The FIFO experience: a Gladstone case study.

• Author: Cameron, Roslyn
• Position: Contributed Article - Fly-in fly-out - Report

Abstract

The aim of this article is to explore the historic and contemporary use of nonresident workers (NRWs) in the Gladstone region, how this has contributed to the region's development, and the economic and social impacts of the use of Fly-in Fly-out (FIFO) employment practices. Gladstone, in Central Queensland, is at the front and centre of Australia's evolving economic growth with some $45 billion of investment being delivered in the region. Recently, the construction of three coal seam gas and liquefed natural gas (CSG and LNG) projects on Curtis Island in Gladstone harbour has placed enormous pressure on the region in terms of unprecedented labour and housing demands. It has seen the extensive use of FIFO and Drive-in Drive-out (DIDO) workers. An exploratory qualitative approach framed by key concepts in the literature on resource dependence and socio-economic well-being and, in particular, the fy-over effects of utilising large-scale FIFO labour practices is used in this study. A case study research design has been utilised involving archival and documentary analysis, and a series of qualitative semi-structured interviews with community stakeholders. Recent research into the socio-economic impacts on regional resource-dependent regions across Australia points to a shift away from the 'resource curse' hypothesis (Lawrie et al. 2011, Tonts et al. 2012). We argue that the Gladstone story is unique and is differentiated from the atypical story of the company-built inland mining town, due to a number of contextual variables. Key issues from multiple perspectives are identified and recommendations for future research are made.

1. Introduction

   Australia has been building up to the biggest mining and energy boom in its history, however with the majority of Australia's population living in and around capital cities, few people actually live within daily commuting distance of mine sites. Land and sea-based mining basins are usually in regional and remote areas and are more often than not located large distances from capital cities or large population bases. This creates staffing issues for resource companies, due to the lack of a local population available to work at construction, mine, and plant sites. Therefore, employees living in major cities or capital cities are used to fill the shortfall. These workers commute on a regular basis, for an extended period of time, and are unable to return to their permanent place of residence at the end of a shift. The terminology used to describe workers travelling to a site specifically for work has changed over time. Currently, the term NRW (Carrington et al. 2011) is used to encompass the following terms: FIFO; long-distance commuters (LDC); DIDO; bus-in, bus-out (BIBO); and ship-in, ship-out (SISO) workers (Moranbah Medical 2011, Carrington et al. 2011, Gillies et al. 1991, Houghton 1993, HORSC 2013).

   As noted by the Australian Parliamentary Inquiry into FIFO and DIDO workers, there is very little research on this phenomenon, and information seems to be more anecdotal than evidence-based. Hence, there are several recommendations from the inquiry calling for research to be funded in the following areas: assistance to the Australian Bureau of Statistics to ensure data collections on FIFO and DIDO workers; research to examine the effect on children and family relationships of FIFO work practices; the economic and social impact of establishing FIFO source communities, and the impact of NRWs in regional towns on the provision of medical services. Several small-scale studies have been undertaken, the most notable being by Carrington and Pereira (2011), Clifford (2009), Haslam McKenzie (2011), Hoath and Haslam McKenzie (2013), Storey (2010), Torkington et al. (2011), and Lifeline (2013). The Kinetic Group (2012) and Energy Skills Queensland (2013) have provided substantial data on the numbers of workers in the Queensland mining industry and the distances that they are from mine sites. In addition, the Queensland Treasury and Trade Office has conducted three studies projecting NRW populations in three Queensland areas: Bowen and Galilee Basins, Surat Basin, and Gladstone (Government Statistician 2013a; 2013b; 2013c).

   There is a small but growing body of literature and research which examines the economic and social impacts of mining on resource-dependent towns and resource-rich regions. Case studies focused on the social and economic impacts of mining have been undertaken by Marinova et al. (2010) in relation to the township of Leonora in Western Australia. Petkova et al. (2009) conducted case studies in Queensland's Bowen Basin, and Lawrie et al. (2011) focused on three boomtowns in Western Australia (Kalgoorlie-Boulder, Port Headland, and Karratha-Dampier). More regionally based studies have been undertaken by Rolfe and Kinnear (2013) in relation to Central Queensland and by Rolfe et al. (2007) for the Bowen Basin region in Queensland. Peck (2013) studied the WA region of the Pilbara and Tonts et al. (2012) undertook a comparative analysis of 33 small mining towns across Western Australia. These studies are dominated by the fields of economics, geography, and rural sociology (Lawrie et al. 2011).

   There are complex challenges when aligning a FIFO workforce and a residential community. Studies in the Bowen Basin (Petkova et al. 2009, Rolfe 2011) indicate that issues arise concerning community image, impacts on families and workers, loss of engagement in the local community, lack of economic benefits due to FIFO workers spending the majority of their income outside the region, the perception of higher wages for FIFO workers, increased social issues related to alcohol, crime, and violence as well as community expectation that companies employing FIFO workers will contribute both economically and socially to the local communities.

   The loss of benefits to local communities which have substantial FIFO workforces has been termed the 'fly-over' effects of FIFO (Storey 2001). Terms used to describe the social and economic impacts of large mining operations on towns and regions include the 'resource curse' and the 'paradox of plenty' (Hajkowicz et al. 2011, Haslam McKenzie 2013). The 'resource curse hypothesis says that citizens of countries with natural resource abundance tend, ironically, to have lower rates of income growth and social well-being' (Hajkowicz et al. 2011, p. 31). Lawrie et al. (2011, p. 160) make several important points in relation to the uniqueness of each town or region with respect to the economic and social impacts from mining and resource projects, concluding that 'the experience of resource towns varies considerably according to their commodity base, location and socio-demographic structure'.

   This article briefly discusses the key findings from the Parliamentary Inquiry into FIFO and DIDO workers and associated research into the impacts of FIFO and DIDO practices on host communities. The case-study methodology employed for this study is outlined, followed by the findings and discussion. The article concludes with recommendations for future research.

2. Parliamentary Inquiry into FIFO and DIDO Practices

   The Parliamentary Inquiry on the use of FIFO and DIDO practices in Australia received 232 submissions. The House of Representatives Standing Committee on Regional Australia (HORSC 201B) made 21 recommendations as a result of the inquiry. These included recommendations for future research into the regional economic impacts of FIFO practices in terms of services and, in particular, health and medical services and affordable housing. Key issues identified by the inquiry included the lack of housing resulting in resource towns becoming unattractive to families, and thus the utilisation of FIFO work. This lack of housing also increases house prices and is the result of a lack of infrastructure planning by local governments. The report also highlighted some of the effects of isolation in FIFO camps for FIFO workers including alcoholism and violence. Some independent research has looked specifically at these issues (Clifford 2009,Torkington et al. 2011, Lifeline 2013).

   The lack of investment in the host community by resource companies remains an issue at most FIFO work sites. Councils throughout Australia have been negatively affected, as they have had to bear the burden of the increased population without any commensurate compensation (HORSC 2013). In addition, planning and forecasting for an influx of FIFO workers is an area that has received scant attention and direct cost-benefit economic analysis of FIFO workers is lacking. Direct spending at the workplace site by FIFO workers is a contentious issue, as studies have reported that money is repatriated to where a FI FO worker's family resides for them to spend, thereby providing very little direct financial benefit to the work-site community (Rolfe 2011). In addition, supplies for the camp sites are often purchased from capital cities and freighted to the worksite at a cheaper cost than local suppliers can match for the same goods.

   The issues surrounding the use of FIFO work practices are complex. The primary focus of this case study is to explore the historic and contemporary use of NRWs workers in the Gladstone region, how this has contributed to regional development, and the social and economic impacts this has had on the Gladstone community. Figure 1 indicates the Gladstone region in Queensland.

   As a consequence of the literature and research reviewed, the following research questions for this study are posited:

   RO1: To what extent have current FIFO employment practices affected the Gladstone regional economy?

   R02: What are the social impacts of current FIFO employment practices on the Gladstone community?

   R03: What strategies might be employed to minimise the negative impacts of the use of FIFO employment on regional communities?

3. Methodology

   The research design employed for the study is a...