Fisheries and Aquaculture

November 15, 2007

Employment Adjustment Measures Approved for Displaced Workers at Trouty Plant

The Provincial Government has approved employment adjustment measures for displaced workers at the recently closed fish processing plant in Trouty. The plant closure was announced by the owner on October 31.

"As soon as our government was made aware of the closure of the plant, I made arrangements to meet with the Members of the House of Assembly for the districts impacted by this plant closure," said the Honourable Tom Rideout, Minister of Fisheries and Aquaculture. "We decided to recommend to the ministerial committee on fisheries that the displaced workers at the Trouty plant would qualify for benefits under the Integrated Transition Strategy for Displaced Plant Workers. I am now pleased to report that our government has decided that the situation at Trouty does qualify for benefits under the strategy."

Under this strategy, displaced workers and the community will qualify for the following services:

  • Transition support services to provide a one-stop entry point to help displaced workers develop an individualized transition plan;
  • Short-term job creation measures;
  • A wage subsidy to support transition to other jobs;
  • Regional economic diversification.
  • These programs are an integrated strategy to assist plant workers and regions impacted by permanent plant closures. The strategy was first announced by the Provincial Government in 2006.

    "I am very pleased that because of the foresight and initiative taken by our government in establishing the transition strategy for displaced plant workers, the residents of my district will now be better equipped to deal with this unfortunate situation," said the Honourable Ross Wiseman, MHA for Trinity North. "I encourage all who have been impacted by this plant closure to take advantage of the benefits this program has to offer."

    "Approximately 50 per cent of the displaced workers at the plant in Trouty were from Bonavista South District," said the Honourable Roger Fitzgerald, the MHA for the district. "I plan to work closely with them and provide information and direction on the services and resources available from the Provincial Government."

    The strategy is a multi-departmental initiative designed to approach the problem of job loss within the region from various angles. The support services are designed to help displaced plant workers to prepare for retraining opportunities that can be funded through the existing co-managed Canada-Newfoundland and Labrador Labour Market Development Agreement. The Provincial Government will also work with the community and municipal leadership to develop projects to address the needs of those who do not qualify for Employment Insurance benefits or those whose benefits will expire in the near future. As well, the province will immediately begin to work with the community to explore opportunities for long-term economic diversification in the region.

    Under the short-term job creation measures, eligible individuals are entitled to a maximum of up to one 14-week rotation under the program at a wage rate of $8.75 per hour.

    "It is always unfortunate when a fish plant has to close. Fish processing facilities are important employers in many rural communities in the province," said Minister Rideout. "In the case of Trouty, the plant employed workers from approximately 17 communities on the Bonavista Peninsula. This is a significant loss of employment for the region. We understand that some of the workers may be able to gain employment in other plants in the area. However, our government is aware that this is a devastating loss to those people who have lost their jobs. That is why this transitional support program is so important to communities who suffer the closing of their fish plant."

    The Integrated Transition Strategy for Displaced Plant Workers has already been activated in response to plant closures in Fortune, Marystown and Port aux Basques. To date, approximately $4.2 million has been paid out in program expenditures and work is ongoing. 

    "We will continue to work with communities and displaced workers to develop appropriate solutions. In doing so, our approach will address all the various aspects of community development," said Minister Rideout.

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    Media contact:
    Lori Lee Oates
    Director of Communications
    Department of Fisheries and Aquaculture
    709-729-3733, 690-8403
    oatesll@gov.nl.ca

    2007 11 15                                                     12:10 p.m.

     


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