Rationalization in the processing sector is expected to be a gradual reduction in processing capacity in response to regulatory measures and business decisions. While there will be no active measures by the Province to close processing plants (e.g., processing licence buy-out), some plants may close on a permanent basis resulting from corporate decisions or regulatory measures (e.g., the withdrawal of licences from inactive plants.)

Workforce adjustment supports will be positioned to assist with industry renewal and to facilitate transition out of the industry where necessary.

The Province has collaborated with the federal government on adjustment supports in response to the closure of the FPI processing plant in Fortune. Based on this experience, the Province will provide adjustment support measures should a fish plant close permanently. This will include a comprehensive suite of measures to assist during the transition period which will include:

• Transition support services to provide a one-stop entry point for displaced plant workers and help them develop an individualized transition plan;
• Short-term job creation;
• A wage subsidy to support transition to other private sector jobs; and
• Regional economic diversification (no additional expenditure).

Additionally, the transition support services and job creation activities will help plant workers qualify for retraining opportunities that can be funded through the existing co-managed Canada-Newfoundland and Labrador Labour Market Development Agreement.

The Premier and Minister of Fisheries and Aquaculture have, on a number of occasions, stated the Province�s willingness to participate in a cost-shared early retirement program for fishing industry participants.

Three-year budget $2,550,000

Funded by the Government of Newfoundland and Labrador

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