Fish plant workers should benefit from stability of RMS pilot project: Minister

A successful pilot project in Raw Material Sharing (RMS) in the crab sector should improve the quality of employment for fish plant workers, says Trevor Taylor, Minister of Fisheries and Aquaculture.

Minister Taylor has been monitoring the public reaction to the government�s announcement on March 2 regarding a two-year RMS pilot project in the crab sector. He takes exception to the claims of Earle McCurdy, president of the Fish, Food and Allied Workers (FFAW), that the new system will leave plant workers with only nine to 10 weeks of work, or that no fish plant workers in the province will qualify for their " stamps" this year.

"Plant workers know all too well that the old system has not looked after them," says the minister. "They know that they have been caught in the middle as processors and harvesters seek to protect their own interests. They want more stable employment, improved incomes, more predictable work, and more opportunity."

"We all know that a sharing or cap system cannot create more work from the amount of crab available in the water," says Minister Taylor. "Reviews and reports commissioned by the government since 1996 have consistently stated that under a sharing system, plant workers will know roughly how much crab their fish plant will have. No more wondering if this year it�s going to be one million pounds or 10 million pounds to process. If fish plant operators can plan their operations, then their workers can also plan their lives.

"Generally speaking, everyone in the crab sector, including harvesters, should benefit from improved stability in the industry, more stable operations, more stable communities, and better industry planning over the longer term. Claims of no work for plant workers has nothing to do with the sharing system and has everything to do with fear mongering and federal government quota cuts. What we are doing as a government is introducing a measure of stability to help plant workers when they are facing a challenging season."

Minister Taylor also points to the efforts the provincial government has taken to create more work for plant employees. "Last year, we took action that led to a doubling of post-industrial pack production. This increased value-added work directly benefited plant workers. We intend to continue with this requirement and to continue to take action to strengthen our fishing industry."

Media contact: Alex Marland, Communications (709) 729-3733, 690-6047

BACKGROUNDER � RAW MATERIAL SHARING (RMS)

There is only a finite amount of snow crab (raw material) in the water and the federal government is expected to announce further cuts to the amount (quota) of crab that can be caught. Faced with less work stemming from these anticipated quota cuts, the Raw Material Sharing (RMS) system announced on March 2 will introduce a measure of regional stability for plant workers, by placing a cap on the amount of crab that each licensed fish plant can process.

Since 1996, four industry studies have recommended a RMS system, with the latest endorsement coming from the Fish Processing Policy Review Commission ("Dunne Report"). These reports have pointed to the likely benefits of a more orderly operating season, higher average port prices, longer employment periods, and additional processing. An RMS system contributed to a successful season in the shrimp sector last year.

The commission recommended the RMS system as a stabilizing measure to address concern about irrational and destructive behaviour in the crab fishery under the old pricing system. That system encouraged too much capital investment, chaotic operating seasons, and extreme and irrational competitive activity. The commission recommended that the cap system be tried "on a cautious trial basis to determine which of the claimed beneficial results will occur."

The combination of declining market prices, the high value of the Canadian dollar, and the potential for lower quotas had the potential to provide for a collapse in the crab sector under the old system. In addition to the RMS pilot project, changes to the Fishing Industry Collective Bargaining Act are planned to facilitate a more orderly process for price negotiations for all species. Included will be a dispute resolution mechanism for when the parties cannot agree.

Additional background information, including Minister Taylor�s March 2 news conference speaking notes, is available online at www.gov.nl.ca/releases/2005/fishaq/0302n05.htm

2005 03 09                         3:10 p.m.