Mainstream labour problems spread to Canada
Odd Grydeland
Since July, 2005 when Cermaq ASA purchased the Canadian company Heritage Salmon Ltd. and installed their new upper management team of Mainstream Canada from Chile in their head office in Campbell River, most of the Seawater Site and Hatchery Managers that used to work for Heritage have left the company. Some of the personnel previously in the position of Assistant Manager at these facilities have also left. Generally considered a blow to the fledgling salmon aquaculture industry in British Columbia, some of these managers or assistant managers will be leaving the industry all together, after having been considered the "best in the business" by industry insiders.
Blaming a poor working environment and a lack of appreciation for human values and work experience, managers with some 23 years experience at their facilities just up and left- some claiming "constructive dismissal", and seeking legal advice regarding compensation.
A delegation of Norwegian labour organizations visited the operations of both Mainstream and Marine Harvest in Chile last fall, reporting that while both companies were addressing labour and environmental issues better than most Chilean-owned companies, there was still a lot of room for improvement. The Norwegian government still owns 43.54 per cent of the outstanding shares in Cermaq, according to the latest company report.
While Mainstream maintains that it has experienced a general improvement in the biological and financial performance of its Canadian investments since the purchase of Heritage, figures released last month show a decline in sales volume for its Canadian operations of 17.3 per cent (5,100 tonnes) from 2006 to 2007. Revenue dropped from NOK 945.7 million (USD 181.9 mill) in 2006 to NOK 640.3 million (USD 123.1 mill), or 32.3 per cent in 2007. Lower prices for the finished product is the main cause, according to the last Cermaq quarterly report.
Likewise, earnings before interest and tax (EBIT) were down for the Canadian operations of Mainstream in 2007 compared with 2006. "Pre fair value EBIT" was down from NOK 372.8 million in 2006 (USD 71.7 mill) to NOK 103.1 million (USD 19.8 mill) in 2007. The last quarterly report blames this on the harvesting of fish from regions in B.C. with higher production costs, as well as the low price level for the finished product. Mainstream closed its contracted value-added facility in B.C. a year or so ago, throwing a number of skilled processing plant workers out of work.
