02/03/2014 12:01 EST | Updated 04/05/2014 05:59 EDT

Scallop fishermen to get compensation because of Muskrat Falls link

ST. JOHN'S, N.L. - The union that represents fishermen in Newfoundland and Labrador has reached an agreement with Nalcor Energy to compensate scallop harvesters who will lose a fishing ground because of the Muskrat Falls project.

The Fish, Food and Allied Workers union says a 1.5-kilometre section of scallop fishing area will be affected by the installation of a subsea cable in the Strait of Belle Isle between Newfoundland and Labrador.

The union says the agreement provides a $2.6 million lump sum plus an additional 15 per cent for administrative costs to cover long-term compensation.

Fishermen are expected to receive the fund in annual payments over 30 years.

The union says the share of money to those affected will be proportionate to their landings.