FIFO Enterprise Agreement: Understanding the Benefits and Terms

FIFO (Fly-In Fly-Out) is a common working arrangement in the mining and resources industry where employees commute to and from mining sites for a set period of time. To ensure the fair treatment of these workers, companies negotiate an enterprise agreement that outlines the terms and conditions of employment. In this article, we will explore FIFO enterprise agreements and their benefits.

What is a FIFO Enterprise Agreement?

A FIFO enterprise agreement is a legally binding agreement between a mining company and its employees that outlines the terms and conditions of their employment. Such agreements can be negotiated directly with employees or with a trade union that represents the employees.

The main purpose of a FIFO enterprise agreement is to ensure that employees are compensated fairly for their work, provided with safe working conditions, and granted any necessary entitlements.

Benefits of FIFO Enterprise Agreements

1. Improved Working Conditions

FIFO employees often work in remote locations and harsh environmental conditions. A well-negotiated enterprise agreement ensures that employees are provided with suitable accommodation, food, and transport to and from their home location. The agreement also outlines the number of hours an employee can work in a day or week, breaks, and rest days.

2. Competitive Remuneration

A FIFO enterprise agreement ensures that employees receive competitive remuneration that is aligned with industry standards. The agreement outlines the rates of pay for various job roles, overtime rates, and any allowances that are available to employees.

3. Job Security

A well-negotiated enterprise agreement provides job security to employees. The agreement outlines the length of the contract, any notice periods, and the procedure for dealing with redundancy or termination. It can also provide employees with the opportunity for career advancement and training.

Terms of a FIFO Enterprise Agreement

1. Duration of the Agreement

The duration of a FIFO enterprise agreement can vary from one company to another. It can be as short as one year or as long as four years. The agreement can be renegotiated when it expires.

2. Pay and Allowances

The FIFO enterprise agreement outlines how much an employee will be paid, including base salary and any allowances. The agreement also outlines the overtime rates and any penalty rates that apply.

3. Hours of Work

The agreement outlines the number of hours an employee can work in a day or week and any breaks provided. The agreement also outlines the number of rest days an employee is entitled to during their roster.

4. Leave Entitlements

FIFO employees are entitled to various types of leave, including annual leave, sick leave, and long service leave. The enterprise agreement outlines the amount of leave an employee is entitled to and how it is accrued.

Conclusion

In conclusion, a well-negotiated FIFO enterprise agreement is a crucial component of ensuring the fair treatment of employees who work in the mining and resources industry. It provides job security, fair remuneration, and improved working conditions for employees. Companies that prioritize the negotiation of a strong FIFO enterprise agreement will reap the rewards of a motivated and satisfied workforce.