Strait of Belle Isle fishers sue union over payment plan for lost scallop grounds
CBC News | Posted: January 26, 2016 10:55 PM | Last Updated: January 26, 2016
Demanding money in lump sum, not over 30 years
Scallop harvesters have taken their union to court demanding a lump sum payment for lost fishing grounds in the Strait of Belle Isle.
Some fishing grounds were lost to make way for a subsea transmission cable to bring Muskrat Falls hydro power from Forteau Point, Labrador to Shoal Cove on the Great Northern Peninsula.
- Bringing Muskrat Falls power means drilling deeper than ever before
- The compensation deal from Nalcor for scallop harvesters in the Straits continues to stir controversy.
Fishers are being compensated by Nalcor, but how the money is to be paid out is the issue before the Supreme Court of Newfoundland and Labrador in St. John's.
A statement of claim by 71 of the 82 fishers covered by the deal argues the money should be paid out in a single installment.
The Fish, Food and Allied Workers Union wants to pay out the money over 30 years.
On the witness stand Tuesday, harvester Edmund Moores of Flowers Cove, said the union had no authority to hold back the money.
The statement of claim filed by Moores on behalf of the other plaintiffs also alleged that the union charged an "administrative" fee of $390,000 for negotiating the settlement and took that money out as a lump sum.
Now, the harvesters are looking for their money, plus interest, HST and damages.
Union defence
In its statement of defence, the union said it held meetings throughout Fishing Area 14 to consult with scallop harvesters and 91 per cent of them signed consent forms to allow the union to act on their behalf.
The union said it advised harvesters on Jan. 22, 2014 that the compensation fund of $2,590,875 would be paid out in installments following each fishing season over a period of 30 years.
According to the union, it was paid $338,631.25 as an administrative fee.
The union said under the agreement, compensation would be determined by the number of harvesters fishing for scallop each year, the total annual landings, the market price for scallop and the financial health of the compensation fund.
It acknowledged that Moores had asked for a lump sum payment, but said he was reminded of the terms of the agreement.
The Supreme Court trial is scheduled for four days.