Regulating Vegetable Processing Negotiations

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Ontario Regulation 362/24, an amendment to Regulation 440 of R.R.O. 1990 under the Farm Products Marketing Act, introduces significant changes to the regulation of vegetable processing negotiations in Ontario. The regulation, filed on September 20, 2024, and published in The Ontario Gazette on October 5, 2024, modifies the processes surrounding the negotiation and arbitration frameworks for producers, processors, and green shippers of vegetables for processing.

One major amendment includes adding clause “23.5.1” to section 12, enabling joint negotiation by processors. This new provision expands existing clauses to allow multiple processors to negotiate together, subject to specific criteria. For example, processors must file a written consent with the Ontario Farm Products Marketing Commission, and the majority of each processor’s associated producers must vote to support joint negotiation.

Sections 15.1.2.1 (2) and (3) and other outdated clauses have been revoked, with the restructured provisions focusing on improving clarity in the negotiation process. Under section 21, new rules mandate that if a negotiating agency fails to reach a settlement, its members, appointed by the local board, must organize a meeting with all associated producers within a set timeframe. Specifically, if a settlement notice is given to the Commission and more than half of the producers request a meeting within three days, the agency must arrange the meeting within five business days. This change enforces timely communication and decision-making when a deadlock occurs, which can ensure that unresolved issues are addressed efficiently.

Furthermore, Section 21’s revision includes provisions for voting procedures. If a quorum of 50% or more of the associated producers is present at the meeting, they may vote by secret ballot on whether to accept the final negotiated offer or proceed to arbitration. The regulation clarifies that the final negotiated offer refers to the last offer submitted before the deadline for the relevant vegetable category, as specified in the schedule. This voting mechanism ensures that producers have a say in the negotiation outcomes, providing them with a greater sense of control over decisions that directly impact their operations.

In another important update, section 22 mandates that the negotiating agency appoint a conciliator if a dispute arises, replacing the Commission’s previous role in appointing this individual. Additionally, Section 23 outlines the Commission’s limitations in referring disputes to arbitration. The Commission may only do so if a meeting has taken place, quorum requirements are met, or if the majority of producers at the meeting vote to proceed to arbitration.

Amendments in sections 23.9 and 23.10 bring changes specific to conciliations and arbitrations for tomatoes and carrots. When the agency appoints a conciliator, that person may also serve as a sole member of the arbitration board, simplifying the dispute resolution process. Finally, section 28 is repealed, likely removing outdated or redundant provisions from the regulation.

Ontario (362/24) October 5, 2024