Task Force to review Fishing Industry Collective Bargaining Act

A task force has been appointed to assess the effectiveness of the Fishing Industry Collective Bargaining Act as a continuing mechanism for negotiating fish prices in the province.

The announcement was made today by Environment and Labour Minister Oliver Langdon and Fisheries and Aquaculture Minister John Efford.

The Task Force is comprised of David A. Vardy (chair), who was deputy minister of fisheries from 1989-94, and Joseph O'Neill, currently assistant deputy minister of labour. Mr. Vardy, appointed chairperson of the Public Utilities board in 1994, is taking a leave of absence from that position to undertake the assignment as chair of the task force. Mr. O'Neill, who has 20 years experience in labour relations, will also work full-time with the task force for its duration.

They are to make their final report to government by January 15, 1998. This, the ministers said, will provide sufficient time for government to review the report and consider options for the 1998 fishery.

Mr. Langdon said that the Fishing Industry Collective Bargaining Act has been a progressive vehicle for harvesters and processors to negotiate fish prices, but the dynamics of the fishing industry have changed dramatically since the act was implemented in 1971, and there is a need to review the effectiveness of the act for this purpose.

Mr. Efford said that circumstances related to the crab fishery in particular over the past few years "have raised concerns about the effectiveness of the act as a vehicle for negotiating fish prices. With price impasses having occurred in the crab fishery in three of the last five years, both harvesters and processors are less than confident that the act is an effective mechanism to settle their labour differences and price disputes."

Mr. Efford noted that the 1997 snow crab fishery was delayed by about 15 weeks because of the impasse over crab prices.

"With snow crab accounting for approximately 50 per cent of the fishing industry's annual export value, we can not afford a repeat of this situation. It is time to bring stability to the collective bargaining process, so that settlements can be reached in a timely manner," he said.

Mr. Langdon, noting that the mandate of the task force is broader than issues related to snow crab prices, outlined the Terms of Reference for the task force. He noted that this type of approach was "extremely successful" in the case of the process followed for an offshore labour relations regime, "the result of which is a report that reflects very well the views and concerns of the stakeholders who submitted comments, and provides timely and practical information to government."

Mr. Efford said that in the case of the review of the Fishing Industry Collective Bargaining Act, the task force is being directed in particular to seek input from the Fish, Food and Allied Workers Union (FFAW), the Fisheries Association of Newfoundland and Labrador (FANL) and other industry stakeholders at all stages of its work. Both organizations, he noted, "agree it is time to evaluate the effectiveness of the act."

The full text of the Terms of Reference for the task force are follow. In summary, they grant authority to assess all aspects of the act, to consider dispute settlement mechanisms in other jurisdictions, and review the causes of crab price disputes that have occurred in the province in recent years, taking into account differentials between prices paid in Newfoundland and prices paid in other provinces or countries.

Both ministers highlighted the critical nature of this undertaking which reflects a commitment made by government earlier this year.

Contact:
Sean Kelly, Director of Communications, Environment and Labour (709) 729-2575 Josephine Cheeseman
Director of Communications, Fisheries and Aquaculture, (709) 729-3733

BACKGROUNDER

Fishing industry collective bargaining act

Since 1971, fish prices for most principal fish species in Newfoundland and Labrador have been negotiated under the Fishing Industry Collective Bargaining Act. Under this legislation, the Fish, Food and Allied Workers Union (FFAW) bargains on behalf of most fish harvesters throughout the province. Similarly, the Fisheries Association of Newfoundland and Labrador (FANL) negotiates prices on behalf of member companies. Generally, the prices negotiated become the benchmark for the industry as a whole. This process establishes "minimum" price benchmarks, and it is not unusual to find that prices paid in some years exceed the minimum prices negotiated.

The very nature of the fishing industry, in terms of seasonality and availability of different species at certain times of the year, presents specific challenges for collective bargaining between the parties in question. From this perspective, any lengthy impasse has major implications not only for fish harvesters, plant operators and processing workers, but also for the economy of the province as a whole. For example, a lengthy impasse on capelin prices could result in the fishery being lost fully because of the narrow window of opportunity for harvesting and marketing that species. While the present legislation provides for a conciliation process, the reality is that the nature of the fishery presents major challenges for the Fishing Industry Collective Bargaining Act to be fully effective. In the case of the snow crab fishery, there has been a price impasse in three of the last five years.

The Fishing Industry Collective Bargaining Act, when implemented in the early 1970s, represented a significant milestone in the establishment of collective bargaining for fish prices within the fisheries sector in this province. However, the dynamics of the industry have changed dramatically since then, and there is a common view within the industry, that the present legislation needs to be reviewed and/or other options considered. It is noted, for example, that fish prices are established on a different basis in certain other jurisdictions. The auction system has been adopted in some jurisdictions, while a provision for binding arbitration has been adopted in others. From this perspective, the Task Force announced today will undertake a comprehensive examination of various options, including the option of making specific amendments to the present legislation.

 

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Task Force to Assess the Effectiveness of

the Fishing Industry Collective Bargaining Act

for Negotiating Fish Prices

TERMS OF REFERENCE

Background

Since 1971, the Fishing Industry Collective Bargaining Act (FICBA) has been the vehicle under which fishermen and fish processors negotiate fish prices. However, in recent years, circumstances within the crab fishery in particular strongly indicate a need to review the effectiveness of the Fishing Industry Collective Bargaining Act for this purpose. Hence, Government is initiating a Task Force to assess the effectiveness of the Fishing Industry Collective Bargaining Act for negotiating fish prices.

Terms of Reference

1. Assessing the impact, relevance, effectiveness, and utility of the Fishing Industry Collective Bargaining Act to the collective bargaining process that exists in the fishing industry, its effect (if any) on the ability of the fishers and fish buyers and processors and their respective representatives to reach a negotiated price for crab/fish and to settle their labour differences, or if modifying, repealing, or replacing the said Act with another statutory or regulatory vehicle would better serve the general public interest and/or the interests of the parties to such negotiations;

2. Taking into account dispute settlement mechanisms in effect elsewhere in Canada and in other nations;

Assessing and determining whether some other approach, being an alternative means of setting the price of crab/fish would better serve the general public interest and the interests of the parties to such negotiations in avoiding or reducing the prospect for industrial disputes and action in future years, and to make recommendations concerning the same; including recommendations as to how pilot projects could be utilized to experiment with any proposed price setting mechanisms.

Inquiring into the causes of price disputes which have occurred frequently in the province's crab fishery in particular in recent years.

Evaluating the reasons for differences between crab prices paid in Newfoundland and prices paid in other crab fishing provinces and countries.

Taking into account input relevant to the above matters from joint FFAW/FANL committees created as part of the settlement of the 1997 crab price dispute.

3. Reporting on any other matter related to the above; and

4. Submitting a final report concerning the above matters by January 15, 1998.

Membership

The Task Force shall be comprised of two persons and research staff.

David A. Vardy is a former Deputy Minister of Fisheries for the Province. He has extensive knowledge of the fishing industry and a broad academic background relevant to his current assignment. Mr. Vardy will be taking a leave of absence from his position as chair of the Public Utilities Board to begin his assignment as chair of the Task Force.

Joseph O'Neill is presently the Assistant Deputy Minister of Labour within the Department of Environment and Labour. He has more than 20 years of experience in labour relations and was instrumental in the development of preventative mediation in the province. Mr. O'Neill will be seconded full time to this Task Force for its duration.