Staring down $100M loss from 2022, ASP pledges to work with FFAW for upcoming season

Two fisheries groups are setting aside their combative history to work together this snow crab season.

The Fish, Food & Allied Workers unionand the Association of Seafood Producers have long butted heads over issues related to the fishing industrybut say they're facing historic challenges this season and want to avoid any problems from the outset.

The groups held a news conference Thursday morning in St. John's, where they discussed plans for the 2023 season.

"In light of the challenges we are facing this year, we have agreed that our best approach is to collectively discuss the challenges the crab fishery is facing and to seek support from both levels of government to ensure that we have a successful crab fishery in 2023," said Paul Grant, boardchair of ASP.

His comments were echoed by Greg Pretty, the newly elected president of the FFAW.

"Working together to address issues like pricing, schedulingand trip limits prior the start of the fishery is the best route to protect fish harvesters and plant workers in Newfoundland and Labrador. With a commitment from stakeholders to abide by the Collective Bargaining Act this year and important strides towards increased transparency, this is currently the best option for our members to avoid a repeat of 2022."

Grant said Newfoundland and Labrador crab processors expect to have lost at least $100 million from last season.

Quotas were increased by 32per cent heading intothe 2022 season, and the season began with a record-high price of $7.60 per pound.

The seafood producers sounded the alarm in late May,saying the market went cold in the United States and they were suffering losses. Former ASP executive director Derek Butler said most of the crab they were processing was sitting in cold storageand they would have to limit production.

Grant said they're still trying to nail down how much hasn't been sold from last seasonbut acknowledged some estimates say 30 per cent remains in storage.

He said that's because consumer behaviours have changed and people are splurging less, which means fewer people buying crab. The hot market from the early pandemic days has ended.

"That money now has disappeared," Grant said. "And we now have a recession in the U.S., or what appears to be a recession in the U.S., so the prices are falling because demand is falling."

'We have to be more strategic'

The FFAW and ASP will begin talks on Monday, with an agreement to look at several issues affecting the industry, both monetary and non-monetary.

Pretty said one goal is to come up with a formula for pricing, and only rely on the price-setting panel "in all its glory" if talks fall apart.

Pretty said the union consulted its inshore council on the matter and was "confident that this is currently the best solution for both harvesters and plant workers, as well as the companies."

While the two sides have often sniped and barbed at each other in the past, they hope to build a relationship that's less adversarial and more beneficial to everyone.

"For God's sake, this is not a NASCAR situation where the flag goes down and we throw it all up on the wharf," Pretty said. "We have to be more strategic in the biggest crab fishery in the world. We need collaboration on that, and I hope we get it. It's that important."

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