 Action Seeks to Maintain Level Playing Field in Salmon Industry May 09, 2002
While expressing concern for Alaska fishermen without markets this year, Knowles last month rejected Global's initial request, saying there was no surplus of fish that the domestic industry did not intend to harvest. That is the first hurdle set in the federal Magnuson-Stevens Act regarding the use of foreign processors under certain circumstances. "A recent processor capacity survey shows that there may be some excess fish available for harvest in the Alaska Peninsula and Cook Inlet areas. However, as part of my responsibility to protect the interests of the State of Alaska, I must consider additional issues," Knowles said in a letter to Global President Oleg Nikitenko. "Management regulations, combined with the error inherent in run forecasting, make it extremely unlikely the pink salmon harvest will exceed existing processing capacity in either of these areas." Knowles repeated his concern about fishermen without markets for this salmon season and stepped up his personal pressure on domestic processors to take on more boats this season. The Governor is also seeking increased federal salmon purchases to help relieve some of the current carryover inventory of canned salmon. In denying the request, Knowles raised concerns about maintaining a level playing field for the salmon industry in terms of wages and working conditions. "In responding to a request that Global Seafoods demonstrate its intent to comply with existing Alaska and U.S. employment laws and regulations, such as minimum wage and workers' compensation, you replied that Global would not comply because, in your view, these laws do not apply to your operation," Knowles said. "Whether or not your legal analysis is accurate, I will not allow a foreign-owned business to operate in Alaska, in direct competition with Alaska businesses, with the unfair advantage of paying far below minimum wage. The potential displacement of working Alaskans with foreign workers at lower wages is a very serious concern." Knowles also raised concerns about competition with existing markets. While Global has stated the harvested salmon will not be canned and will not be introduced into any existing markets, the State of Alaska has seen no proof of this. "I do not want to accelerate a 'race to the bottom' in salmon prices, particularly at a time when all market indicators suggest salmon markets are saturated, with significant inventories remaining unsold," Knowles said. The Governor noted that the Alaska salmon industry is already facing major challenges from overseas competitors. "We have great difficulty competing economically with foreign fish farms that operate with cheap labor and inadequate business and environmental regulation," Knowles concluded. "It's bad enough that it is allowed overseas, but it would be unconscionable to allow such practices in our own waters. Therefore, for these reasons I find sufficient grounds to deny Global Seafoods' request for a permit to operate in the internal waters of Alaska."
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