Minister dismayed by latest shrimp impasse

Trevor Taylor, Minister of Fisheries and Aquaculture, is frustrated that price negotiations between inshore shrimp harvesters and processors have once again broken down.

The Fish, Food, and Allied Workers (FFAW) union and the Association of Seafood Producers (ASP) agreed in early March to a timetable and negotiating process that would allow for an early April opening of the shrimp fishery. This included a written agreement, signed by both parties, supporting a Final Offer Selection (FOS) model of arbitration in the event of a lack of a resolution to address industry issues. The FFAW and ASP together agreed on an independent arbitrator who would receive price proposals from both parties, review market and exchange rates, and select the proposal that better reflects market conditions. On Sunday, the independent arbitrator handed down a decision favouring the ASP�s proposal. The next day, the president of the FFAW announced that the union was not satisfied with the arbitrator�s decision, and that it is recommending that shrimp harvesters stay ashore until a better price is negotiated.

"Given our past experience, I�ve had mixed feelings about the final offer selection process from the beginning," said Minister Taylor. "Less than a month ago, I received signed letters from the FFAW and from the Association of Seafood Producers confirming that they would respect an independent arbitrator�s price decision. Both parties insisted that they would honour the bargaining process. Now one party doesn�t like the decision, so it�s telling its members not to abide by it. We�ll, that�s just not good enough."

Given the history of price disputes between harvesters and processors, Minister Taylor has been concerned about the likelihood of another shrimp fishery disruption. On January 22, 2004, he put the shrimp industry on notice that if they could not reach an agreement for the 2004 shrimp fishery, that within a week that he would impose a solution. In the absence of a joint proposal, on February 4 Minister Taylor announced that an electronic hail-at-sea auction was being implemented. The auction system was deferred at the request of the FFAW and ASP in favour of a bargaining process that culminated with Sunday�s FOS decision.

"Obviously the parties failed to sharpen their pencils. Final offer selection only works if both sides are close," said the minister. "While I am frustrated at the breakdown in process, this is a matter of price negotiation, and it is the responsibility of both parties to resolve it. It isn�t government�s job to set the price. We have exercised our role in facilitating a process that both parties can agree to. If one of the parties doesn�t like the outcome then all it does is show that my original plan to implement an auction system was probably the right one. Over the past 10 years, the settlement of fish prices has been a constant source of angst, and the system clearly needs to be overhauled. You can�t put a Band Aid on something that needs a long-term fix. The shellfish industry is too important to our rural economies."

Added Minister Taylor: "Throughout this process, both sides have said to me that they cannot live with the traditional form of collective bargaining. In February, they said that they could not let the market set the price in a hail-at-sea electronic auction. And today, as in previous instances, we are told that FOS binding arbitration is not working. These are the only options available. The industry has to come to an agreement on one or the other."

Media contact: Alex Marland, Communications, (709) 729-3733

2004 04 07                                        1:55 p.m.