Talks between Iceland’s striking fishermen and their employers’ representative body have reached an impasse, as sources told Undercurrent News the length of the strike now means that frozen supplies are thin on the ground.
In December, when this strike began, sources were hopeful that the situation would not last too long, and that while supplies of fresh fish would quickly dry up, frozen stocks would keep trade going until the end of January.
“We can now say that everything is an issue now, fresh and frozen,” one executive with an Icelandic processor told Undercurrent.
“The strike has lasted for six weeks; everybody knows about it, and are making new buying arrangements. It will be tough to get back into those markets. There’s no question we’re losing business.”
A second processing executive confirmed their business too was approaching the end of frozen inventories.
“We have maybe one or two weeks’ more stock. My concern is that retailers, for example in the UK, which might have sourced from Iceland for ten or 15 years, will look to other countries.”
The peak fishing season is just about under way now, for Iceland as well as its rivals, said the first source. This is when the fish are at their best condition, so the loss of fishing time is being felt especially keenly.
Iceland’s government has the power to end industrial action, but the recently-formed cabinet has said several times that this is a dispute the two parties must solve themselves.
“There must be some pressure for the government to step in,” said the second processing source. “But the new fisheries minister [Borgour Katrin Gunnarsdottir] is actually from a party which wants to raise taxes on the seafood sector; she may well not step in.”
The fishermen met with the country’s vessel owners’ association, Fisheries Iceland, early this week, but negotiations lasted for an hour before ending; and no further meeting was arranged, sources said.
It seems there are just two points left to be argued. Firstly, the fishermen want to see the 30% share of boat income which is spent on oil and maintenance costs reduced to 27%, meaning slightly more for their wages, one source said.
Secondly, they want to see a return of tax discounts which existed prior to 2009.
“After the banking crash the government needed money, and so the fishermen lost their tax deductable per day at sea. They were paid in accordance with currency, so at that time they were being paid very well indeed.”
“Now they want it back, but it’s a delicate question. Arguing for benefits now, when 2016 was not so good a year for fisheries as 2015, and 2017 looks set to be not great overall; it’s a dangerous precedent to set now.”
The next step is to arrange the next official negotiation meeting; the parties are required to hold it within two weeks, but sources hoped it would be much sooner.
Meanwhile, the Grimsby Telegraph has reported that the British Ambassador to Iceland, Michael Nevin, has briefed Grimsby Fish Merchants Association.
In a communication to Grimsby FMA secretariat Simon Dwyer, he said: Unfortunately, it seems agreement is still some way off. The fishing workers have quite a list of demands, partly related to a decline in income that comes with a strengthened Icelandic Krona and weaker sterling.”
“The Minister says she does not intend to intervene with executive measures or legislation, as this would set a damaging precedent. But she and others involved are well aware and share our concern about the damage to British business, particularly on the Humber, and to the potential loss of markets in the UK for Icelandic exports.”
Dwyer has said that sufficient supplies to meet demand from merchants and processors are being sourced thus far.
Norwegian, Scottish, Faroese, Irish and Danish fish has been brought to Grimsby, where 70% of the UK’s seafood is sourced by retailers. On the market, Icelandic supply has traditionally accounted for 75% of the sales.
“Supplies of Icelandic fish to the market have been very limited,” said Martyn Boyers, chief executive of market operator Grimsby Fish Dock Enterprises. “We have had other fish, but not to the extent that it fills the whole left by the Icelandic supply.”