FFAW members beat union in court battle over scallop compensation fund
CBC News | Posted: March 2, 2016 6:00 PM | Last Updated: March 2, 2016
The Supreme court of Newfoundland and Labrador has ruled in favour of scallop fishermen who took on their union over a compensation fund for lost fishing grounds in the Strait of Belle Isle.
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"Elated would be, I guess, an understatement," said Dave Goodland, a lawyer who represented the fishermen who challenged the union. "They feel vindicated by the decision."
Goodland said each fisherman should get about $34,000 and the money should be disbursed within 30 days, unless the FFAW decides to appeal.
"There's relief, vindication and happiness. Now they get the money that they deserve, coupled with the fact they get to keep their licences to fish scallops."
Keith Sullivan, president of the Fish, Food and Allied Workers Union, said that active harvesters are "disappointed" with the ruling, but the union wants to study the decision before commenting further.
He maintained that the compensation fund negotiated with Nalcor was a "landmark," and a good deal for harvesters who had to give up scallop grounds in Area 14, off of the Great Northern Peninsula and southern Labrador.
Nalcor agreed in 2014 to pay out $2.6 million to keep fishermen away from an undersea cable that was needed to bring Muskrat Falls power to the island.
The lawsuit was brought by 71 fishermen who argued the money should be shared through lump sum payments among everyone who held a scallop licence.
The union argued that the money should be paid out over 30 years, to active fishers who can demonstrate annual losses.
Judge's ruling
At trial, it was clear that the union had sent draft proposals to Nalcor in August and September of 2012, but didn't ask fishermen for permission to negotiate until May 2013.
In other words, fishermen thought negotiations with Nalcor hadn't yet started when, in fact, they had all but concluded.
"The uncontradicted evidence of the fishers is that they were not told of the negotiated draft nor the Agreement," said Justice Carl Thompson in his decision Tuesday.
"I am satisfied on the evidence that the proposals by the FFAW to Nalcor were not made known to the fishers."
Thompson concluded that the union failed in its responsibilities to the fishermen.
He ordered the FFAW pay each scallop licence holder a lump sum, and cover a portion of court costs.