New FIFO rosters kept the West’s mines operating during Covid

New fly in fly out rosters kept the West’s mines operating during COVID.

The health and productivity of the mining sector risked a period of uncertainty if decisive steps weren’t taken to protect the industry and the FIFO scheme that underpins it during Covid. Picture: SBS

Towards the end of last March, as businesses across the country closed their doors, Australia’s resource sector rushed to keep its mines open. The health and productivity of our biggest export sector, mining leaders insisted, risked a prolonged period of pain and uncertainty if decisive steps weren’t taken to protect the industry and the FIFO scheme that underpins it.

At the end of March, chief executive of the Western Australian Chamber of Mines and Energy (WACME), Paul Everingham, was not optimistic. He worried it would be difficult to mobilise a FIFO workforce in time. Fast-forward a year, though, and he’s impressed with how well industry and government banded together.

“Overall it’s been very successful,” says Everingham. “At the start it was all very frantic, we were in daily contact with the mining executives as well as state and federal politicians trying to figure out logistics and solutions to flight schedules. There was a lot of anxiety about what would happen logistically, but people wanted to do their bit and keep their mines open.”

In response to the border closures, government and mining companies encouraged interstate FIFO workers to bring their families and become temporary WA residents.

Chief executive of Fortescue Metals Group, Elizabeth Gaines, tells The Deal that while she was concerned about the initial impact of the pandemic, she was confident Fortescue was prepared for any scenario.

“We’d already been dealing with COVID in our Chinese operations as early as January, so we were very prepared for events (in Australia). We were able to arrange family accommodation in Perth and Port Hedland … We saw an amazing response from our people and from the entire industry. Some of the distancing and health measures we put in place have also led to better hygiene processes across sites which has also been a good long-term outcome.”

For almost four months, the company doubled its rosters — the usual two weeks on, one week off now becoming one month on, two weeks off — in a bid to limit the movement of people and retain its vital FIFO workforce in situ. Depending on the company, rosters could in some instances be extended up to 16 weeks at a time.

“Temporary roster changes certainly helped in the initial stages,” says Gaines, “but we wound those down as quickly as we could.”

In the end, more than half of all 5000 FIFO workers from the eastern states chose to move west for six months or more, often deciding to bring their families. Of the few who returned home at the conclusion of their roster “only a handful chose not to come back to WA”, according to WACME. Despite the successes in relocating workers interstate and extending FIFO rosters, industry executives acknowledge that longer stints away from family and home was far from ideal. By July, most companies had discontinued their extended roster schemes, despite the cost savings.

Like other companies, the goldmining and exploration business Gascoyne Resources doubled its rosters and assisted FIFO workers and some families in relocating west.

“We don’t have the resources of a Rio, BHP or Fortescue,” says chief executive Richard Hay. “Before the pandemic we were really struggling, but we’ve managed a strong turnaround. Of course, having longer rosters helped and it does mean you need fewer people.

“In a draconian business world, doubling people’s rosters probably would lead to greater profitability, but that would be taking advantage of our people and we would just never do that.”

In March, Gascoyne was deep in administration, beset by spending restrictions and dwindling resources. But strong results eventually saw the business recommence trading on the ASX at the beginning of last October. “It’s been our people who’ve worked hard in tough circumstances to help this turnaround,” says Hay.

Dr Laura Fruhen, of the University of Western Australia, says that while the pandemic saw a clear drop in mental health, initial surveys indicate that FIFO workers were broadly satisfied with “the clear communication and transparency they received from companies in offering support, while observing social distancing and extra testing for COVID.”

Asked about the extension of rosters during the pandemic, Fruhen says: “I hope, based on what we know about how they affect people, that in the future there will be a motivation from workers and companies to rely on services we know are better for people.”

But the scheme continues to be hailed as a success.

Following the end of the FIFO rostering scheme, industry productivity began to climb, returning to pre-pandemic levels by mid-December. Early research undertaken by WACME suggests that 2020 saw no decline in sector productivity, aside from a short period earlier in the year. Everingham says: “We’ve seen a very strong recovery over the course of 2020. The industry has responded well.”