Monday, January 08, 2024

Flawed snow crab price-setting system needs overhaul soon, FFAW says

CBC
Fri, January 5, 2024 

Fish, Food & Allied Workers president Greg Pretty says his union's members can't afford to fish crab for just $2.20 a pound. 
(Patrick Butler/Radio-Canada - image credit)

Fish, Food & Allied Workers president Greg Pretty says a formula-based pricing system needs to be in place before prices are set for the 2024 season. A report released in November recommended a formula be in place by the end of January. (Patrick Butler/Radio-Canada)

The president of the Fish, Food & Allied Workers union says time is ticking on getting a new formula-based seafood pricing system in place ahead of the 2024 season.

A November report from the province's three-person fish price-setting team submitted to the provincial government said the current seafood price-setting process is flawed and changes need to be made to avoid another tie-up that halted the snow crab industry for six weeks last season.

The report offered nine recommendations, including that a formula-based pricing system be implemented by the end of January.

FFAW president Greg Pretty said that process is underway.

"We have that report now, and both parties are working toward a formula, market-priced formula for 2024," he told CBC News on Thursday.

The price of snow crab sat at $2.60 per pound at the end of last season, up from $2.20 per pound at the beginning of the season.

Pretty said snow crab dropped by about 30 cents per pound in December but has since stabilized. The volatility shows why a formula-based is so necessary, he said.

"When the market is low like it is now, it's extremely important that the shares of the market price are fair and equitable," he said.

"Hopefully that price starts to rise a little bit. But it's not perfect by any stretch of the imagination — but again, what we're talking about here in this formula is shared risk. If we can establish that and move forward, that's the key for us."


The processing line has been activated and snow crab is once again being produced at the Quilan Bros. Limited seafood plant in Bay de Verde. Snow crab was at the centre of controversy last season and played a large role in calls for a formula-based pricing model. (Terry Roberts/CBC)

The Association of Seafood Producers, who were at odds with the FFAW during the tie-up last season, is also part of formula negotiations.

As negotiations on collective bargaining and the pricing formula continue, Pretty said, he hopes all parties will move forward smoothly — but added that working with the ASP is "the nature of the beast."

"The formula works, no question about that. So the biggest challenge here is that we're dealing with ASP," he said.

"They're not great at sharing, I understand that, but there's been so much emphasis put on this fishery and rural Newfoundland because of 2023. You know, all parties including the provincial government are hopeful here that we can set on a new path."

Requests by CBC News for an interview with the Association of Seafood Producers were declined.

Meanwhile, Pretty says there are other issues that need to be addressed ahead of the season, like improving employment insurance. Some workers failed to qualify for EI because of the six-week holdout.

"We were promised that something would happen here positively for our members, whether it be harvesters or plant workers, on the EI situation. We were promised that, and all they could come up with was the four weeks [extension]. Well, that's not good enough," he said.

Pretty also said the FFAW will have a leadership election in 2024 but wouldn't say whether he will run for re-election.

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