O. Reg. 569/17: VEGETABLES FOR PROCESSING - MARKETING
filed December 21, 2017 under Farm Products Marketing Act, R.S.O. 1990, c. F.9
Skip to contentontario regulation 569/17
made under the
Farm Products Marketing Act
Made: December 20, 2017
Filed: December 21, 2017
Published on e-Laws: December 21, 2017
Printed in The Ontario Gazette: January 6, 2018
Amending Reg. 440 of R.R.O. 1990
(VEGETABLES FOR PROCESSING - MARKETING)
1. Subsection 1 (1) of Regulation 440 of the Revised Regulations of Ontario, 1990 is amended by adding the following definition:
“associated producer” means, in relation to a processor or green shipper, a producer who has entered into an agreement for the purchase and sale of vegetables with the processor or green shipper; (“producteur associé”)
2. Section 10 of the Regulation is amended by adding the following subsections:
(2) If the local board proposes to make a regulation under subsection (1), the local board shall file with the Commission a copy of the proposed regulation at least 30 days before the earliest day on which a provision of the regulation would come into force.
(3) Despite subsection (2), a copy of a proposed regulation may be filed with the Commission less than 30 days before a provision of the regulation is to come into force if the Commission consents.
3. Section 12 of the Regulation is revoked and the following substituted:
12. The Commission limits the powers of the local board under clause 10 (1) (j) to matters that are not inconsistent with terms, conditions and forms of agreement settled by a negotiating agency established under section 16, 17 or 20 or awarded by an arbitration board under section 23.
4. The Regulation is amended by adding the following sections:
Requirements for Agreements for the Purchase and Sale of Vegetables and for Meetings
15.1.1 Sections 15.1.2 and 15.1.3 apply where a producer of a vegetable enters into an agreement with a processor or green shipper for the purchase and sale of that vegetable in accordance with the agreement’s terms.
15.1.2 On and after December 1, 2018, every agreement for the purchase and sale of vegetables shall provide, as a condition of the agreement, that the agreement may be terminated,
(a) immediately by the processor or green shipper, for cause, if the associated producer breaches the agreement by failing to produce vegetables for the processor or green shipper while the agreement is still in effect; or
(b) effective January 1, if either party gives written notice to the other party and to the local board on or before December 31 of the previous year.
15.1.3 (1) Each year, the local board shall hold a meeting for each processor and green shipper that has entered into an agreement for the purchase and sale of vegetables and invite the processor or green shipper, as the case may be, and their associated producers to the meeting for the purpose of,
(a) allowing the processor or green shipper and their associated producers to discuss anything relevant to the matters described in section 15.2 that are to be negotiated annually by negotiating agencies; and
(b) allowing the associated producers to elect from among themselves, by secret ballot,
(i) in the case of a processor or green shipper that has 10 or more associated producers, four individuals to be appointed as members to a negotiating agency by the local board under paragraph 1 of subsection 16 (3), or
(ii) in the case of a processor or green shipper that has fewer than 10 associated producers, two individuals to be appointed as members to a negotiating agency by the local board under paragraph 1 of subsection 16 (4).
(2) If a processor or green shipper has associated producers who produce more than one type of vegetable, the local board shall hold separate meetings with respect to each type of vegetable, but if a processor or green shipper so requests, the local board may hold a joint meeting for the processor or green shipper, as the case may be, and their associated producers who produce the relevant vegetable or vegetables.
(3) The local board shall give at least two weeks’ notice of the meeting to the processor or green shipper, as the case may be, and to their associated producers.
(4) The notice shall be given electronically or by telephone, at the email address or telephone number on file with the local board at the relevant time.
(5) The meeting shall be held at any time before the deadline for appointing members to negotiating agencies set out in Column 2 of the Schedule to this Regulation.
(6) If a processor or green shipper elects to negotiate jointly with one or more other processors or green shippers and each of the processors or green shippers has filed written consents with the local board in accordance with subsection 17 (1) before the deadline for giving notice of a meeting under subsection (3), the local board shall hold a joint meeting for the processors or green shippers, as the case may be, and their associated producers.
(7) At a joint meeting held under subsection (6), the associated producers shall elect, from among themselves, two individuals for every processor or green shipper who is a party to the joint negotiating agency who are to be appointed as members to the joint negotiating agency by the local board under subparagraph 1 ii of subsection 17 (2).
5. Sections 15.3 to 22 of the Regulation and the Schedule to the Regulation are revoked and the following substituted:
16. (1) A negotiating agency shall be established under this section for each processor or green shipper of each vegetable.
(2) The parties to a negotiating agency for a processor or green shipper of a vegetable are,
(a) the processor or green shipper; and
(b) the local board.
(3) If a processor or green shipper has 10 or more associated producers, the negotiating agency for the processor or green shipper shall consist of a maximum of 12 members appointed to the agency by the parties as follows:
1. The local board shall appoint the four associated producers of the processor or green shipper who were elected under subclause 15.1.3 (1) (b) (i) and may appoint a maximum of two additional individuals.
2. The processor or green shipper shall appoint a maximum of six individuals.
(4) If a processor or green shipper has fewer than 10 associated producers, the negotiating agency for the processor or green shipper shall consist of a maximum of six members appointed to the agency by the parties as follows:
1. The local board shall appoint the two associated producers of the processor or green shipper who were elected under subclause 15.1.3 (1) (b) (ii) and may appoint one additional individual.
2. The processor or green shipper shall appoint a maximum of three individuals.
(5) On or before the deadline set out for the relevant vegetable in Column 2 of the Schedule to this Regulation,
(a) the members of a negotiating agency shall be appointed; and
(b) each party to the negotiating agency shall give notice of the appointment of members to the agency to the other party and to the Commission.
(6) A notice of appointment of members to a negotiating agency shall include,
(a) the name of each member; and
(b) for each member, his or her business name, address, email address and phone number or, if there is no business address, email address or phone number, the member’s personal address, email address or phone number.
(7) If the local board or a processor or green shipper has failed to appoint a member to a negotiating agency on or before the deadline set out for the relevant vegetable in Column 2 of the Schedule to this Regulation, the Commission may make the appointment.
17. (1) Despite subsection 16 (1), a negotiating agency may be established for two or more processors or green shippers of the same vegetable, or for a combination of two or more processors and green shippers of the same vegetable, if the processors and green shippers who are interested in forming a joint negotiating agency each file a written consent to the establishment of a joint negotiating agency with the local board on or before the deadline set out for the relevant vegetable in Column 2 of the Schedule to this Regulation.
(2) Subsections 16 (2) to (7) apply with necessary modifications to the establishment of a joint negotiating agency, subject to the following:
1. The local board shall appoint associated producers from one of the following groups, as applicable:
i. If annual meetings are held separately for each processor or green shipper before the written consent mentioned in subsection (1) is filed, the local board shall appoint, from among the associated producers who were elected at the annual meetings, two individuals for every processor or green shipper who is a party to the negotiating agency.
ii. If a joint annual meeting is held under subsection 15.1.3 (6), the local board shall appoint the individuals who were elected under subsection 15.1.3 (7).
2. The local board may appoint two additional individuals.
3. The relevant processors and green shippers may jointly appoint the same number of individuals as the total number of individuals the local board is authorized to appoint under paragraphs 1 and 2.
18. (1) Despite sections 16 and 17, if the local board is unable to appoint the required number of associated producers to a negotiating agency under those sections for a year, the local board may request that the Commission reduce the number of members that must be appointed by the local board for that year.
(2) If the Commission reduces the number of members under subsection (1), the Commission shall direct the parties with respect to the composition of the negotiating agency for that year in a manner that permits the parties to have balanced representation on the negotiating agency.
Negotiations
19. (1) The first meeting of a negotiating agency established under section 16 or 17 shall be held no later than the deadline set out for the relevant vegetable in Column 3 of the Schedule to this Regulation.
(2) A party to a negotiating agency may convene a meeting of the agency,
(a) by sending written notice of the meeting to the other members of the agency at least seven days before the meeting; or
(b) by any means with the consent of all the members.
(3) The period of negotiations for a negotiating agency established under section 16 or 17 shall end,
(a) at 4:00 p.m. on the deadline set out for the relevant vegetable in Column 4 of the Schedule to this Regulation; or
(b) at any earlier time at which an agreement is reached.
(4) If a pricing advisory committee has been established under section 27 for the particular vegetable and the committee has made recommendations with respect to how the negotiating agency is to determine the minimum price of the vegetable or of any class, variety, grade or size of the vegetable, every negotiating agency established for the vegetable under section 16 or 17 shall follow the recommendations.
Late Negotiations
20. (1) A processor or green shipper of a vegetable that is not operating in Ontario at the time negotiating agencies for the vegetable are established under section 16 or 17 for a given year may nonetheless negotiate an agreement with the local board for that year, with respect to matters referred to in section 15.2, if the processor or green shipper gives a notice of intention to negotiate to the local board and to the Commission.
(2) If notice is given under subsection (1) by a processor or green shipper, a negotiating agency is established and the processor or green shipper, as the case may be, and the local board are parties to it.
(3) Within five days after a notice of intention to negotiate is given under subsection (1), the parties to a negotiating agency established under subsection (2) shall determine the following dates and give the Commission written notice of them:
1. The date by which members must be appointed to the negotiating agency.
2. The date by which the members must conclude negotiations.
(4) If the Commission does not receive written notice of the dates referred to in subsection (3) within the time period set out in that subsection, the Commission shall determine the dates and notify the parties to the negotiating agency of them.
(5) Subsections 16 (3) to (7) apply with necessary modifications to the appointment of members to a negotiating agency established under subsection (2), subject to the following:
1. The deadline for appointing the members is the date determined by the negotiating agency under subsection (3) or by the Commission under subsection (4).
2. If the processor or green shipper that gave notice of intention to negotiate under subsection (1) does not have any associated producers as of the relevant date referred to in paragraph 1, the following rules apply:
i. The local board shall appoint a maximum of six individuals, who shall include at least four producers of the relevant vegetable.
ii. The processor or green shipper shall appoint a maximum of six individuals.
(6) The period of negotiations for a negotiating agency established under subsection (2) shall end,
(a) at 4:00 p.m. on the date determined by the negotiating agency under subsection (3) or by the Commission under subsection (4); or
(b) at any earlier time at which an agreement is reached.
(7) If a pricing advisory committee has been established under section 27 for the particular vegetable and the committee has made recommendations with respect to how the negotiating agency is to determine the minimum price of the vegetable or of any class, variety, grade or size of the vegetable, every negotiating agency established for the vegetable under subsection (2) shall follow the recommendations.
Producer Meetings
21. (1) The members of a negotiating agency established for a processor or green shipper for a particular vegetable under section 16, 17 or 20 who were appointed by the local board may call a meeting of all the associated producers who produce that vegetable for the processor or green shipper at any time before the end of the period of negotiations to discuss any matter related to the negotiations.
(2) Despite subsection (1), the members of a negotiating agency established for a processor or green shipper under section 16, 17 or 20 who were appointed by the local board shall call a meeting of all the associated producers who produce vegetables for the processor or green shipper if,
(a) at least 10 per cent of the associated producers have signed a written request for the meeting and submitted it to the members appointed by the local board; or
(b) the negotiating agency has given notice to the Commission under section 23 that it has not arrived at a comprehensive settlement of matters set out in section 15.2.
(3) A meeting of associated producers shall be held,
(a) in the case of a meeting required under clause (2) (a), before the end of the period of negotiations for the negotiating agency set out for the relevant vegetable in Column 4 of the Schedule to this Regulation; or
(b) in the case of a meeting required under clause (2) (b), within 48 hours after the negotiating agency gives notice to the Commission under section 23.
(4) The meeting shall be called by giving notice to all associated producers electronically or by telephone, at each producer’s email address or telephone number on file with the local board.
(5) At a meeting required under clause (2) (b), the question of whether the negotiating agency should accept the processor’s or green shipper’s final negotiated offer or whether it should proceed to arbitration shall be voted on by secret ballot by all the associated producers present at the meeting if,
(a) at least 50 per cent of the associated producers for the processor or green shipper who is a party to the negotiating agency are present at the meeting; and
(b) at least 25 per cent of the associated producers referred to in clause (a) indicate that they are in favour of holding a vote on the matter.
(6) The result of any vote taken under subsection (5) is binding on the members of the negotiating agency who are appointed by the local board.
(7) This section does not apply to a negotiating agency established under section 20 if the processor or green shipper does not have any associated producers as of the date for appointing members determined by the negotiating agency under paragraph 1 of subsection 20 (3) or by the Commission under subsection 20 (4).
Conciliation and Arbitration
22. (1) Either party to a negotiating agency may refer matters to conciliation in accordance with this section at any time before the end of the period of negotiations.
(2) The Commission shall appoint a conciliator acceptable to the members of the negotiating agency.
(3) The negotiating agency shall submit to the conciliator a statement of matters in dispute.
(4) The conciliator shall,
(a) endeavour to effect agreement on any matter referred to the conciliator under subsection (3); and
(b) recommend adoption of any agreement effected under clause (a) to the negotiating agency.
23. (1) A negotiating agency shall immediately notify the Commission in writing if the negotiating agency has not arrived at a comprehensive settlement of matters set out in section 15.2 by,
(a) in the case of a negotiating agency established under section 16 or 17, 4:00 p.m. on the deadline set out for the relevant vegetable in Column 4 of the Schedule to this Regulation; and
(b) in the case of a negotiating agency established under subsection 20 (2), 4:00 p.m. on the date determined by the negotiating agency under paragraph 2 of subsection 20 (3) or by the Commission under subsection 20 (4).
(2) The notice referred to in subsection (1) shall be accompanied by,
(a) one or more statements of the matters in dispute;
(b) a statement of the final position of the members of the negotiating agency who were appointed by the local board; and
(c) a statement of the final position of the members of the negotiating agency who were appointed by the processor or green shipper.
(3) The Commission shall not refer the matters in dispute to an arbitration board before the meeting of associated producers required under clause 21 (2) (b) has taken place.
(4) The arbitration board shall be appointed by the Commission and shall consist of,
(a) three members, if all the members of the negotiating agency consent to there being three members on the arbitration board; or
(b) one member, in every other case.
(5) If more than one arbitration is required for different negotiating agencies established for processors or green shippers of the same vegetable, the Commission shall appoint the same arbitration board to conduct the arbitrations unless doing so is not practical in the circumstances.
(6) If a member of an arbitration board dies, resigns or becomes unable to act before the arbitration board has made an award, the vacancy shall be filled by the Commission and the arbitration shall be continued and completed by the arbitration board as newly established.
(7) An arbitration board shall not make an award on a matter until at least three days after the hearing has been completed.
(8) An arbitration board shall, in making an award, select without modification one of the statements of final position filed with the Commission under subsection (2), except that, if the parties to an arbitration agree, the arbitration board may,
(a) make individual awards with respect to one or more matters in dispute by selecting the position set out on the matter or matters in one of the statements of final position; or
(b) make any award that settles the matters regardless of the statements of final position.
(9) If only one statement of final position has been filed with the Commission under subsection (2), subsection (8) does not apply and the arbitration board shall select that statement as the award.
Conduct of Business by Negotiating Agencies
24. (1) If a vacancy occurs for any reason in the membership of a negotiating agency before the end of negotiations or of conciliation or arbitration under this Regulation, the party who appointed the member whose position is vacant shall fill the vacancy within three days after the vacancy occurs.
(2) If a party fails to fill a vacancy within the time required under subsection (1), the Commission shall fill the vacancy.
(3) If the vacant position belonged to an individual who was an associated producer of a processor or green shipper and who was elected at an annual meeting, the local board shall appoint another associated producer of the processor or green shipper to fill the vacancy.
25. Any deadlines for negotiations conducted by a negotiating agency that are set under this Regulation may be extended by agreement of the parties to the negotiating agency and with the approval of the Commission.
Advisory Committees
26. (1) An advisory committee is hereby established under the name “Vegetables for Processing Industry Advisory Committee” in English and “Comité consultatif de l’industrie des légumes de transformation” in French.
(2) The advisory committee shall be composed of a chair and a maximum of 20 other members, appointed as follows:
1. The Commission shall appoint the chair.
2. The local board shall appoint,
i. three producers elected by the producers from among themselves at a meeting held by the local board, and
ii. up to four other producers selected by the local board.
3. The Commission may appoint up to four producers.
4. The Association may appoint up to five processors.
5. The Commission may appoint up to two processors that are not members of the Association.
6. The Commission may appoint up to two industry stakeholders.
(3) Beginning in 2018, the members of the advisory committee shall be appointed by April 30 in each year and shall hold office from May 1 of that year until April 30 of the following year.
(4) If a member of the advisory committee dies, resigns or is unable to act, the entity that appointed the member shall appoint a replacement member to fill the vacancy for the remainder of the member’s term.
(5) The advisory committee has the power to advise and make recommendations to the Commission, the local board or the Association in respect of,
(a) the promotion of harmonious relationships between persons engaged in the production and marketing of vegetables for processing;
(b) the promotion of greater efficiency in the production and marketing of vegetables for processing;
(c) the prevention and correction of irregularities and inequities in the marketing of vegetables for processing;
(d) the improvement of the quality and variety of vegetables for processing;
(e) the improvement of the circulation of market information respecting vegetables for processing; and
(f) any matter in respect of which the Commission or the local board may be empowered to make regulations under the Act.
27. (1) A pricing advisory committee shall be established under this section for a vegetable if there are at least five processors of the vegetable in Ontario.
(2) The Commission may, at the request of the local board and the processors or green shippers of a vegetable, direct the local board and the processors and green shippers of the vegetable to establish a pricing advisory committee for the vegetable even though there are fewer than five processors of the vegetable in Ontario.
(3) The pricing advisory committee shall be composed of members appointed by the local board and by the processors and green shippers of the vegetable in Ontario in accordance with the following rules:
1. The processors and green shippers of the vegetable shall make best efforts to appoint at least one individual for every processor and green shipper, up to a maximum of 10 individuals.
2. The local board shall make best efforts to appoint at least one associated producer for every processor and green shipper, up to a maximum of 10 individuals.
3. The local board may hold an election to determine which individuals it will appoint under paragraph 2.
(4) Beginning in 2018, the members of the pricing advisory committee shall be appointed by April 30 in each year and shall hold office from May 1 of that year until April 30 of the following year.
(5) The pricing advisory committee for a vegetable shall advise and make recommendations to the members of negotiating agencies with respect to how the negotiating agency determines the minimum price of the vegetable or of any class, variety, grade or size of the vegetable.
(6) The pricing advisory committee for a vegetable shall meet at least once each year.
Review
28. The Commission shall conduct a review of this Regulation no later than March 31, 2020.
Transitional Matters
29. (1) Subject to subsection (3), for negotiations that begin in 2018, the deadlines set out in Columns 2 and 3 of the Schedule to this Regulation shall each be extended by 14 calendar days.
(2) Subject to subsection (3), section 15.1.3 does not apply with respect to negotiations that begin in 2018 and, in connection with those negotiations,
(a) the local board shall make the appointments described in paragraph 1 of subsection 16 (3) or paragraph 1 of subsection 16 (4), as the case may be; and
(b) the requirement under those paragraphs that the members be associated producers of the processor or green shipper applies but the requirement that they be elected does not apply.
(3) Subsections (1) and (2) do not apply to negotiations in respect of cucumbers or Spanish-type onions used for onion rings.
(4) The following negotiations shall continue to be carried out in accordance with this Regulation as it read immediately before the day O. Reg. 569/17 came into force :
1. Negotiations that began in 2017 in respect of cucumbers (hand harvest).
2. Negotiations that begin before April 6, 2018 in respect of cucumbers (hand harvest) and cucumbers (machine harvest).
(5) Negotiations that begin on or after April 6, 2018 in respect of cucumbers shall be carried out in accordance with this Regulation as amended by O. Reg. 569/17.
Deadlines Not Falling on Business Day
30. (1) For the purposes of sections 15.1.2 to 29, if something is required to be done on or before a date specified in this Regulation that is not a business day in a particular year, the thing must be done on or before the next business day.
(2) In this section,
“business day” means a day that is not,
(a) Saturday, or
(b) a holiday within the meaning of section 88 of the Legislation Act, 2006.
Schedule
|
Item |
Column 1 |
Column 2 |
Column 3 |
Column 4 |
|
1. |
Cucumbers |
November 15 |
November 24 |
December 15 |
|
2. |
Peas |
January 15 |
February 1 |
February 22 |
|
3. |
Sweet corn |
January 15 |
February 6 |
February 27 |
|
4. |
Tomatoes |
January 15 |
February 8 |
March 1 |
|
5. |
Carrots |
January 15 |
February 6 |
March 6 |
|
6. |
Cabbage |
January 15 |
February 14 |
March 7 |
|
7. |
Peppers |
January 15 |
February 15 |
March 8 |
|
8. |
Beets |
January 15 |
February 26 |
March 19 |
|
9. |
Cauliflower |
January 15 |
February 26 |
March 19 |
|
10. |
Green and waxed beans |
January 15 |
February 20 |
March 13 |
|
11. |
Lima beans |
January 15 |
March 1 |
March 22 |
|
12. |
Pumpkin and squash |
January 15 |
March 1 |
March 22 |
|
13. |
Spanish-type onions used for onion rings |
October 15 |
October 25 |
November 15 |
Commencement
6. This Regulation comes into force on the day it is filed.
Made by:
Pris par :
Ontario Farm Products Marketing Commission:
La Commission de commercialisation des produits agricoles de l’Ontario :
jim clark
Chair
mike Relf
Secretary
Date made:December 20, 2017
Pris le : 20 décembre 2017