Snow crab standoff continues in Newfoundland

The Association of Seafood Producers and the Fish, Food, and Allied Workers continue to do battle over snow crab pricing in Newfoundland, Canada.

A six-week battle between the trade group representing snow crab processors and the union representing harvesters has stalemated, with recriminations rampant and no solutions emerging from several rounds of negotiations.

The ASP has remained steadfast in its refusal to budge from the current minimum CAD 2.20 (USD 1.63, EUR 1.49) per-pound  price set by the Standard Fish Price-Setting Panel in April. Calling that price unfeasible, the FFAW initiated a strike in early May, which continued through Thursday, 18 May.

“This tie-up has become about more than just about a minimum price of CAD 2.20 per pound, it’s about the stranglehold these companies have on our province,” FFAW-Unifor President Greg Pretty said on 17 May.

Pretty called the ASP a “cartel” and accused it of “completely stifling competition and resulting in the industry shut down this spring.”

“FFAW-Unifor is calling for a complete overhaul of the province’s processing industry, starting with immediately allowing outside buyers for all species. The FFAW-Unifor Snow Crab Bargaining Committee has agreed to sign off to start a crab fishery at the current minimum price on the condition that the provincial government immediately allow outside buyers and permit harvesters to truck-out their own product for all species without restrictions,” Pretty said.

Cracks have emerged in the unified front initially presented by FFAW-aligned harvesters, with several boats heading out to fish this week, according to the CBC.

"It's time to get stuff on the go, you know? I know it's CAD 2.20 a pound, it's not a lot of money, but people gotta make a living," fisherman Justin Giles told the CBC. "That's my opinion on it. Few dollars is better than no dollars, at the end of the day."

FFAW accused ASP of offering individual harvesters prices “well above this minimum in an attempt to break solidarity.” In a 17 May response, ASP said FFAW was using unfair tactics to force its fishers to stay the docks.

“There are many harvesters who are geared-up and ready to go fishing but they are fearful to do so,” it said. “The bullying and intimidation tactics being employed by the FFAW against harvesters who want to fish and plant workers who are ready to process the crab is unacceptable. We will stand up for plant workers, harvesters, and producers. It is time for the FFAW to be held accountable for stopping people from working.”

FFAW said its final offer to ASP was a starting price of CAD 2.30 (USD 1.70, EUR 1.58) per pound with incremental adjustments through the season as expected demand and market price rises occur. It said ASP rejected the offer.

ASP said the harvester share of the current market price at the minimum price of CAD 2.20 is 54 percent.

“ASP has informed the FFAW repeatedly of this reality, as well our position that we are open to an increasing share of the market price if the market rebounds, which remains very uncertain at this time. However, the FFAW has continued to misinform its membership of the facts while playing games with the livelihoods of those working in the industry,” ASP said in a press statement. “It is time for the FFAW to realize that this is a market problem, and we need to get this fishery going to avoid long-term economic fallout for the province.”

ASP said the strike was harming the entire province’s economy.

“Every day that the snow crab fishery is at a standstill, it is having a devasting impact on the thousands of people who directly and indirectly earn their livelihoods from the fishery. From harvesters to plant workers, to truck drivers and dockside monitors and other suppliers and support services, there is enormous stress and economic strain being placed on the province’s rural, coastal communities,” it said.

Both sides appealed to Newfoundland and Labrador Premier Andrew Furey to intervene in the dispute. Furey involved himself in negotiations beginning 16 May, but has not yet achieved a breakthrough.

The FFAW, which said 70 percent of its fishers said they will not fish at the current offered rate, has called for Furey to allow more competition into the province.

“We know that [the] request will be concerning for many of our plant workers, and this decision was not taken lightly. However, it’s imperative that healthy competition be reintroduced into this industry for the protection of all fishery workers, plant workers included,” Pretty said. “We also know that there are thousands of individuals who have run out of employment insurance benefits, and putting food on the table is an immediate and serious concern. We can get a fishery going tomorrow if Premier Furey takes the necessary leadership required.”

But the ASP said allowing outside buyers to take Newfoundland snow crab might result in layoffs at local factories.

With the fishery’s season slipping by, FFAW said there’s still enough time to strike a deal and get enough crab caught to make the season worthwhile.

“There is still time for ASP to accept the committee’s offer and get a fishery going. There is still time for the province to intervene and pressure companies into ethical behavior through healthy competition,” it said. “We know the pressure is on. We know our members are in a very difficult spot. We promise, we are doing everything possible to get a fishery going for harvesters and plant workers, and all those who rely on the fishery for their livelihood.”

Photo courtesy of Government of Canada