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'FIFO' Feels The Crunch??

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Old 14th Jan 2009, 00:49
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'FIFO' Feels The Crunch??

Heard on Perth Radio 6PR NEWS this morning -

A 'Rumour' as yet unconfirmed, that Argyle Diamonds have given Notice to 109staff from a total of 161, i.e.
70% of that workforce,
and that another 250 McMahons contractors have also been given the 'DCM'.....

Just 'confirmed' by a 'Mum' who has rung the station to say that her son, an underground miner, has just 'been sacked'....and he was a FIFO worker.

So, I wonder how this will affect flight crews who service the FIFO Industry?
Can't be good news?

Good Luck guys and gals.
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Old 14th Jan 2009, 05:01
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Here is the article from the paper


Argyle diamond mine cuts jobs

Ben Sharples, AAP

January 14, 2009 11:48am
RIO Tinto Ltd will cut production and reduce the workforce at its Argyle diamond mine in WA, shedding more than 200 jobs.

The global miner said today that an underground expansion would be ``slowed to only critical development activities'', resulting in a reduction in the workforce and demobilisation of contractors.

``Given global market conditions, we will also reduce diamond production by taking an extended maintenance shutdown of the diamond processing facilities for up to three months, commencing in March,'' Argyle Diamonds chief operating officer Kevin McLeish said.

The $US1.5 billion ($A2.26 billion) expansion was expected to be completed by December 2010 and would extend the life of the mine to 2018.

Commodity prices have sunk amid the global economic crisis as demand has slowed, with many producers forced to cut output and shed jobs to remain competitive.

Rio Tinto is planning to axe about 14,000 jobs worldwide and reduce capital expenditure by up to $US5 billion ($A7.55 billion) this calendar year to help conserve cashflow and reduce debt.

The company declined to comment on the job losses at Argyle but it is understood that about 60 to 70 positions will be axed.

``While there will be some redundancies unfortunately, every effort is being made to minimise through redeployment,'' spokesman Gervase Greene told AAP.

Macmahon Holdings Ltd, the primary contractor at Argyle since November 2006, said Rio Tinto's move would cost it contract revenue and force about 200 redundancies.

Macmahon's revenue is expected to fall from about $80 million to just under $20 million per year until full development at the site restart.

Argyle is about 2500km north-east of Perth and has an average annual output of 20 million carats, producing 90 per cent of the world's pink diamonds.

``We remain convinced that the diamond business has excellent long-term prospects,'' Mr McLeish said.

Rio Tinto this week suspended an underground expansion at the Northparkes mine in central-western NSW, deferred an automated train program in WA and postponed an expansion to its Corumba iron ore mine in Brazil.

The suspension at Northparkes resulted in the loss of 346 jobs.

Rio Tinto shares gained 26 cents to $40.61.

Last edited by Mr. Hat; 14th Jan 2009 at 10:40. Reason: bad taste comment by mr hat..
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Old 14th Jan 2009, 10:49
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Sounds to me like Rio Tinto are just playing the pink diamond price. Less production, more value, higher share price. They have 90% of the market...
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Old 14th Jan 2009, 22:00
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Take it from someone on the inside, there's more to come.

Rio is in a real tight spot with many senior heads rolling this week, and the Pilbara operations to start feeling it next week.
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Old 15th Jan 2009, 01:53
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Interesting aside

This was the ad at the bottom of this post:

Ads by Google
Karratha Mine Jobs
Grow your career fast at Rio Tinto Karratha. Submit your resume now.
www. RioTinto. com/ Careers
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Old 15th Jan 2009, 02:01
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I believe the Queen owns 45% of Rio.......... or did.........I wonder what the Royal cutbacks are going to be!

J
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Old 17th Jan 2009, 07:48
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Hehehe,,,,, I was saying the very same thing about threee weeks ago and was howled down by those that know everything....... Hows it looking there now Topend3?
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Old 18th Jan 2009, 02:10
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Not to try and reduce the significance of the news in your thread, but I wasn't reading too carefully and when I read 'FIFO' I thought you were referring to that old adage about how to get and keep a job - 'Fit In or F*ck Off'.

I have know real knowledge of actual FIFO operations so unfortunately cannot comment on that part of this thread.
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Old 18th Jan 2009, 04:35
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The FIFO thing has been changed to FO (fly out) and diddley squat to show for it

Nothing to show for WA boom

Liam Barlett

January 17, 2009 05:00pm
WEST Australians have every right to feel dudded. The so-called unrivalled boom has come and, according to the official figures, gone, and has left not much.

Take a drive through city streets and try to get a sense of what the ``once-in-a-lifetime'' economic picnic delivered.

There's the odd new chrome and glass monolith with the name of a mining company stapled to the side of it, but apart from that, where's the public benefit? Where's the social dividend associated with all the prosperity?

Time lapse video of the Perth city skyline with the ferris wheel spinning

We've been rolling in excess funds for the past five years and, still, we have no new football stadium, no new indoor sporting venue and no new state museum. The Northbridge rail line is still above ground and the city foreshore remains sterile and undeveloped.

The East Perth power station site has been left to rot, the mothballed Entertainment Centre is a terrible eyesore and the much-vaunted urban renewal around the WACA Ground is half-baked.

Apologies at asking another rhetorical question, but how is all this non-achievement possible given the vast amount of wealth that has flowed through state coffers?

In 2004, with the boom kicking in, former treasurer Eric Ripper booked a surplus of $799 million. The following year it delivered $1.104 billion, then $2.59billion, $2.25 billion and last year $2.507billion.

And remember those riches are independent of the billions that we sent off to Canberra to fatten the national wallet.

Based on those numbers, Mr Ripper had at least $9 billion over and above the normal operating cost of running the state to spend on infrastructure from which all taxpayers could benefit.

Regrettably, the Gallop government delivered a southern train line that was started by the Court government, a broken election promise to sink the Northbridge line and an indoor stadium, which is still to be finished.

Similarly, the Carpenter government dithered on development and allowed self-interest from the football lobby to delay, perhaps terminally, the construction of a major outdoor stadium.

On the strength of that, an outsider would be forgiven for thinking that treasurer Ripper was publicly horse-whipped, tarred, feathered and sent to socialist re-training camp in Siberia. But no, wait for it, Mr Ripper has actually been promoted.

Notwithstanding that his record with the purse strings probably qualifies him to be Bernie Madoff's accountant; this bloke is now the Leader of the Opposition.

Mind you, he has been leading for quite some time. He led us all into higher land taxes, higher stamp duties and higher payroll taxes. He led an escalation in government spending that went from $12 billion to $16.8 billion in the same period of record surpluses. So, not only did we completely blow the farm, but at the same time, we were spending like a drunken sailor on the public service. A 30 per cent increase over five years and what do we have to show for it?
The answer is becoming monotonous; not much.

The best that can be said is that we now have better-paid nurses, teachers and police officers, who are all now ranked a lot higher in national terms to their respective colleagues.

But given that most of them were woefully underpaid for so long, that really doesn't say a lot.

The lack of any decent physical legacy would also be understandable if we could point to a major issue and consider it fixed but try as I may, I can't find one. Did the extra spending solve the problems in our health system? Of course not.

Is our education system the best in the country as a result of the extraordinary run of prosperity? Certainly not.

Truth be told, we spent half of it arguing the merits of OBE and the other half trying to find the courage to axe it completely.

The mismanagement of these ``boom'' dollars is verging on the criminal when you consider the achievements of Victoria under vastly different circumstances.

The world-class Rod Laver Arena, the Southbank precinct, Docklands and Federation Square are all excellent public projects that were delivered to Melburnians on the back of a lot fewer royalty receipts from the big end of town than we've enjoyed. The Victorians didn't have our stellar growth rate, nor did they enjoy record real estate development but then, they didn't have SpongeBob Squarepants in charge of the purse strings either.

Even Sydney managed to massively redevelop Darling Harbour during a time when New South Wales was a relative basket case compared with WA. And therein lies our next problem.
Now that the boom party is over, the bulk of any federal infrastructure funds will go straight to those states in the most precarious economic positions and that means, as usual, the West will be nowhere near the lion's share.

Sadly, the level of public debate doesn't seem to indicate that any of this weighs particularly heavily on the minds of our politicians. Most of their bleatings in recent weeks have centred on either distancing themselves from the odious Brian Burke or complaining that the Royalties for Regions scheme is going to paralyse the state's development.

Well, here's a newsflash; why shouldn't country taxpayers get a chance to blow it all? Our public leaders have spent the past five years blowing the bank on a capital city which has virtually nothing to show for it, so why not give some of it back to country towns that have long been ignored.

There are too many regional centres that badly needed government assistance during those boom years, but instead were used and abused by the pragmatists at the top of the terrace.
Port Hedland, Tom Price and Karratha require public monies now. So do Esperance and Kalgoorlie. There's a desperately needed upgrade for the Busselton jetty, which has been left to rot away in Geographe Bay, and so the list goes on.

This state has spent half a decade playing horse while the national economy has been delighted to be the jockey and with the race all but over, the trophy cabinet is bare.

Oh sure, if you're in the market for a cheap holiday home down south or a second-hand Marloo with only 10,000 on the clock, things are looking up. But if you had a longer-lasting legacy in mind, forget it.

Perth is a great city that still has a special feel to it, but it could have been so much more.

And as the job queues get longer and the royalty cheques from the miners get smaller, one can't help but think the opportunity of a lifetime may have been missed with a completeness that is staggering to comprehend.

*Liam Bartlett is a reporter with 60 Minutes on Channel 9. The program returns on Sundays at 7.30pm from February 22. Liam will write on a monthly basis for The Sunday Times.


--------------------------------------------------------------------------------

Last edited by Mr. Hat; 18th Jan 2009 at 09:25. Reason: swipe at politicians and business people that thought they were clever during good times
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Old 21st Jan 2009, 00:36
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From Radio 6PR this morning ...... and also put in another thread.....

Ravensthorpe Mine to close WEF this morning.

Workers / contractors told terms like 'suspended ops' and 'rampdowns' at a work (Stopwork) meeting this morning.
Numerous flights to operate during today to uplift staff / contractors.

Staff / contractors told to vacate and tidy their rooms - allegedly - pack their gear, and gear and 'excess' staff will follow on trucks later.

Contractor on radio giving his version of events.

From CH7...some 2,000 workers affected apparently!

Last edited by Ex FSO GRIFFO; 21st Jan 2009 at 01:25.
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Old 21st Jan 2009, 04:59
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Watching the off loading of pax here at Perth from Ravensthorpe. Apart from the news crews set up at National Jet the Feds are there as well waiting for possible trouble.
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Old 21st Jan 2009, 19:38
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BHP announced today that up to 3400 jobs from their Australia wide workforce to go immediately.

From smh.com: 6000 jobs axed as BHP feels the pinch

6000 jobs axed as BHP feels the pinch

Jamie Freed

January 22, 2009

BHP BILLITON broke months of silence yesterday on its plans for dealing with the plunge in metals demand by revealing it would sack nearly 6000 workers around the globe and close its disastrous Ravensthorpe nickel mine in Western Australia.

About 3400 Australian employees and contractors will lose their jobs as a result of BHP's decision to slash WA nickel and Queensland coking coal production and reduce the workforce dedicated to a proposed expansion of its Olympic Dam copper-gold-uranium mine in South Australia. The redundancies will lead to $US500 million ($765 million) in charges.

"We have had some reduction in activities and reductions in production," said BHP's chief financial officer, Alex Vanselow, after the release of the miner's December quarter production report. "These are very serious decisions … we don't take them lightly, but they are the necessary and correct decisions."

The decision to close Ravensthorpe - which was opened in May - and an associated portion of its Yabulu nickel refinery in Queensland will result in total writedowns of $US3.7 billion on the $US2.8 billion project. The impairments are higher than the project costs because they include working capital and other spending.

In addition, BHP disclosed Ravensthorpe will have lost at least $US546 million by the time it closes in June, including losses reported last year.

BHP also revealed its half-year results would take a $US1.6 billion hit due to the timing of its copper shipments, including a $US333 million hedging loss.

A UBS analyst, Glyn Lawcock, said BHP's December quarter production was in line with expectations, but sales had lagged production.

"[Coking coal] sales were down about 15 per cent on production," he said. "At the end of the day, the sales numbers are more important."

BHP said it would cut annual coking coal output by 10 to 15 per cent during the present half due to weak demand, at the cost of 1100 jobs in Queensland.

It has not changed its iron ore production or sales forecasts, but has admitted it is receiving prices below the benchmark on many shipments.

For the first time, BHP also said it would need to install water injection to help maintain production at its huge Atlantis oilfield in the Gulf of Mexico.

A Macquarie Equities analyst, Brendan Harris, said that was a concern because Atlantis was a key component of BHP's growing petroleum division.

Rio Tinto yesterday said it would slash its aluminium production by a further 6 per cent, bringing its cuts to 11 per cent of its smelting capacity. It will also cut its alumina production by 6per cent.

Those moves will force it to sack 1100 workers globally, mostly in Canada and Europe. Its Australian operations will not be affected by the cuts
.


An ominous sign if ever there was one for the FIFO industry. One of the reasons I and many others decided to keep my involvement in aviation to RPT operations.

Regards,

OpsN.
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Old 21st Jan 2009, 21:23
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but they said the mining boom was going to last another 20 years... dumb and dumberer
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Old 22nd Jan 2009, 14:04
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All quite on the western front

Sources at Q rampies advise that they are very quite, and the 140 odd "casuals" employed through a labour hire company are looking at being thinned to about 70.

Union holds grave fears for the employment of all Q staff on full / part time positions and is suggesting that those "casuals" that have passed recent interviews for full time jobs at Q be given a special status as "Q Part time Temps", just so they stay on the books and receive the entitlements that they would otherwise miss out on.

Most of the a/c coming back from from up north are at least only half full.

What do we have to show for the boom........

the on-set of a bloody big bust.

And I don't mean titties.
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Old 22nd Jan 2009, 22:56
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What a load of old tosh airsic!
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Old 22nd Jan 2009, 23:52
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'Mr Hat' couldn't agree more with yr addition here. Some of the trouble with this country & it's inhabitants as well as probably most of western society is that we live to the moment, we rarely put away for a rainy day. I can recall when the Oil industry namely Mobil in my case went thru that new word (at the time) 'restructuring' meaning all of the Tulla employees where given notice & only those that the Co considered 'right' where re-hired. The amount of guys who basicly went to the wall 'cause they lived to the level they where being paid, few had a back-up plan or the forsight that perhaps one day the gravy train was going to be no more. In todays uncertain world everyone needs to have a back-up plan for nothing is forever. Fancy relying on China to help sustain our economic climate, sheeeeez.

Ugly year ahead for sure, & who can we blame for that? It's pretty obvious, ourselves!

My advice to anyone who wants to listen, if you have a stable job DON'T leave it!



Wmk2
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Old 23rd Jan 2009, 00:02
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I predicted this some months ago, and so far it is going as I thought.
Town is down to about 60% of its usual occupation level at the moment with more cuts forcast.
I left Perth yesterday and the load factor was about 50%. very rare on that particular route. fly in fly out is rapidly becoming fly out and stay home.
I haven't seen so many aircraft Idle at Perth for quiet some time.
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Old 24th Jan 2009, 01:16
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i must admit i under-estimated the impact this would have on the pilbara. QF this week added some additional 737 capacity into KTA that was announced some time ago. Loads have been significantly down this month so far and they are looking at having to chop out 1-2 flights a day if this keeps up. could be even worse for the new entrant, virgin, who dont have a contract to fall back on as QF do with their woodside support.
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Old 24th Jan 2009, 01:28
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There shouldnt be any need to import Pacific islander temp visa fruit pickers then?
And Phillippina mine site bed makers?
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Old 24th Jan 2009, 03:29
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The funny thing is most pilot groups couldn't organise a pay rise during the boom (unlike every other sector) now just you wait to see how quickly the pay cuts/leave with out pay/unplanned annual leave requests come up.

Forget the pay rises now boys cause the people that are paid the big bucks to plan for these eventualities in some companies seem to have been asleep at the wheel. Make hay while the sun shines I think the saying goes.
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