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FIFO productivity claims challenged

BHP Billiton's claims of productivity advantages at its two fly-in, fly-out based coal mines in Q...

Blair Price
FIFO productivity claims challenged

As part of its submission into the Queensland government’s inquiry into FIFO practices, BHP cited improved performance measures at BHP Mitsubishi Alliance’s Daunia and Caval Ridge mines – the only coal mines in the state which 100% use a FIFO workforce.

“Along with positive diversity outcomes, BHP Billiton’s two FIFO mines in Queensland are 26% more productive than residential sites,” the mining house said.

“Average unplanned absence rates at residential mines is nearly 4%, while this reduces to about 1.5% at FIFO mines.”

BHP said retention/turnover rates at its residential mines averaged about 1.2% compared to about

0.8% at FIFO mines.

“Employee disputes measured per person is about 47 times less at our FIFO mines,” BHP said.

The company said revealed it had received questions over why it did not permit roles at the FIFO mines to be filled by locals who could have joined the inbound FIFO crew at the airport or village for the duration of their time on shift.

“We do not support this because the gains outlined above have been achieved through a very specific model,” BHP said.

“The interruption of this model, even if undertaken incrementally, will erode these gains over time. This is the same reason we do not permit new or existing employees at residential mines to FIFO.”

These claims were challenged by the Queensland branch of the Construction Forestry Mining and Energy Union.

“Caval Ridge and Daunia are new mines and all new mines are designed to be more efficient," CFMEU mining and energy division Queensland district president Stephen Smyth told Central Queensland News.

"With brand new equipment and technology, as well as shorter haul distances and lower strip ratios, it is inevitable that newer mines are more productive than ageing mines with older equipment, long haul distances and high strip ratios.

"There is no evidence that productivity outcomes at Caval Ridge and Daunia are related to insisting workers live in Brisbane or Cairns. If there is a link, we note the generous tax concessions companies like BHP get when they hire FIFO workers from the big cities and build camps and we urge governments to act on that.”

The Queensland’s government went to efforts to say that no 100% FIFO was a condition for its recent environmental approval of BHP’s Red Hill coal project.

While the proposed Red Hill longwall mine was shelved in 2012 and coal prices have worsened since, the Red Hill exploration lease provides extension opportunities to BMA’s nearby Broadmeadow and Goonyella Riverside operations.

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