New collective bargaining model established for fishing industry

Environment and Labour Minister, Oliver Langdon, and Fisheries and Aquaculture Minister, John Efford, today announced amendments to the Fishing Industry Collective Bargaining Act that will ensure a sound collective bargaining process and the timely opening of our fisheries. The ministers were accompanied by Earl McCurdy of the FFAW and Alastair O�Rielly of FANL.

The amendments entrench as permanent the collective bargaining model for the fishing industry that has been the subject of a pilot project for the last two to three years. This model is based on an interest-based approach to negotiations and settlement of outstanding issues by arbitration. The model uses a three-phase approach to negotiations which includes: (i) a fact-finding and issue identification phase; (ii) a negotiation phase; and (iii) where necessary, settlement of outstanding issues by final offer selection without strike or lockout.

"By all accounts, the model used as a pilot project has been very successful and an independent evaluation of the project only served to confirm it," said Minister Langdon.

The stakeholders are currently using this model to set fish prices for six major species: crab, shrimp, cod, lumpfish roe, capelin, and squid. The legislation allows the parties to use this method to set the price of other fish species as well.

"This collective bargaining model is responsible for the timely opening of our fisheries, improved quality of our fish products, and improved delivery to international markets," said Minister Efford. "The resulting increase in market confidence in Newfoundland and Labrador fish products has been favourable for the industry and the economy."

Both ministers commended the FFAW and FANL for the commitment and support they have provided for this new model of collective bargaining. The stakeholders� participation has contributed to a more positive working relationship and ensures this model reflects their current and anticipated needs.

Media contact:

Sean Kelly
Communications
Department of Environment and Labour
( 709) 729-2575.

Sonia-Glover Sullivan
Communications
Department of Fisheries and Aquaculture
(709) 729-3733.

2000 04 07 10:10 a.m.

From 1971 to 1997, fish prices for the principal species in Newfoundland and Labrador were negotiated under the legislative framework provided by the Fishing Industry Collective Bargaining Act. Under this legislation, the Fish, Food and Allied Workers/Canadian Auto Workers Union (FFAW/CAW) have bargained on behalf of the majority of the province�s fish harvesters. Although it has not been formally accredited as an employer organization, the Fisheries Association of Newfoundland and Labrador (FANL) has been recognized by FFAW/CAW as the bargaining agent for processors in the province. Accordingly, the two organizations have engaged in collective bargaining over price and other matters in the fishing industry.

Prior to 1997, price disputes between harvesters and processors and withdrawal of fishing services became increasingly prevalent in the industry, culminating in a three-month delay in the crab fishery in 1997. While it was recognized that the Fishing Industry Collective Bargaining Act had been useful to the industry stakeholders, the dynamics of the fishing industry required that a review should be made to determine the current effectiveness and future viability of the provisions.

In 1997, the Task Force on Fish/Crab Price Settlement Mechanisms was appointed to investigate this issue; its report was presented to government on January 15, 1998. The chief recommendation of the task force was to implement a three-phase interest-based approach to negotiations on a pilot project basis. The first phase comprised interest identification and fact-finding exercises in which the parties to negotiations could identify critical shared interests. The second phase comprised negotiation activity. The third phase, where necessary, comprised submission of unsettled issues to final offer selection (FOS) arbitration.

An independent evaluation of the pilot project, completed in November 1999, determined that it was very successful. Under this model, fisheries opened on a timely basis, quality standards improved and were consistent, and market confidence in the ability of Newfoundland and Labrador�s fishery to supply high quality products on time increased dramatically. The independent market consultant, hired to provide market information to the parties throughout this process, indicated in his submission to the evaluation that use of this model provided stability to the fishing industry, something highly valued by the major retail and foodservice buyers in the U.S market.

In his report, the consultant recommended continuation of the model and review of some of the legislative provisions. As a result, government engaged the stakeholders in consultations about the review, to identify what changes should be made to better reflect the reality of using the model.

The resulting legislation is supported by the stakeholders and reflects their current and anticipated collective bargaining needs. The model continues to employ three phases: interest identification and fact finding; negotiations; and, where necessary, settlement of outstanding issues by arbitration. The legislation continues to offer the parties a choice of arbitration, but the final offer selection model is outlined in detail, reflecting the stakeholders� commitment to using that style of dispute resolution.

In accordance with the consultant�s recommendation, the legislation includes a provision that allows the parties to opt out of the model during a two-month window, once every two years. This provides the parties with an opportunity to review their positions.

The legislation also facilitates the accreditation of a processors� organization for the purposes of collective bargaining with the harvesters� union, the FFAW/CAW. Accreditation will be granted by the Labour Relations Board, based on membership of those processors that produce the majority of fish. The volume of fish produced will be measured in terms of finished product weight; the statistics will be provided by the Department of Fisheries and Aquaculture, through their annual production survey. The Labour Relations Board will use an expedited decision process, with a final determination on the question of accreditation delivered within 30 business days of the receipt of an application. An accreditation order may be challenged during a two month window, once every two years, on the basis that the organization no longer represents processors who produce the majority of fish.

To create a stable industry for a minimum of two years, the bill also contains a provision to limit challenges to the union�s certification order to a two-month window, once every two years. It is standard labour legislation practice to attach this raiding opportunity to the expiration of every collective agreement, regardless of its duration. However, with collective agreements traditionally only negotiated for one year in the fishing industry, the potential for annual raiding activity can create an unstable environment, thereby weakening the intent of this collective bargaining model.