ACKNOWLEDGEMENTS
Food Processing Skills Canada wishes to express sincere appreciation to the hundreds of firms and individuals who contributed directly and indirectly to this report and in particular to the members of the Advisory Committee who were instrumental in the planning, development, and validation of the study.
| INDUSTRY | |
| Joanne Losier | Cape Bald Packers Ltd (NB) |
| Bob Sleva | Connors Bros. Clover Leaf Seafoods Company (NB) |
| Simon Jarding | Quin-Sea Fisheries – Royal Greenland A/S (NL) |
| Osborne Burke | Victoria Co-operative Fisheries Limited (NS) |
| Adlai Cunningham | Sea Star Seafoods (NS) |
| Paula Kieley | Ocean Choice International (NL) |
| Lynn Rayner | Acadian Supreme Inc. (PE) |
| Pam Perrot | Beach Point Processing Company (PE) |
| UNION | |
| Derek Johnstone | United Food and Commercial Workers (ON) |
| PARTNERS | |
| Heather Manuel | Fisheries and Marine Institute of Memorial University (NL) |
| Ray Hayter | Fisheries and Marine Institute of Memorial University (NL) |
| Gerald (Jerry) Amirault | Lobster Processors of New Brunswick and Nova Scotia (NS) |
| Liza Fitzgerald | Nova Scotia Fisheries Sector Council (NS) |
| GOVERNMENT | |
| Philippe Massé | Employment and Social Development Canada (HQ) |
| Benoit Tessier | Employment and Social Development Canada (HQ) |
| Shelly Binch | Immigration, Refugees and Citizenship Canada (HQ) |
| Corinne Prince-St-Amand | Employment and Social Development Canada (HQ) |
Special acknowledgments are extended to the consulting team who undertook the research, surveys, site visits, translation, and report writing.
EXECUTIVE SUMMARY
Canada was built on fishing and trapping. Today, fish and seafood processing continues to play a vital role in the lives of many rural and remote Atlantic Canadian communities. The industry employs 15,670 workers and boasts $3.9 billion in annual exports. It also enjoys a worldwide reputation for quality.
however, employers in the fish and seafood processing sector have been suffering acute labour shortages for years. As this study concludes, the situation is projected to worsen under status quo conditions. In 2017, 1,800 job vacancies went unfilled due to the lack of available workers in regions where processing plants are located, and an additional 2,500 workers will be needed over the next five years to replace retirees (7,500 by 2030). Unfortunately, this recruitment need will be occurring within the context of very tight regional labour markets that are currently experiencing labour shortages during peak seasons and which are predicted to continue during this period.
Overall, the analysis indicated that of the 12 regions studied in-depth, were facing very tight labour markets where the current or projected demand for workers (total and lower skill level) from the regional industries was higher than the existing local labour market (see table below).
Special acknowledgments are extended to the consulting team who undertook the research, surveys, site visits, translation, and report writing.
| Region | Total Labour Force | Lower Skill-Level Labour Force | ||||
|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2018 | 2019 | 2020 | |
| Very tight (average and peak season) | ||||||
| Old Perlican, NL | 3 | 3 | 3 | 3 | 3 | 3 |
| Clare, NS | 3 | 3 | 3 | 3 | 3 | 3 |
| Charlotte, NB | 3 | 3 | 3 | 3 | 3 | 3 |
| Lunenburg, NS | 3 | 3 | 3 | 3 | 3 | 3 |
| Richmond, NS | 3 | 3 | 3 | 3 | 3 | 3 |
| Burin Peninsula, NL | 2 | 2 | 3 | 3 | 3 | 3 |
| New Bandon-Caraquet, NB | 2 | 2 | 2 | 3 | 3 | 3 |
| Prince, PE | 2 | 2 | 2 | 3 | 3 | 2 |
| Very tight (average and peak season) | ||||||
| Kings, PE | 2 | 2 | 2 | 3 | 2 | 2 |
| Pictou, NS | 1 | 1 | 2 | 3 | 3 | 3 |
| Cornerbrook, NL | 1 | 1 | 2 | 2 | 2 | 2 |
| Kent-Westmorland, NB | 1 | 1 | 1 | 2 | 2 | 2 |
1 = Regional labour force meets seafood processing employment demand at annual average and peak employment levels
2 = Regional labour force meets seafood processing employment demand at annual average levels only
3 = Regional labour force does not meet seafood processing employment at annual average or peak levels
This report, which was prepared by Food Processing Skills Canada (FPSC) in partnership with industry, federal and provincial governments and funded by employment and Social development Canada, synthesizes the findings from several complementary study components, including: 12 regional community profiles, f ield visits, a large survey of employers and interviews with more than 140 plant workers, managers, immigrant agencies, Indigenous groups and community leaders. The study identifies chief regional concerns, provides access to data sources, validates assumptions and outlines promising practices and solutions for addressing hR challenges and contribute to a sustainable workforce.
Securing the future of the fish and seafood processing industry in Atlantic Canada is a large and complicated endeavour that requires a high degree of coordination among a wide array of stakeholders. The results of the study are sobering, but also offer reason for optimism.
THE CURRENT SITUATION
To gain a deeper understanding of the various occupations within the fish and seafood processing sector, job descriptions and organizational charts were analyzed. Occupations consist of six main levels ranging from foundational through to senior executive leadership roles. Four out of the six occupational categories require no post-secondary training or education, which presents both opportunities and challenges for the sector. Some key observations include:
- the significant impact of unionization on the division of labour;
- the size of the facility has an impact on distinctions and differences between occupations;
- the physical requirements for many of the positions; and • the differing skill requirements between fish and seafood processing.
As most jobs in the industry are at the foundational and intermediate levels, career progression is neither fast nor certain for new workers.
The reliance on international markets present both opportunities and challenges. Key determinants include the demand factors of the global and Canadian economic environment, exchange rates, international exports and demographics. These combine with supply factors such as fish quotas, aquaculture production and fish/seafood landings. The net result often produces a rapidly fluctuating demand for products, which can be difficult to respond to within a very tight labour market.
Canada lags behind in both R&d and technology implementation in the global seafood processing sector. To remain competitive in international markets for seafood products, advanced technological implementation developed specifically for Canadian firms is required. barriers to greater technology adoption include a lack of interest in the industry from Canada’s tech sector, industry uncertainty and seasonality. It is important to note that the species-specific nature of processing plants mean it makes it difficult, if not impossible, for employers to shift production based on sudden supply or demand for a product (e.g., moving from shellfish to fish processing).
Other challenges facing the sector include a decreasing supply of lower-skilled, production-level workers due to rising levels of education among youth. Working conditions, the physical nature of the job, seasonality, unpredictability of trade, negative perceptions and a lack of awareness of the industry are challenges to employment, especially among youth. despite recent wage increases, the average starting wage for plant workers/labourers ranges from $13.69 to $14.97 per hour (considered slightly higher than other sectors with low-skilled entry positions), which is also seen as a deterrent for those starting out.
AT A CROSSROADS
In Atlantic Canada, the seafood processing industry is at a crossroads in its development. There are currently more than 700 companies comprised primarily of small-to-medium-sized businesses with only one-quarter of companies having more than 120 employees. Many of the plants rely heavily on a seasonal, low-wage, low-skilled labour force to produce a single or limited number of lower value products. This makes it challenging to potentially transition to higher value products that rely on advanced automated methods, which in turn require significant upfront investment (technology, R&D investments), as well as potentially different skill levels among the workforce (and likely higher labour costs).
This contrasts with the european processing plants that tend to be highly specialized according to species, but which produce an array of product forms.
Other challenges include the precariousness of natural resources, ongoing impacts of climate change, resource management regimes, fluctuations in quota and supply of labour from both local and temporary sources; all of which negatively impact the ability of companies to invest in operations and raise capital for technological investment.
RECRUITMENT FACTS AND FIGURES
One of the most daunting obstacles facing the industry is recruiting workers, especially since the majority of processing plants in Atlantic provinces are located in remote, rural settings, with small and aging populations. Some key characteristics of the current labour force and noteworthy recruitment/hiring challenges include:
- women play a significant role, making up 43% of the workers in 2017;
- an aging workforce with more than 37% currently aged 55 years or older;
- movement to urban centres by youth, young families;
- challenges of engaging unemployed workers as major labour source during peak times;
- relying on a workforce that accesses eI benefits on a regular and systematic basis;
- 2% of workforce is composed of immigrants, temporary foreign workers;
- costs associated with applying to the temporary foreign worker program; and
- underrepresentation of Indigenous Canadians in the sector’s workforce.
LABOUR DEMAND VERSUS SUPPLY
In many regions, there are just too few people to meet the local employment requirements overall. It is estimated that the Atlantic fish and seafood industry will require 7,500 workers over the 2018 to 2030 period or roughly 600 workers on average per year to fill ongoing vacancies, replace retirements and work to address high turnover rates. This equates to approximately 50% of the current average workforce of 15,000 (2017). unfortunately, as processors try to grow, increase productivity and remain competitive, recruitment will occur within very tight regional labour markets, which already experience labour shortages during peak seasons; shortages that are predicted to continue into the foreseeable future.
WHAT CAN BE DONE TO IMPROVE THE SITUATION GOING FORWARD?
Options available for employers are limited. To meet hiring demands, they will need to compete against other seafood processors, as well as employers from other industries, which will be challenging given the anticipated increase in retirements among the workforce. In response, the research found that employers have attempted to bring in more workers (regional relocation, temporary foreign workers), tried to change processes to require less labour (automation, technology), or chosen to move the processing plants closer to more readily available labour sources. For any employers, hiring temporary foreign workers is neither easy nor cheap. For fish and seafood processors, this option is further complicated and made riskier by the fact that TFW applications must be placed well before catch quotas are set. The seasonal nature of processing also means that processors must reapply for TFW each year.
The research also suggests that governments, employers, educational institutions and communities work together to find solutions to the labour supply issue and in other areas, including offering R&D funding and assistance with marketing exports, immigration policies, eI policies, rural development initiatives, post-secondary education support, employment-related training and childcare support.
SEIZING OPPORTUNITIES
As recruitment and retention continue to be challenging, the situation has resulted in considerably more job opportunities for lower-skilled members of the labour market. Seizing on this opportunity, employers are attempting various approaches to entice people and to retain a returning workforce, including improving awareness of the industry by holding open houses and plant tours, offering shorter shifts and managing workloads to give workers guaranteed days off, assisting with transportation and housing needs, recognizing experience and seniority, rewarding referrals from current employees and adapting schedules to meet eI requirements.
- Other initiatives being undertaken by processing employers include:
- more involvement/partnerships with community agencies;
- “sharing” local labour supply with other area seasonal employers;
- developing closer ties with educational institutions – integrating work placements;
- growing partnerships between Indigenous peoples in processing, harvesting;
- recruiting youth through government/industry partnerships (Team Seafood) in summer;
- welcoming temporary foreign workers by providing housing/transportation and in assisting in becoming permanent residents; and
- using technology to reduce labour requirements, prolong retirement of an aging workforce.
While these measures have not produced universally positive results, progress is being made. Some large and small processors are investing in technology and infrastructure to improve productivity, expand value-added products and lengthen the processing season. developing new products will ultimately contribute to new markets, more revenue and the sustainability of seafood processing companies.
RECOMMENDATIONS
The following recommendations are drawn from the LMI study results and implications. Several are aimed at quickly stabilizing the sector’s labour market situation. The expectation is that these will provide sufficient time for the longer-term measures contained in the other recommendations to produce impacts and, ultimately, create labour market equilibrium in the fish and seafood processing industry.
RECOMMENDATIONS THAT ARE EXPECTED TO PRODUCE IMPACTS OVER THE NEAR TERM
RECOMMENDATION: ADDRESSING THE CRITICAL LABOUR SHORTAGE
The research has determined the sector is currently facing, and is expected to continue to face, a significant labour shortage. This situation has negative implications for the competitiveness of the sector and potentially, for its survival. There is a need to implement measures to help balance labour market supply and demand relatively quickly. The following recommendations are aimed at achieving this.
| Key Players | Initial Step |
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The federal government should consider:
- Taking a cross sectoral approach to promoting short term peak fish and seafood processing work within Atlantic Canada, especially among seasonal workers who are out of season.
- Change the Atlantic Immigration Pilot Program to be inclusive of seasonal fish and seafood processors.
- Revive the Career Focus Wage Subsidy Program for fish and seafood processors as it was an extremely effective recruiting tool for recent post-secondary graduates, with 90% of hires staying on.
- Changing how it defines the industry’s “foundational” jobs away from “low skilled”. This would aid perceptions of the sector, and improve immigration options for employers.
- Creating a fish and seafood processing seasonal worker program akin to the agricultural worker program. This would help reduce the amount of catch lost due to labour shortages, particularly at peak periods.
- Lifting restrictions on the number of times a Temporary Foreign Workers (TFW) can return to work for sector employers.
- Removing the cap on the number of TFW a sector employer can hire per year.
- Lowering the cost of applying to the TFW program.
- Simplifying the LMIA process (e.g., by making local level lmI data available to employers).
- Adjusting the current immigration pathways so that TFWs would be more likely to find work in the sector an enticing option (e.g., allow sector employers to work with those in other industries to pool hours to create a full-time job, assistance with housing and transportation).
RECOMMENDATION: REGIONAL SOLUTIONS
The current labour-market-demand-versus-supply situation is tight and projected to continue to be so until at least 2030. With no single obvious solution to the labour shortage, it is likely progress can only come through incremental improvements in a range of areas, including within plants (e.g., shorter shifts for older workers), as well as outside them (e.g., rural economic development). Government policies and programs can have a significant positive (or negative) impact on the industry’s success and, concomitantly, on the success of the communities where the plants are located.
It is recommended that governments at all levels, conduct a coordinated review of all relevant programs and policies, including, for example, R&d funding, immigration policies, eI policies (e.g., with regard to absenteeism, disincentives to work), employment-related training and rural development.
Additionally, that communications between federal, provincial, and municipal governments as well as intra-departmental discussions within government improve, to ensure there is more collaboration and a clearer focus on outcomes.
| Key Players | Initial Step |
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RECOMMENDATION: FLEXIBLE WORKPLACES
The fish and seafood processing sector’s approach to human resources management is more traditional than that of other industries. The research suggests there is significant room for innovation.
Some of the HR practices that contribute to problems, such as turnover and absenteeism, come from the fact that processors have no control over, and little advance warning about, the size and timing of raw product delivery (e.g., resulting in very long shifts for employees). Some businesses have responded by constructing holding tanks to keep catches longer, thereby spreading processing work over a longer period (e.g., resulting in shorter shifts).
In the absence of a holding tank, there are several ways to better align workplaces with employee preferences. A more rational and consultative approach to scheduling could allow shifts to be tailored, so that employees who are open to working longer or extra shifts can do so, while those who are not are only requested to do so as a last resort. more generally, potential approaches for increasing workplace flexibility include implementing shorter shift options in a plant that has a predominantly older workforce, along with time off for medical appointments and enhanced health benefits (e.g., prescription drug coverage). For a workforce that includes several women, tailored enhancements could include child-care provisions and additional parental leave.
Sector employers should consider developing a recruitment and retention rewards programs. examples include employee referral bonuses, retention bonuses, tenure milestone bonuses and recognition.
FPSC could assist by developing HR tools and training to help those with HR responsibilities implement some best practices.
| Key Players | Initial Step |
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RECOMMENDATIONS THAT ARE EXPECTED TO PRODUCE IMPACTS OVER THE MEDIUM TERM
RECOMMENDATION: SHARED HR SERVICES BUREAUS
To assists all firms (but particularly smaller ones), it is recommended that the sector, with the assistance of governments and industry associations, create shared HR services bureaus in strategic locations where the industry operates. The bureaus could be staffed by HR and finance professionals to provide firms with expert advice and services on a temporary, as-needed basis. Services could include:
- recruitment and hiring assistance
- researching government and other HR-related programs (e.g., subsidies and grants)
- application completion/proposal writing assistance
- assistance with the completion of Labour Market Impact Assessments required under the Temporary Foreign Worker Program.
- raising awareness of job/career opportunities by forging closer links with secondary and post-secondary schools, as well as assisting with the development of experiential learning programs.
- coordinating with other sectors that operate in opposite seasons to fish and seafood to maximize the utilization of domestic workers – in effect sharing workers so they work in more than one season, possibly even year-round. As a first step, it is recommended that the potential uptake from workers and businesses be studied, including potential impacts on eI claims.
The concept of “work-sharing” has a long history in Canada, including within provisions of the eI program. It is recommended that sector employers, possibly in collaboration with ESDC, apply this concept (albeit in reverse) by examining ways of coordinating with other non-industry employers to “share” the local, seasonal labour supply (e.g., combining seafood processing in summer with snowplowing in winter).
FPSC could support the bureaus at a national level by developing training modules and tools.
| Key Players | Initial Step |
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RECOMMENDATION: SOCIAL ASSISTANCE RE-SKILLING
The industry has a prevalence of positions that require neither a high school diploma nor previous training. At the same time, there is a need to increase the local labour supply and to attract youth to the sector.
It is recommended that one or more community partnership models be developed involving the sector, provincial social assistance programs and community organizations that work with social assistance recipients, to 1) raise awareness among social assistance recipients of employment opportunities within the sector, and 2) help equip them to take advantage of these opportunities.
For example, a specialized program could be developed to allow social assistance recipients to continue to receive some benefits while receiving on-the-job training and/or completing a probationary work period. Another program could focus on work readiness and essential skills. It is envisioned this training would lead to employment opportunities for trainees who are willing and able to continue in their positions.
| Key Players | Initial Step |
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RECOMMENDATION: INDUSTRY LEARNING PROGRAMS (LEADING TO CERTIFICATE)
The sector lacks clear pathways for employee advancement and, relatedly, suffers from high turnover rates.
It is recommended that the sector work with FPSC to develop online and other training programs that lead to a certificate. Certificates could help employees advance their careers, as well as count towards requirements for certification.
It is also recommended that the sector work with community colleges and adult education providers to develop education programs for the more highly skilled and well-paying positions in the sector (e.g., quality control, processing lead hand, processing foreperson).
| Key Players | Initial Step |
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RECOMMENDATION: SUMMER EMPLOYMENT
It is recommended that the sector market summer employment opportunities to Canadian and international post-secondary education students as unique income-generating adventure opportunities. The sector could emulate hotel and hospitality employers in some of Canada’s resort destinations (e.g., banff) by providing low-cost accommodations (e.g., build a “staff house”), extended time off to allow for local travelling/ exploration, and amenities that are popular with millennials. Other models to draw from include Katimavik programs.
| Key Players | Initial Step |
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RECOMMENDATION: ATTRACTING IMMIGRANTS TO SETTLE IN FISH AND SEAFOOD PROCESSING COMMUNITIES
Major cities in Atlantic Canada, such as Halifax and Moncton, have a significant number of immigrants, including some who are unemployed or underemployed. We also know from the Choicebook™ attitudes research that newcomers are relatively open to working in the sector.
It is recommended that the sector, government departments and immigration settlement agencies work together to raise awareness among immigrants of the benefits of working in the sector (e.g., salary/benefits, small community quality of life, affordability of housing).
| Key Players | Initial Step |
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RECOMMENDATION: FIRST NATIONS PARTNERSHIPS
Members of First Nations communities own and operate a few processing plants. The research also suggests these communities are a potential source of labour.
It is recommended that sector associations and the federal government develop partnerships with First nations communities to 1) support First nations processors, and 2) raise awareness among members of those communities of opportunities in First nations processing plants, as well as employment opportunities in the industry more broadly.
As part of these efforts, local economic development agencies and Service Canada offices should work with local First nations communities to better understand how various factors can help or hinder First Nations community members becoming part of the industry’s labour force. These agencies and offices could also serve as conduits or go-betweens for First Nations communities and employers who have had little or no contact with these communities in the past.
| Key Players | Initial Step |
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RECOMMENDATION: SECTOR EMPLOYMENT OPPORTUNITIES AWARENESS CAMPAIGNS
The image of the industry ranges from neutral to positive for a large portion of the public, including youth, Indigenous Canadians and immigrants. The industry could capitalize on this relative openness by providing labour market participants with opportunities to enhance their awareness and knowledge of jobs in the industry.
Methods could include open houses, organized tours and virtual tours that youth, employment counsellors, etc. could easily access online. The research also provides guidance for tailoring outreach and awareness campaigns to various segments. Potential overarching messages include:
- “The sector produces quality products that reach dining tables around the world.”
- “The sector is the linchpin between the sea and the chef’s kitchen.”
- “Producing healthy, life-sustaining food is more than just a job.”
It is recommended that the sector develop closer ties with secondary and post-secondary schools to help build awareness of employment possibilities among students and to develop and expand experiential learning programs (e.g., employment readiness).
| Key Players | Initial Step |
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RECOMMENDATIONS THAT ARE EXPECTED TO PRODUCE IMPACTS OVER THE LONG TERM
RECOMMENDATION: INNOVATION PARTNERSHIPS
Advanced processing technologies and automation developed specifically for Canada are needed in order to compete in global markets, but current circumstances do not support investment in the development of these technologies.
To close the automation and productivity gap, it is recommended that a partnership be developed among government, the fish and seafood processing sector, technology development and manufacturing firms, and universities to develop specialized technology for use in the sector, and possibly for export. Increased automation could also help retain older “core” workers by lessening the physically demanding nature of some positions. It could also help to lengthen the work season and minimize peaks and reduce overall labour requirements.
To close the automation and productivity gap, it is recommended that a partnership be developed among government, the fish and seafood processing sector, technology development and manufacturing firms, and universities to develop specialized technology for use in the sector, and possibly for export. Increased automation could also help retain older “core” workers by lessening the physically demanding nature of some positions. It could also help to lengthen the work season and minimize peaks and reduce overall labour requirements.
The core strategic priorities for the Ocean Supercluster are to formulate a shared innovation map to guide technology leadership projects and to undertake a program of cluster building to enhance the quality of collaborations while also extending their benefits widely. The Innovation Partnership should work with the Oceans Supercluster to ensure the needs of fish and seafood processing companies are considered and addressed by the Supercluster strategy.
It is also recommended that the Innovation Partnership:
- help address funding gap in prototype commercialization
- include an industry education component to raise awareness of available technology that could be adopted/adapted by processors
- include an avenue to communicate the most significant technology gaps to governments.
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