The Atlantic Groundfish Strategy (TAGS) - March 1998

The Atlantic Groundfish Strategy (TAGS)

View Whole Report

• Introduction
• Evaluation Approach
• Key Findings

The Atlantic Groundfish Strategy (TAGS) was initiated in 1994 in response to the mass layoffs in the groundfish industry resulting from the depletion of the stock of groundfish. TAGS is administered by Human Resources Development Canada (HRDC), the Department of Fisheries and Oceans (DFO), and two federal regional development agencies, in collaboration with provincial governments, and industry and community organizations. Via active labour adjustment strategies, capacity reductions, and community economic development activities, TAGS was initially designed to provide income support and adjustment services to more than 40,000 displaced groundfish harvesters and processing workers in five provinces over a five year time span. Program goals also included restructuring the Atlantic groundfish industry to one which is economically viable and environmentally sustainable, and facilitating the economic development of communities affected by the groundfish moratorium. As a result of budgetary pressures and other implementation problems such as more applications than originally anticipated, by mid 1996, TAGS activities other than income support were scaled down considerably. The evaluation of TAGS was conducted between 1994-95 and 1997-98. This summary identifies key findings from the study.

The evaluation relied on multiple sources of information to estimate the effectiveness of TAGS. These include client and comparison group surveys, focus groups, key informant interviews, community case studies, HRDC program and administrative data, and literature pertaining to policy and delivery mechanisms. Overall, the study was designed to assess the extent to which TAGS was successful in terms of encouraging clients to adjust out of the groundfish industry. The study also examined household and community effects on the adjustment process, the design, management and implementation of the program, and constraints to achieving program objectives.

Over one-quarter of TAGS clients were successfully adjusted out of the groundfish industry.

The evaluation estimated that, in 1996, 10,635 (27%) of all 40,025 TAGS clients met the study's criteria for adjustment out of the groundfish industry (i.e., they had earned income from all sources other than TAGS which was at least 80% of their pre-closure earnings, and they were no more reliant on UI/EI than they were prior to the groundfish fishery closure). In addition to these individuals, another 1,492 (4%) clients had accepted early retirement or license retirement packages offered through TAGS.

Establishing precise estimates of the level of adjustment which could be attributed to TAGS was beyond the scope of the study. The evaluation found that of the 12,127 clients who had adjusted or who had accepted early retirement or license retirement packages in 1996, 6,154 (51%) had received active interventions (including counselling), and 5,973 were adjusted without these HRDC interventions. Overall, though, 88% of all interventions (some clients received multiple interventions) were provided to individuals who had not adjusted in 1996. It was difficult to determine the extent to which adjustments could be linked to TAGS and/or HRDC interventions, however, because many of the successful adjustments out of the groundfish industry may have occurred in the absence of the program (e.g., fishing/processing other species, etc.).

Despite being successfully adjusted, a sizeable portion of TAGS clients demonstrated continued reliance on HRDC income and employment support programs.

Evidence from the study suggests that approximately 75% of adjusted TAGS clients relied on EI/UI or TAGS/HRDC employment supports for up to 80% of their income.

The majority of adjusted TAGS clients obtained employment in other sectors of the fishing industry, and have not considered other career options.

Overall, 80% of all TAGS clients who worked in 1996 did so primarily in the fishing or fish processing sector. The median duration of work for TAGS clients was twelve weeks. Many of these individuals did not earn sufficient income from all sources other than TAGS/HRDC benefits to meet the study's adjustment criteria.

Among those who met the adjustment criteria in 1996, only 1,040 clients (10%) were employed outside the fishing industry for their main source of income, while 9,595 (90%) had obtained employment within the fishing industry, harvesting or processing species other than groundfish. In addition, the vast majority of TAGS clients who shifted to other sectors of the fishing industry indicated that they intend to return to the groundfish sector if and when the fishery reopens.

While the median number of weeks worked in 1996 by adjusted TAGS clients who found employment in the fish or fish processing sector was twelve, their median income was $22,608. Conversely, adjusted TAGS clients who obtained a job outside the fishing industry worked for a median 30 weeks at a median income of $20,552. Moreover, 732 of the 1,040 adjusted clients who found employment outside of the fishing industry (70%), received an active HRDC intervention.

Fishers and plant workers affected by the Atlantic groundfish shutdown possess characteristics which represent systematic barriers to successfully adjusting out of the industry.

The evaluation found that compared to other HRDC client groups, workers displaced by the groundfish moratorium face greater challenges to permanent labour market adjustment. The TAGS client population possesses relatively lower levels of education (nearly three-quarters have no high school education) than do other HRDC clients. These individuals also tend to be older (almost one-half are 40 or older) than other displaced workers, and often have family, household and financial responsibilities and commitments which limit their mobility options. They frequently exhibit a limited range of transferable job skills, and reside in areas of high structural unemployment — generally in small, rural and remote communities. Moreover, TAGS clients typically possess strong cultural and community ties which impede on their willingness to adapt to change. As a result of these inherent characteristics, they often encounter re-employment barriers which likely impact on their ability to achieve timely and permanent adjustment.

Age and education are important factors in adjustment.

The evaluation found that clients who had completed high school or more were more likely than less educated individuals to have participated in skills training, job placement and mobility supports offered through TAGS. In addition, individuals with higher levels of education were more likely to have adjusted out of the fishing industry. Similarly, TAGS clients in their 30s and 40s more frequently met the study's adjustment criteria out of the fishing industry than the younger and older clients.

Community involvement and local-level partnerships play an important role in the adjustment process.

Based on community case studies and key informant interviews, the evaluation found that community organizations and local-level leaders possess considerable influence on the adjustment choices, attitudes and behaviours of TAGS clients. The focus groups revealed that hard-to-adjust TAGS clients were more willing to participate in, and exhibited better adjustment outcomes as a result of community-based interventions.

In addition, where locally-driven partnerships were established, a more positive attitude towards adjustment was developed. There is also some indication from focus groups that positive adjustment results are associated with strong cooperation and involvement from fisheries employers in terms of identifying training needs, encouraging employees to participate, and selecting clients for particular adjustment activities.

Adjustment is a family and household process.

TAGS/HRDC adjustment programs were largely focussed on individual clients, but their adjustment decisions are made, in a large part, by family/household influences and constraints. The 1995 TAGS client survey revealed that family-related issues represented barriers to adjustment for many clients. Overall, 84% of TAGS clients live in families with spouses, and 54% have at least one dependent under the age of 18 in the household. The majority of TAGS clients have substantial investment in household property and the fishery, and fear losing the value of these assets. Decisions to adjust are also constrained by the work situations of other family members. Moreover, because these clients are less mobile, their training options were limited to community delivered instruction, typically comprising only of Adult Basic Education.

The majority of unadjusted TAGS clients display continued commitment to the fishery, have not participated in active adjustment activities, and are pessimistic about future employment prospects.

The evaluation's 1996 survey identified three major sub-groups of unadjusted clients into which 68% of the TAGS client population could be classified. These groups include: clients planning on remaining in the fishery; likely adjusters; and individuals facing adjustment barriers with no specific directions in mind.

TAGS clients who plan to remain in the fishery fully intend to continue fishing, but have not successfully replaced groundfish as a source of income. In 1996, they worked an average of only four weeks, and typically have not participated in any TAGS employment and training programs. Individuals falling

into the "likely adjusters" group have actively pursued adjustment through TAGS interventions, and tend to be more optimistic about their future employment prospects outside of the fishery. They have not, however, successfully obtained sufficient employment to offset earnings losses resulting from the moratorium. Individuals in the third group of unadjusted TAGS clients face serious barriers to adjustment because of age, education, and other characteristics which limit their re-employment prospects. These individuals tend to be extremely pessimistic and uncertain about their future, yet none have taken advantage of the programming offered through TAGS.

Success with the design and implementation of TAGS provided HDRC with valuable experience in developing large-scale, innovative, community-based, and client-centred programs.

TAGS represents the largest labour force adjustment program developed in Canada in response to an industrial shutdown. Given the scope and magnitude of the program, and the relatively short time span in which it was designed and administered, the evaluation concluded that the implementation of TAGS was a substantial achievement, despite initial difficulties. In addition, the TAGS experience provided HRDC with a vehicle for testing innovative strategies to providing clients with individualized, community-driven programming based on a partnership approach.