Company Cartel Continues: ASP Refuses Release of Deloitte Calculation Ahead of Arbitration

FFAW-Unifor is calling on the Association of Seafood Producers (ASP) to stop hiding behind excuses and immediately agree to release the full Deloitte crab price calculation, including all sales of 5–8 oz sections, ahead of next month’s arbitration on the snow crab rebate.

“Ocean Choice International (OCI), Quinsea, Royal Greenland, Beothic Fish Processors, Quinlan Brothers and Barry Group International are responsible for creating a corrupt system of provincial market control and price fixing. Despite claiming to support increased transparency a few days ago in front of Premier Wakeham, the ASP oligopoly is the tiger that will never change its stripes,” says FFAW-Unifor President Dwan Street.
“It’s certainly no surprise to us that ASP and their member companies are refusing to take the ethical and honest approach to resolving this crisis. Their actions are a clear signal that Premier Wakeham must take a hard approach to address ASP’s continued market control and the lack competition,” Street says.

Processors Blocking Transparency

ASP has notified the Provincial Government it will not agree to release Deloitte’s full calculation in advance of the February 4-5 arbitration. Deloitte has already completed this calculation, but it is being withheld pending the outcome of the hearing. Despite Premier Wakeham’s direction that ASP communicate its position directly to FFAW-Unifor by Wednesday, ASP instead chose to inform government on Friday, further delaying transparency and avoiding direct accountability to harvesters.

The current 28-cent settlement is based only on sales of 5–8 oz sections packed in 30 lb boxes, despite clear direction that all 5–8 oz sales are to be used.

When FFAW-Unifor met this week with Premier Tony Wakeham, Ministers O’Driscoll and Goosney, and ASP representatives, processors repeatedly claimed they support greater transparency in the industry. Refusing to release the full Deloitte calculation now is the opposite of transparency and continues to undermine harvesters’ trust in the provincial pricing system.

Panel Decision Is Being Undermined

The Standing Fish Price-Setting Panel decision and the union’s submission state that all receipts for 5–8 oz sections are to be used, regardless of destination and packaging format. Nowhere in the decision is there any mention that only 30 lb boxes should be used; that limitation was introduced after the fact and is being used as a delay tactic to hold onto money owed to harvesters. At the upcoming arbitration, FFAW-Unifor will argue that the arbitrator must uphold the original Panel decision that ALL sales of 5–8 oz sections be included in the settlement calculation.

ASP has suggested that including other pack sizes could be “deceiving,” but the numbers do not support that claim. Information shared with the union shows that sales of other pack sizes make up just 7.8 percent of the total audited volume, meaning that even if those formats sell at higher prices, they will still only contribute 7.8 percent to the final settlement price, which continues to be driven by 30lb box sales.

Harvesters Deserve Straight Answers

Processors have also argued that other pack sizes cost more to produce because of added labour, packaging, and shipping costs, yet they continue to produce those formats in significant volumes. If these sales were not financially worthwhile, companies would not be shifting product into higher-value packs targeted at premium markets. Harvesters are simply asking that all of those sales be counted fairly in the rebate they were promised, regardless of where the crab is sold or how it is packed.

Call for Competition and Government Action

FFAW-Unifor warns that the ongoing concentration of processing power in the hands of a few large companies is leaving harvesters hostage to decisions made in closed boardrooms. The union is again calling for real competition in Newfoundland and Labrador’s processing sector, including new entrants who are prepared to operate under clear, enforceable pricing rules.

The Union is urging Premier Wakeham and Minister O’Driscoll to immediately deliver on their commitment that “you build it, you’ll get it” when it comes to processing licences, and to use every tool available to ensure ASP releases the full Deloitte calculation before the arbitration.

Not Standing Down

“ASP and their member companies are once again showing their true colours by refusing to be transparent and honest. This should be a glaring indication to Premier Wakeham that the cartel of processing companies will never do the right thing on their own. Stronger policy and regulations are essential to giving harvesters the competition and fairness they are rightly owed, and our members will not stand down until that has been achieved,” concludes Street.