CRAB PANEL HEARING: FINAL OFFERS SUBMITTED

The Panel hearing on crab began at 10 AM this morning and submissions were exchanged at 4 PM yesterday.

Panel rules dictate that positions could not be released until the beginning of the hearing.

Finding a pricing structure that works has taken time. In the terrible year that was 2023, we saw pricing increments based on the Urner Barry price. We saw some marginal increases in price that year, but no settlement arrangement at the end of the year.

Last year, after losing at the Panel, we negotiated a deal with ASP that set the price for the season at $3 and a settlement at the end of the season based on 38.5% share to harvesters of the actual sales of 5-8 oz sections to Boston (referred to as FOB Boston). That was an improvement from 2023, because we got pricing based on receipts – something we had been seeking for years, however we were limited by FOB Boston because we didn’t see receipts for sales to any other markets. We were also stuck at 38.5% as a share to harvesters. That share was low compared to our historic share, and it also didn’t increase as the market price increased, which is also how pricing has worked in the past: as the market price increases, harvesters tend to receive a greater share of the market. 

FINAL OFFERS

This year, in preparing for negotiations, the Negotiating Committee developed a pricing structure and a strategy and stuck to it. Our proposal is reasonable, supported by historic market share paid to harvesters, is equitable among harvesters, acknowledges the risks on both sides of the industry, and promotes the fair sharing of the money that comes back to this province from the sale of our resource. That plan, which forms our final offer being presented to the Panel this morning includes the following elements:

A start price of $4.97 for the season. This means that if harvesters in St. Anthony are delayed because of ice, they’re going to get the same price as a harvester in St. John’s who can set pots later this week. This matters because weather and other factors, like scheduling, means that some harvesters are disproportionately affected by fluctuations in price throughout the season due to factors beyond their control. 

ASP is offering a start price of $4.50, and once Urner Barry beings quoting NL crab, then the price to harvesters would be adjusted on a weekly basis. The $3.75 that was paid last year was 45% of the receipt price as determined by the third-party auditor. Their current offer of $4.50 is just 36% of the market price that ASP themselves are using and is significantly below the share they paid last year, despite the market being higher. 

SETTLEMENT ARRANGEMENT

The Negotiating Committee proposed settlement arrangement that is based on all receipts for sales of 5-8 oz sections, with a sliding scale that ranges from 40-48% (percent share to harvesters increases as market price increases), and includes sales receipts up to Oct 31 (as compared to last years agreement which included receipts for only three weeks after the season closure). Another improvement this year is that crewmembers will be paid directly from the processor.  These are insurable earnings and your claim can be adjusted. 

ASP is also offering a settlement arrangement, but with a much lower percent share to harvesters (39 – 41.6%) and a receipt period that ends three weeks after the season closes, meaning that you could be missing market increases in the fall. 

More details will be provided over the coming days, and the decision of the Panel will be made available as soon as possible. 

Thanks to our 2025 crab negotiating committee who volunteered countless hours over the last two and a half months: 

Alton Rumbolt – 2J
Darren Boland – 4R
Brad Patey – 3K inshore
Glen Newbury – 3K inshore
Wayne Hicks – 3K inshore
Chad Payne – 3K offshore
Eldred Woodford – 3K offshore
Larry Roche – 3L inshore
Chad Waterman – 3L inshore
John Efford – 3L offshore
Glen Winslow – 3L offshore
Nelson Bussey – 3L offshore
Kenny Viscount – 3Ps
Lee Melindy – Crewmember
Jason Sullivan – VP Inshore
With: Dwan Street, Jason Spingle, Sherry Glynn, Ray Critch, Onye Oluoha