Union Wants Licence Fees Eliminated and EI Program Improved

1/21/2009

Elimination of fishing licence fees, improvements to the Employment Insurance program, inventory financing, and funding for fleet rationalization and early retirement are measures that the FFAW/CAW has recommended be included in next week’s Federal Budget. Union President Earle McCurdy made the recommendations in a letter to Finance Minister Jim Flaherty, in which he noted the fishing industry’s reliance on exports and the restaurant trade, both jeopardized by the global economic crisis. "The overwhelming consensus of economists is that the Government of Canada needs to implement a massive economic stimulus to counteract the global recession, " Mr. McCurdy said. "Canada’s fishing industry is as vulnerable as other traditional export industries in the current climate." He noted that the elimination of onerous licence fees would be an effective way for Ottawa to leave money in the pockets of fish harvesters. He also supported improvements to the E.I. program proposed earlier by CAW National President Ken Lewenza, including a reduction in the number of qualifying hours to 360, increased benefit duration, elimination of the two week waiting period, increase in the benefit rate to at least 60% of earnings, and calculation of E.I. benefit rate based on the claimant’s 12 best insurable weeks. Noting the fishery’s dependence on operating lines of credit from financial institutions, Mr. McCurdy said there is a real risk in the current environment that credit restrictions could jeopardize the operations of this year’s fishery. "A contingency plan to provide inventory financing if necessary would help prevent distress selling which could otherwise render the 2009 fishery unviable," Mr. McCurdy proposed. He also repeated earlier calls to the federal government to accept the offer of the Government of Newfoundland and Labrador for cost-shared fleet rationalization and early retirement programs. "The federal government announced a fishing licence combining policy and then passed the bill to the harvesting sector. They should join the province and harvesters in a cost-shared, voluntary fleet reduction program that will pave the way for a viable future fishery." To read a copy of Mr. McCurdy’s letter to Mr. Flaherty click here. To read the letter sent by CAW President Ken Lewenza on improvements to E.I. click here.

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