FFAW applauds new deal on crab pricing, but says system still needs fixing

The province's snow crab season looks like it will finally begin after the bargaining groups for fish harvesters and seafood producers agreed to a formula on pricing. (Submitted by FFAW - image credit)
The province's snow crab season looks like it will finally begin after the bargaining groups for fish harvesters and seafood producers agreed to a formula on pricing. (Submitted by FFAW - image credit)

The head of the Newfoundland and Labrador's fisheries union says a deal struck on Sunday evening brings stability for crab harvesters this season, but believes the process has to be overhauled to prevent more disruption in the future.

Fish, Food & Allied Workers president Greg Pretty says it's time to end the final offer selection process, in which harvesters and producers each put forward a proposal, and an independent panel has to select one or the other without compromise.

Harvesters refused to fish for more than a week, until the FFAW and Association of Seafood Producers reached a deal on Sunday that included increases to minimum prices and a settlement at the end of the season. That deal will override the panel's decision.

The situation was even worse in 2023, with harvesters remaining tied up for six weeks.

"The problem with it so far, of course, is that for the last two years the panel chose a price that couldn't in fact get the fishery going," Pretty told The St. John's Morning Show on Monday. "So that's not much use if that trend, or that model continues."

The deal struck on Sunday includes a floor price of $3 per pound for the entire 2024 season. Both sides will be able to file for a reconsideration if the market price goes above $6.50 USD.

It also comes with the promise of an independent review of actual crab sales after the end of the season, which could prompt settlement payments to harvesters if the market has gone up. Both sides settled on a 38.5 per cent market share for harvesters if settlements are warranted.

"That's important because it evens the playing field here," Pretty said of the deal. "You don't have to rush out, for example, this week. There's a $3 minimum there and even if you fish later in the year you'll capture the benefits of the market. That's why it's different. That's why it's historic."

The deal is good for one season only, but the fisheries union hopes it sets a path moving forward.

The $3 floor price is a 15 per cent raise over the $2.60 chosen by the panel earlier this month. It's also a vast improvement on the $2.20 price harvesters fished for at the start of last season.

Pretty said both sides were close to a deal throughout last week, but didn't get anything across the finish line until Sunday evening. He said the provincial labour department was involved with a mediator, and the premier's office "had a lens" later in the negotiations.

If a deal hadn't been struck, the FFAW was preparing for more protests outside Confederation Building in St. John's. Harvesters were expected to be there on Monday morning, but stood down after Sunday's deal.

Pretty hopes to see changes to the process to avoid another mess next year. In the meantime, he said harvesters will have crab pots in the water in the coming days.

"As of today, there's a fair amount of stability that wasn't there yesterday," Pretty said.

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