My name is Lana Payne and I work for the Fish, Food and Allied Workers Union, which is related to the Canadian Auto Workers. In this province we represent about 20,000 fishery workers in both the processing and harvesting sector of the industry.
I thought I'd start by giving you a brief snapshot of what our labour market looks like and the fishery's position in that labour market, as well as some problems we're having and some solutions to those.
In Newfoundland and Labrador we have a significant rural labour market, about 45% of which is located in rural areas, compared to about 81% as the Canadian average. According to HRDC, 31% of our labour force participants are employed in seasonal jobs. This is about double the national average. Of rural workers, 68% are employed part-year, compared to about 52% in the province. We have the highest percentage in any province of people employed in part-year work.
Two-thirds of the people employed in seasonal industries return to the same employer every year in our province, and these are industries that basically depend on the availability of a seasonal workforce, including agriculture, the fishery--which I represent--construction, and many others.
The Newfoundland and Labrador fishery in 1987 was worth about $615 million. By 2004 it was worth $1.2 billion. Last year it declined to $913 million, and this year we expect another decline. I'm going to tell you about why that is. One of the chief factors has been a strong Canadian dollar. When you have an export-based industry, as we do, it has given us a hard time. The markets haven't been doing us any favours either.
Last week the Bank of Canada basically concluded that our entire economy is having more trouble than it expected in adapting to a world of high commodity prices, a strong Canadian dollar, and global competition. Those would be the three factors that also influence what's happening in the fishery. I think we believe that the Canadian government has a responsibility and a role to play in how we adjust to those factors.
I won't talk a lot about the EI program, but I will say that it obviously plays a very, very important role in Canada's labour market as an income replacement tool, as well as how a lot of workers access training. Of course, we need improvement in those areas. In 2002, I would highlight that the monitoring and assessment report of the EI program noted that this program saved 71,000 jobs in 2001 and 2002. We would support the Canadian Labour Congress' improvements to EI, and I'm sure you'll hear about that at future hearings.
I'll skip through some of this because I only have seven minutes. I'm trying to talk as fast as my friends here.
To show the impact the Canadian dollar has had on crab, for example, which is the main, most valuable species in our province, if the Canadian dollar were the same this year as it was in 2004, it would mean an extra $70 million in the pockets of harvesters and fishing enterprises in our province, benefiting about 4,000 enterprises in hundreds of communities.
We've had a change in employment in the fishery since the moratorium. There is about a 13% to 15% decline in the number of people working in the harvesting sector, and nearly a 60% decline in the people employed in the processing sector. Of course, in the processing sector, a lot of women are employed, so it's largely their jobs that have been impacted by that.
Of our processing workers, 30% are over age 50. They have an average income of about $17,000 from all sources, which would include market income and employment insurance. In excess of 55% of them are women, and 64% have no high school. I'll repeat that: 64% have no high school.
In the harvesting sector, we have about 33% who are over age 50 and 22% of them are women. They have an average income of about $31,000 a year, and 59% of them have no high school. It makes retraining a very difficult proposition when you're old and don't have a high school education.
There's been a dramatic, I would say, technological impact on both sectors.
In the processing part of the industry, this has made the plants more productive by two minutes, but there's been less labour. It's much less labour intensive, which means there has been less work for the workers.
Part of this, in addition to the Canadian dollar, would be a hangover from the groundfish collapse of the 1990s. The adjustment program ended, but the problems did not. Some fish companies adapted by putting foreign fish in their plants. Because of the Canadian dollar, it's not possible to do that anymore. Many of them are experiencing the moratorium today.
An evaluation of the TAGS program in 1998 mentioned that clients and their industries and communities face enormous adjustment problems that will take decades to address. We're still going through that.
We would suggest that you can't retrain everybody. As important as retraining and literacy programs are, it's not an option for everybody in the labour market given the circumstances. If you have little education, you're an older worker, you have limited transferable skills, you have a really significant attachment to your community, you live in areas of high unemployment, you're a woman, or you have huge family and elder care responsibilities, this makes moving very difficult. We're basically asking people to give up what it has taken a lifetime for them to build.
Our fishery needs somewhat of a revitalization to happen. That means, when it happens, you need rationalization. I think this would help in terms of increasing the stability and duration of employment for those people who are able to stay. There would be less dependence on EI. Of course, some kind of retirement program is needed, an adjustment program for the people who need to get out.
I think we need a reality check when it comes to some of these industries, particularly the fishery. We've gone through two decades of serious restructuring, with lean and mean changes in many of these workplaces.
These workers are frankly worn out. Many of them suffer from arthritis or bad backs and take medication to get through the day. A lot of them are 58-year-old and 60-year-old women who have been doing this for three decades, working on concrete floors with their hands in cold water, and they just can't do it anymore. Retraining them for something in another part of the country is quite frankly not a solution.
That's not to say we don't need retraining for others. I think we have to look at the circumstances that people are in. We have to be flexible.
I would also argue that, of course, we need to pay attention to child care for those who remain in the workforce.
The 2006 budget did at least highlight that we have a problem with older workers. The government will conduct a feasibility study in partnership with provinces and territories to evaluate current and potential measures to address the challenges faced by displaced older workers, including the need for improved training and enhanced income support, such as early retirement benefits. We need to get on with that.
The program that was announced last week on the targeted initiative for older workers is not a retirement program. It won't solve the problem. There's not enough money, and the usual.
In conclusion, Canada has a diverse labour market. Not everybody can live in Alberta, and we should do what we can to support people in the communities where they live.