minerals Council of Australia 2013, Tonts 2010). Some of the debates have centred on mobile workforces, with consideration given to the long-distance commuting (LDC) of workers (Dickie and Dwyer 2011, McKenzie 2011, Storey 2001). The Minerals Council of Australia (2013) indicated that 25 per cent of the mining workforce is long-distance commuters. They contend that mining companies prefer to hire local workers rather than long-distance commuters because of the associated costs with the latter. However, when mine sites are remotely located, the availability of suitable workers can be restrictive (Storey 2001). This is further compounded by the quest for a skilled and experienced workforce to meet the needs of the mining industry (Dickie and Dwyer 2011).

   The merit of programs linking workers with the resource sectors is evident in the literature. For example, the Minerals Council of Australia (2013) reported that FIFO has enabled workers from various parts of Australia, who previously lacked opportunities, to be part of the industry. They present the case of the Pathways to Pilbara Program, in which approximately 120 unemployed Indigenous workers from northern New South Wales were recruited for mines in the Pilbara region. Markham and White (2013) report on the opportunities and benefits provided by the mining industry in offering new employment for remote Indigenous people. They argue that the potential of the booming mining industry to act as a reservoir of opportunities for employment for people who would not normally be afforded those jobs is a key and favourable aspect of recruitment by the mining industry. In addition, the Minerals Council of Australia report depicts the value of the mining industry to labour markets, communities, and the nation. In line with this approach to identify potential FIFO workers, one of the projects initiated in the Cairns region is worthy of discussion and findings from that project are the subject of this article.

2. Defining FIFO

   In August 2011, the Honourable Simon Crean MP (Minister for Regional Australia, Regional Development, and Local Government) asked the House of Representatives Standing Committee on Regional Australia to investigate FIFO and 'drive-in drive-out (DIDO) workforce practices throughout Regional Australia'. In February 2013,the House of Representatives Standing Committee on Regional Australia (HRSCRA 2013) presented its report for the above inquiry. The report defined FIFO and DIDO as 'work which is undertaken by LDC on a regular basis for an extended period at such a distance from the employee's home that they are not able to return to their permanent residence at the end of a shift' (HRSCRA 2013, p. 4). Generally, FIFO work consists of systematic work patterns with set rostered days on and off, with FIFO workers transported to and from the worksites, and accommodated on worksites by the resource sector (HRSCRA 2013). The report recognised that FIFO approaches to work provides mines with geographically mobile workforces, and can address some of the challenges in supplying labour for the mining industry.

   The HRSCRA (2013) report recognises that in some industries (such as fruit, cotton, and sheep), Australia has traditionally utilised non-resident labour that has travelled for the season to the remote work location and returned home or to another work location at the end of the season. In more recent times, this seasonal workforce has extended to include long-distance commuters who 'travel long distances to work and then return to their permanent place of residence at regular intervals' (HRSCRA 2013, p. 12). Such LDC has been made possible because of improvements in transport and subsequently has contributed to the use of FIFO workers in the resource sector. It is noted that since the 1980s there has been a dramatic upsurge in the number of FIFO workers in the resource sector, with the Western Australian Local Government Association (WALGA) reporting a 400 percent increase in FIFO workers in the last two decades (HRSCRA 2013).

3. The FIFO Labour Market

   IBSA (2012) highlighted that the Deloitte Access Economics-Arup Investment Monitor for March 2011 identified approximately $118 billion in current mining projects, and $236 billion in future ones. Of interest was the emphasis by IBSA (2012, p. 8) on the 'insatiable demand for selected skilled labour ... [and] the difficulty in attracting workers to regional areas; generic, competency-based training not aligning with resource-sector demand; inability of Registered Training Organisations (RTOs) to respond to sharp increases in demand'. This is consistent with indications from Deloitte Access Economics (2011) who noted that there will be an increasing demand for workers in the resources sector, and that demand will exceed supply. Similarly, the HRSCRA (2013) report emphasises the labour shortages in the resource sector and acknowledges that FIFO workforce practices go a long way towards providing labour, but the market is becoming increasingly firmer. The report argues that the 'shortage of labour, particularly skilled and experienced labour, is a common justification for the use of FIFO workforce arrangements'(HRSCRA 2013, p. 26). However, recruitment of skilled workers continues to be an issue faced by the resource sector.

   In 2009, the Australian government launched the National Resources Sector Employment Taskforce (NRSET) in order to 'secure the skilled workforce required to build and operate major resources sector projects over the next five years'(NRSET 2010, p.11). NRSET confirmed the mobility of the workforce of the resources sector, and found that workers are willing to commute on a FIFO or DIDO basis to avail themselves of employment opportunities. They recognised that FIFO could work to alleviate unemployment and so assist regions experiencing above-average rates of unemployment.

4. The Situation in Cairns

   The report specifically recognised Cairns as one such region and recommended that 'the Australian government fund an industry-based, fly-in fly-out development coordinator in Cairns for two years from July 2010 as a pilot' (NRSET 2013, p. 6). NRSET explained that Cairns was recognised as an urban centre with significant potential for growth as a FIFO hub, and as a region for servicing the resource sector. The purpose of employing a FIFO development coordinator in Cairns was to connect skilled workers and unemployed job seekers with regional projects in the resources sector. It was reasoned that, if successful, this FIFO coordinator pilot project could be extended to other selected locations.

   In 2012, the Cairns FIFO Coordinator approached researchers at James Cook Universityto conduct research relating to the FIFO workforce in the region. One of the projects identified for exploration was the profiling of potential FIFO workers. Anecdotally, key informants in the Cairns community indicated that potential FIFO workers in the region were being overlooked. Principally, it was thought that these workers were individuals who had experience as quasi-skilled or skilled workers but who did not have the qualifications, skills, or experience needed to work in the mining industry. In addition, with unemployment in the Cairns region being high and the availability of work limited it was reasoned that, in identifying these individuals, it would be possible to connect them with job opportunities in the resource sector.

   A perusal of the literature showed that there was limited research examining: (i) the level of interest among workers in local regional communities in becoming FIFO workers; (ii) about establishing profiles of potential FIFO workers and their capacity to become FIFO workers; and, (iii) related to revealing barriers for entry of interested workers into FIFO communities. Insights into each of these aspects of FI FO work are useful in the development of regional hubs to service the mines with competent, capable, and experienced workers, in reducing unemployment levels in regional communities, and in reducing barriers to entry to FIFO work. In addition, much of the research around FIFO focused on areas outside Tropical North Queensland (McKenzie 2010, Sheppard 2013, Windle and Rolfe 2012). Hence, gaining data particular to the region which identified the specific needs of the region was critical if servicing the mines with a regional workforce was to be achieved.

   This...