Crab tie-up means plant workers turn to income support, says Opposition critic

Newfoundland and Labrador's lucrative snow crab season opened days ago, but harvesters haven't headed to the water due to a deadlock on the pricing formula, which has fish plant workers applying for relief, says the Progressive Conservative fisheries critic.

After weeks of protesting, including shutting down Confederation Building, fish harvesters scored big with concessions on who they could sell their catches to.

But the situation soured soon after, when the new crab price formula was revealed.

According to a communications representative for the Association of Seafood Producers, Sara Norris, the harvester share is between 53.9 per cent and 56.9 per cent and, as the market price increases, so does the price paid to harvesters. There also isn't a cap on the price paid to harvesters.

Once the market reaches above $8, harvesters maintain a margin of 56.9 per cent and as price continues to increase this percentage remains the same.

But harvesters are refusing to go out on the water with the current formula.

Bonavista MHA Craig Pardy called the situation unfortunate and said he'd hoped to avoid a repeat of last year, when there was a six-week delay to the start of the season.

"We got 450 employees at the plant in Bonavista. Many of them — after going through last year with the delay in the season [and] a new change in the formula for EI — have been short on their EI benefits," he told CBC News.

Pardy said he's heard that more than 50 Bonavista plant workers have had their EI support elapse and are now without income.

"Some of those have gone to the office to look at income support. and that's where we are. So how critical is it that we get this fishery started? It is critical," said Pardy. "The health and welfare and the livelihoods of many are on the line."

More than 180 people in trouble

The problem is something the Fish, Food & Allied Workers union said it has been trying to bring to the attention of the Newfoundland and Labrador government for months.

In an open letter dated April 5, FFAW president Greg Pretty told Gerry Byrne, the minister of immigration, population growth and skills, that recent changes to EI have hurt plant workers in recent months.

In November, the federal fall fiscal update noted regional unemployment rates were down, resulting in a reduction of EI benefits for some. The federal government said it was adding four additional weeks of regular benefits in certain economic zones, including Newfoundland and Labrador.

On top of adjustments in the number of weeks payable for regular benefits, workers now have to reach a minimum of 490 hours worked to qualify, instead of the previous 420. Their benefits are based on their best 16 weeks of work, as opposed to the previous standard of 14.

At the time, Pretty raised concerns over how the decision would affect seasonal plant workers, estimating they'd be out hundreds of dollars a month.

In Pretty's recent letter, he said claimants got up to $400 less in benefits over the winter and their claims ran out four to six weeks before the 2024 season.

"While our union is working very hard to ensure an orderly and timely fishery in 2024, many processing plant workers have been without income for almost four weeks (an income loss that cannot be recovered), and have no other choice but to avail on social assistance," he wrote.

More than 180 unionized plant workers have contacted the union about the growing income gap, he said.

"For clarity, we are seeking programming that will allow these plant workers to receive economic support to stabilize the workforce and promote retention to prevent people from experiencing poverty," wrote Pretty.

He's calling for a meeting with Byrne to discuss what economic support programs are available to help impacted workers.

CBC News asked the FFAW for comment but did not hear back by publication time.

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