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NLIS 2
June 28, 2006
(Executive Council)


Government announces framework to assist
plant workers and regions impacted by fish plant closures  

Tom Rideout, Minister of Fisheries and Aquaculture and Chair of the Cabinet Committee on Fisheries Issues, today announced a framework to assist plant workers and regions impacted by fish plant closures.  The framework will take a two-track approach to address the needs of individuals and the opportunities for economic diversification in regions where fish plants have closed.  Minister Rideout also announced that plant workers impacted by the Fortune plant closure are the first workers eligible for programs and services under the new framework.  

Joining in the announcement were Paul Shelley, Minister of Human Resources, Labour and Employment; Jack Byrne, Minister of Municipal Affairs; and Kathy Dunderdale, Minister of Innovation Trade and Rural Development.  

�While discussions to address a long-term restructuring strategy for the fishing industry are ongoing, government realizes that individuals are facing considerable stress and we are ready to respond to the needs of workers and regions when plants close,� said Minister Rideout.  �This cooperative framework approach will include the three orders of government and industry stakeholders.�  

See backgrounder for details regarding eligible plant closure.  

The Department of Human Resources, Labour and Employment will work in partnership with Service Canada-sponsored Employment Assistance Services (EAS) to set up a Transition Office in communities where there is a plant closure.  

�Government remains committed to long-term solutions for individuals,� said Minister Shelley. �This partnership approach is key to empowering people.  Support will be provided to plant workers to help them identify their best options, and to provide assistance in developing personal transition plans, with a goal to securing long-term income.�  

The Transition Office will serve as a single point of entry for access to accurate and consistent information and counselling on relevant provincial and federal programs.  Working together, provincial and federal officials will ensure that plant workers are well supported in their decision-making and also connected to any other agency or department that provides a service which may be of benefit to the individual plant worker in their transitional planning.  

To complement existing programs, Minister Byrne announced a Plant Worker Employment Program.  �We recognize that short-term solutions are necessary so that people can deal with their immediate financial needs,� said Minister Byrne.  �This program will work in cooperation with municipalities and other regional stakeholders to provide short-term insurable employment while plant workers are considering longer-term employment options.�  

As well, government is in the process of developing additional programs that will assist plant workers.  These initiatives will be announced as they are finalized.  

To complement the efforts of the Fishing Industry Renewal process that emerged from the May 24 meeting on the Newfoundland and Labrador fishery, government is also in the process of establishing a Working Committee on Workforce Adjustment.  The working committee, which will be one of several government and stakeholder groups, will be tasked to identify and assess options for responding to the needs of workers who may be affected by industry restructuring.  

The Provincial Advisory Council on the Status of Women will also participate in the working committee.  A significant proportion of workers in the fishing industry are female, and government recognizes that any programs designed to help workers must recognize that fact.  

Government already offers a comprehensive set of programs to help small businesses, cooperatives, and economic development organizations.  In addition to helping workers, provincial and federal economic development agencies will make an enhanced collaborative effort to work with community and business stakeholders on regional economic diversification efforts.  

Minister Dunderdale noted, �The focus of these efforts will continue to be on creating and expanding viable business opportunities in a region.  In each region designated under the framework, government will establish a new coordination committee of the main economic development agencies including federal, provincial, regional and community partners.�  The purpose of the new coordination committee is to identify and accelerate the best business ideas and economic development projects in an effort to replace as many jobs as possible in the region.  

While it may not always be possible to replace every job lost in a plant closure, it is important to have a concerted effort to accelerate every worthwhile opportunity.  This formal partnership structure will ensure that whenever a plant closes, there will be an intensified focus on coordination of regional economic diversification efforts, in addition to existing initiatives,� said Minister Dunderdale.  

The province will continue to pursue an early retirement program with the federal government. �Plant closures that may occur in the fishing industry will have a significant impact on our older plant workers,� said Minister Rideout.  We recognize that other provinces are going through similar circumstances, but we remain convinced that the profound circumstance faced in Newfoundland and Labrador , which has a unique cultural and historical attachment to the fishery, justifies early retirement options.�  

Discussions have been initiated with community and industry stakeholders in Fortune.  It is anticipated the Plant Worker Employment Program will commence in Fortune as soon as projects can be coordinated with local municipalities and groups that manage employment projects.  Additionally, a small number of plant workers in Fortune recently hired under an interim employment project will be transferred to the Plant Worker Employment Program and retroactively provided with the wage rate assigned to the program.  The Transition Office will open in the community by mid to late July.

Minister Rideout said, �We recognize that there is potential for future plant operations in Fortune.  However, in the absence of a definitive plan and considering the time that has elapsed since the closure, we are compelled to provide assistance and support to impacted plant workers and explore further opportunities for economic diversification in the region.�  

Minister Rideout concluded, �The government remains committed to working in partnership with communities, industry stakeholders and the federal government so that we can move toward a sustainable, competitive fishing industry and strong diversified economic regions in Newfoundland and Labrador .�  

The Cabinet Committee on Fisheries Issues, which oversees the framework, also includes Loyola Sullivan, Minister of Finance and President of Treasury Board; Clyde Jackman, Minister of Environment and Conservation; Trevor Taylor, Minister of Transportation and Works; Roger Fitzgerald, MHA Bonavista South; and Harry Harding, MHA Bonavista North.  

Information on program guidelines and an application form can be found at � www.gov.nl.ca/mpa/fpwsp  

Media contact:

Lori Lee Oates, ABC, Communications, Fisheries and Aquaculture, (709) 729-3733
Ed Moriarity, Communications, Human Resources Labour and Employment, (709) 729-4062
John Tompkins, Communications, Municipal Affairs, (709) 729-1983
Lynn Evans, Communications, Innovation Trade and Rural Development, (709) 729-4570
 

BACKGROUNDER  

Eligible Plant Closure

An eligible plant closure would include a situation where all the species licences for a plant have expired, been surrendered, or been revoked, and there is no plan to re-issue these licences for the facility.  

Government is also prepared to initiate the framework in communities where, even if a plant technically still has valid licences, the plant has not operated for a minimum of 12 months and all reasonable indications are that the plant will not open in the near future.  This might include, for example, a situation where an owner appears to have permanently ceased operations and after one year of closure no other operator has come forward with a viable business plan.  

To ensure the effectiveness of the transition services in a situation like this, there would also need to be a receptive environment for the transition services as evidenced by the support of the community and the workers' union for implementation of those services.  

At this time the framework does not apply to a situation where the operator is in receivership and there are still decisions to be made by the receiver regarding the future of the plant.  A plant in this situation might re-open or the receivership might evolve into a permanent closure.  In situations like this, government will make its decisions on a case by case basis as the situation evolves.  

The framework does not apply in a situation where a plant has been closed for less than two years and the operator has not given any indication of long-term intentions.  

Plant Worker Transition Office (Transition Office)

The Plant Worker Transition Office will coordinate series of supports and services provided at a one-stop point of entry (known as a Transition Office) for displaced plant workers.  

The supports and services provided will include assistance with understanding the various options available to plant workers, labour market information on the types of jobs that are in growing demand, the training required, and in some cases, referral to the appropriate service provider.  

The Transition Office will be staffed by Human Resources, Labour and Employment (HRLE) and the Service Canada-sponsored Employment Assistance Services (EAS). Working together they will ensure that plant workers are well supported in their decision-making and also connected to any other agency or department that provides a service which may be of benefit to the individual plant worker in their transitional planning.  

Plant Worker Employment Program

The Plant Workers Employment Program is a provincially-funded, targeted employment creation program focused on creating short-term employment initiatives for fish plant workers who are unemployed as a result of the permanent closure of a fish plant, and have not been successful in establishing current year eligibility for Employment Insurance benefits.  

The program is intended to provide one-time transitional employment assistance and also offer participants access to transitional counselling services to ensure full consideration is given to longer term transition options.  All eligible individuals will be entitled to a maximum of up to one fourteen week rotation under the program at a wage rate of $8.75 per hour.  

The program utilizes a community-based sponsor and delivery model.  Employment supports provided through this program are aimed at projects which provide an enduring benefit to communities and which have an economic development or community infrastructure focus.  Wherever practical, the program will leverage and combine with other government programs or community-based fundraising initiatives to supply materials, specialized labour, and other non-labour related project components.  

To be eligible for the program, individuals must be identified either through a seniority list provided by the union, or from a company list of employees.  

Enhanced Economic Diversification

The enhanced economic diversification efforts will build upon opportunities identified by government�s Comprehensive Regional Diversification Strategy announced in March 2005.

//www.gov.nl.ca/releases/2005/intrd/0318n02.htm  

The cooperation and collaboration between governments and economic development agencies was previously carried out on a more informal basis.  Under the enhanced structure, regular meetings will be held and a more concerted, formalized effort will be made to share information among partners. There will also be more involvement at the community level.  

2006 06 28                                                        9:55 a.m.


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