Seafood producers confident in court challenge against N.L. government, fisheries union

The Association of Seafood Producers had its first day in court on Wednesday, challenging the Newfoundland and Labrador government and fisheries union over what it calls "political interference" during price setting negotiations ahead of the snow crab season.

The court challenge was prompted when Fisheries Minister Gerry Byrne moved the price setting deadline to April 13, following a request from the Fish, Food and Allied Workers union. The ASP says Byrne acted contrary to the Fishing Industry Collective Bargaining Act and turned to the Supreme Court of Newfoundland and Labrador to quash the date change.

"If the minister's decision is quashed, and we expect it to be because he broke the law, then we're in the situation where we don't have a minister's date," ASP executive director Jeff Loder told reporters outside of the court house on Wednesday.

"The Supreme Court can't direct a panel date or can't direct, necessarily, a minister's date. So this is the chaos that's created when you have interference in a process."

Wednesday's court appearance was focused on the Fishing Industry Collective Bargaining Act and whether or not the minister can change the date without input from both the FFAW and ASP.

Justice Alexander MacDonald said he will have a decision next week.

'Wasted time'

FFAW lawyer Ray Critch called the court challenge a waste of time, money and energy. He says the minister can move the date without input from both sides.

"We think the legislation is fairly clear that he does have authority and more importantly, as a practical reality, the minister has to be able to adjust the date when there are emergency circumstances like a significant linchpin negotiator falling ill," he said.

Snow crab is Newfoundland and Labrador's largest and most lucrative fishery, said Critch, and that price negotiations will continue. He says he's ready for a panel meeting on Sunday or Monday.

If the decision for date setting is in the minister's hands, Critch said that will prevent one party from being able to "hijack" the process.

Tariff troubles

Another looming problem over the price setting negotiations has been U.S. President Donald Trump, his threats of tariffs and the ambiguity over what products could be impacted.

Loder says there has to be a mechanism to deal with tariffs and the ASP was proposing two prices, depending on whether tariffs are enacted.

Later on Wednesday, Trump revealed the countries he was targeting in his expanding trade war, which did not include Canada. There are also exceptions for importers who can prove the products they're bringing in from Canada are compliant with the U.S.-Canada-Mexico Agreement.

"After today, ASP's position will change whether there are tariffs or not — how we deal with tariffs has to be into the collective agreement or I will not be signing it," said Loder ahead of Trump's announcement.

Critch said one problem with the on-again-off-again tariff threats is the uncertainty of how the market will absolve the new costs. He said consumers, distributors, processors and FFAW members will likely bear some of those costs.

"Our position is there has to be some accounting for tariffs and we're building that into our proposal as well. But how those tariffs play out, nobody knows yet," said Critch.

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