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Judy Foote, MHA for the District of Grand Bank,
said the latest results released by Fishery Products International (FPI) is
proof that the company’s only interest is in securing as much wealth as it
can for its shareholders.
"Unfortunately, the company has forgotten
about it’s most important shareholders, its employees," said Ms. Foote. "The
company’s actions with respect to the closure of the plant in Harbour Breton
and the ultimatum given to those who work at the fish plant in Fortune is
proof of the mind set of the Board of Directors of FPI."
While speaking about the profitability shown
by FPI’s U.S. division, Ocean Cuisine International, and the company, FPI
CEO Derrick Rowe said in a recent interview: "Ocean Cuisine had a very, very
good year and it’s the first year FPI broke $800 million in sales. If you
were to convert the U.S. business back to Canadian dollars at the old
exchange rate, the number would be substantially bigger. So, we’ve grown the
US business in Canadian dollars reported, even though the Canadian dollar
has lost about 20 per cent of its value."
"This statement is from a company that got
its start through an infusion of money from the Government of Newfoundland
and Labrador and taxpayer’s dollars. And, a company that has told one
community in rural Newfoundland and Labrador that it has no future and left
another hanging in limbo, unsure of what the future holds.
"If Premier Williams and his cabinet have any
intention at all of standing up for rural Newfoundland and Labrador, this is
a good time to start. If not, with the government’s help, FPI will establish
its income trust and sell 40 per cent of the shares on the open market to
the detriment of its operation in this province.
"Even though Mr. Rowe said in the interview
that FPI’s primary division, the Newfoundland harvesting and processing
division, saw fourth quarter revenues decrease 7.6 per cent to $66.2
million, he did admit that the Newfoundland division’s annual sales were up
1.5 per cent to $275.7 million compared with 2003. Who’s to say that trend
won’t continue.
"Mr. Rowe has continued to use competition
from China as a reason why the company is not making as much profit as it
needs to, along with the rise in the Canadian dollar. Maybe if FPI wasn’t
contributing to China’s success by providing them with fish, there would be
less competition and obviously more employment for their workforce in
Newfoundland and Labrador. Whatever, it certainly appears that FPI is not
willing to share the company’s overall profits with what hasn’t always been
the case, but is today, it’s less profitable division. Clearly, the company
has decided it’s real reason for existing is to secure as much wealth as it
possibly can for its shareholders which doesn’t include its fish plant
workforce.
"Undoubtedly the Board of Directors of FPI
has lost sight of the very reason the company was created and, if allowed by
the Williams government to proceed with it’s plan, will lead to the end of
processing by FPI in Newfoundland and Labrador and put the remainder of its
workforce in this province out of work. Such action can only result in more
people having to leave their rural communities in search of employment which
I fear will spell the end for many of those communities."
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