NLIS 4
August 31, 2001
(Fisheries and Aquaculture)
 

 Minister comments on current negotiations on shrimp prices

Fisheries and Aquaculture Minister Gerry Reid today commented on the ongoing negotiations between the Fisheries Association of Newfoundland and Labrador (FANL) and the Fish, Food and Allied Workers (FFAW/CAW), to determine a price whereby the shrimp fishery in the province can reopen. The fishery has been closed since July 3, 2001 leaving some 1,300 plant workers in 97 communities out of work, and affecting some 1,500 fishermen operating 360 vessels.

"I have been extremely concerned about this situation and the drastic impact it is having on our rural communities and people," said Minister Reid. "During this past week, the FFAW and FANL have been involved in intensive bargaining sessions in an attempt to set a price for shrimp which will get this fishery opened in the next few days. I have been closely monitoring their progress, and have discussed the situation with representatives from each group several times since Monday."

As of this afternoon, the groups have been unable to reach an agreement on price, and therefore the Final Offer Selection model is being implemented, requiring that each submit a final price offer to the arbitrator, Mr. David Vardy, this afternoon.

"While offers have been submitted, both parties have informed me that their offers may be too far apart and their positions too entrenched for either of their final offers to result in the opening of the fishery."

The Final Offer Selection model allows the parties to continue to bargain and to find a mutually agreeable solution prior to a final decision being rendered by the arbitrator. The arbitration decision is expected next Friday, and both parties have expressed to the minister, a desire to continue these negotiations while the arbitrator continues his deliberations. 

"On this basis, the premier, along with the deputy premier and I will work together so that we may be able to facilitate an agreement between the parties. We have contacted both the FFAW/CAW and FANL, and have asked both to have their bargaining teams available to meet us on Tuesday morning. At that time we will continue a facilitation process for as long as it takes to resolve this matter," said Minister Reid. "There has been some suggestion in the media that government should subsidize this fishery. I want to make it clear right now, we will not be considering any subsidies. However, we are convinced that a resolution can be achieved, and on Tuesday we are going to aggressively work to find that resolution."

Minister Reid reiterated government's commitment to work with industry and the federal government on the main challenge facing the industry, the 20 per cent tariff on product into the European Union (EU). However, the immediate priority is get the fishers and plant workers back to work in the shrimp fishery immediately.

Media contact: Elizabeth Matthews, Communications, (709) 729-3733 or (709) 727-3438.

2001 08 31                                                  3:55 p.m.