Clearwater Seafood selling N.S. lobster facility, announces temporary layoffs

Clearwater Seafoods is making big changes to its inshore lobster business, leading to job losses at a Lockeport, N.S. plant and temporary lay offs at its Arichat, N.S. processing facility.

Employees in Arichat were informed Wednesday that the layoffs were effective the same day, and that it was anticipated they would be recalled back to work by a new owner around the first week of May.

Global News obtained a copy of the letter delivered to workers, which stated, “in short, Clearwater has made the strategic decision to exit the lobster business.”

In a statement, Clearwater said it has decided to change its inshore lobster procurement, grading, live storage and processing business.

“We are currently in late-stage negotiations to sell our Arichat live lobster holding facility to an experienced local operator, and we will no longer operate the seasonal lobster processing line at our Lockeport facility,” wrote Christine Penney, vice-president of sustainability and public affairs.

“The Lockeport plant remains open and will remain in full, 12-month operation as a scallop-focused facility.”

Lockeport Mayor Derek Amalfa said abut half of the 145 people employed at their plant will lose their jobs.

“We’re terribly disappointed with the news. Clearwater’s been a major employer, the biggest employer in Lockeport for close to 40 years. So to hear that they’re shutting down half of their operation and laying off a representative amount of employees is a tough pill to swallow,” he said.

“Lockport’s a very small community. We’re under 500 people. So all of the people that are affected are friends, neighbors, family. And in a small community like this, we’re all directly affected.”

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Sign up for breaking National newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

He said the town council, who were all newly-elected last fall, are working on a “game plan” with the local chamber of commerce on how to support workers and the economy.

“The community as a whole, because we are so close knit, we rely on one another and we’ve got a tough, resilient, hard working community,” he said.

Clearwater said the company has 1,100 employees across Atlantic Canada and the changes announced this week impacts about five per cent of the company’s workforce.

Penney added the changes are “difficult but necessary” for the long-term health of the business in the “challenging market conditions.”

“We are refocusing our lobster business on the offshore harvesting operations and strategic alignment with other affiliated companies. Our shareholders are moving forward with investment in a new offshore vessel to support this business,” she said.

Clearwater began in the 1970s as a small lobster retailer in Nova Scotia. In 2021, it was acquired by a partnership between Premium Brands and seven Mi’kmaq communities — led by the Membertou First Nation in Cape Breton and Miawpukek First Nation in Newfoundland and Labrador — in a $1 billion deal.

2:41 Mi’kmaq coalition buys 50% of Clearwater Seafoods in N.S.

Penney said Clearwater purchases about one per cent of the Canadian inshore supply of lobster.

Kris Vascotto, the executive director of the Nova Scotia Seafood Alliance, said the inshore fishing industry remains “quite healthy” in Nova Scotia.
“I don’t think anybody should look at this announcement and say that … there’s a freefall going on in the inshore fishery, because that certainly is not the case,” he said.

He said the one per cent loss of a buyer won’t be a major problem for the industry because it will be easily absorbed. However, he said it is notable that Clearwater is stepping away from the lobster industry.

“They actually pioneered many of these foreign markets that have now become flushed today with Nova Scotian lobster,” he said

“At the same time, they made their own business decision. So, while it is a shame to see them decide to transition away from that world that they developed, so to speak, it’s a business decision on their own right. And we’re really not expecting any major disruptions on the shore side.”