Crab tie-up means plant workers turn to income support, says Opposition critic

CBC
·3 min read
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By the end of August, 300,000 pounds of snow crab had been dumped by N.L. processors, an increase of more than 400 per cent over 2022. (Terry Roberts/CBC - image credit)
By the end of August, 300,000 pounds of snow crab had been dumped by N.L. processors, an increase of more than 400 per cent over 2022. (Terry Roberts/CBC - image credit)
By the end of August, 300,000 pounds of snow crab had been dumped by N.L. processors, an increase of more than 400 per cent over 2022.
By the end of August, 300,000 pounds of snow crab had been dumped by N.L. processors, an increase of more than 400 per cent over 2022.

Heading into the 2024 season, the price floor for crab was set at $2.60 per pound and it has harvesters refusing to go fishing. (Terry Roberts/CBC)

Newfoundland and Labrador's lucrative snow crab season opened days ago, but harvesters haven't headed to the water due to a headlock around the pricing formula, which has fish plant workers applying for relief, says the Progressive Conservative fisheries critic.

After weeks of protesting, including shutting down Confederation Building, fish harvesters scored big with concessions on who they could sell their catches to.

The situation soured soon after, when the new crab price formula was revealed. Put forward by the Association for Seafood Producers, the floor price is set at $2.60 per pound and the harvester's share is set at 37 per cent of market value above $8 per pound. Harvesters are refusing to go out on the water with the current formula.

Bonavista MHA Craig Pardy called the situation unfortunate and said he'd hoped to avoid a repeat of last year, when there was a six-week delay to the start of the season.

"We got 450 employees at the plant in Bonavista. Many of them — after going through last year with the delay in the season [and] a new change in the formula for EI — have been short on their EI benefits," he told CBC News.

Pardy said he's heard that more than 50 Bonavista plant workers have had their EI support elapse and are now without income.

"Some of those have gone to the office to look at income support. and that's where we are. So how critical is it that we get this fishery started? It is critical," said Pardy. "The health and welfare and the livelihoods of many are on the line."

More than 180 people in trouble

The problem is something the Fish, Food & Allied Workers union said it has been trying to bring to the attention of the Newfoundland and Labrador government for months.

In an open letter dated April 5, FFAW president Greg Pretty told Gerry Byrne, the minister of immigration, population growth and skills, that recent changes to EI have hurt plant workers in recent months.

In November, the federal fall fiscal update noted regional unemployment rates were down, resulting in a reduction of EI benefits for some. The federal government said it was adding four additional weeks of regular benefits in certain economic zones, including Newfoundland and Labrador.

On top of adjustments in the number of weeks payable for regular benefits, workers now have to reach a minimum of 490 hours worked to qualify, instead of the previous 420. Their benefits are based on their best 16 weeks of work, as opposed to the previous standard of 14.

At the time, Pretty raised concerns over how the decision would affect seasonal plant workers, estimating they'd be out hundreds of dollars a month.

FFAW president Greg Pretty says the snow crab standoff is 'the most pressure we've had on this industry in my history with the union.'
FFAW president Greg Pretty says the snow crab standoff is 'the most pressure we've had on this industry in my history with the union.'

FFAW president Greg Pretty is calling for a meeting with Immigration, Population Growth and Skills Minister Gerry Byrne to discuss the financial hardship facing plant workers. (Patrick Butler/Radio-Canada)

In Pretty's recent letter, he said claimants got up to $400 less in benefits over the winter and their claims ran out four to six weeks before the 2024 season.

"While our union is working very hard to ensure an orderly and timely fishery in 2024, many processing plant workers have been without income for almost four weeks (an income loss that cannot be recovered), and have no other choice but to avail on social assistance," he wrote.

More than 180 unionized plant workers have contacted the union about the growing income gap, he said.

"For clarity, we are seeking programming that will allow these plant workers to receive economic support to stabilize the workforce and promote retention to prevent people from experiencing poverty," wrote Pretty.

He's calling for a meeting with Byrne to discuss what economic support programs are available to help impacted workers.

CBC News asked the FFAW for comment but did not hear back by publication time.

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