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BC Ferry layoffs sign of privatization failure: Coons

Job cuts at B.C. Ferry Services Inc. are another sign the publicly owned company is having serious financial problems, said NDP ferry critic and North Coast MLA Gary Coons.

Around 35 managers lost their jobs Friday, he said, and the number of jobs cut is expected to climb to close to 100.

“Obviously B.C. Ferries is having serious financial problems,” Coons said. “We're seeing the dismal failure of this privatization scheme.”

A call to B.C. Ferries' media line was not returned by publication time. Nor was transportation minister Kevin Falcon available. A ministry official said Falcon would not comment until B.C. Ferries makes a public statement on the layoffs.

In 2003 the B.C. Liberal government restructured the crown corporation into a private company. The government still owns the company and will spend $168 million on it this fiscal year. Since 2003 B.C. Ferries has accumulated $1.26 billion in long-term debt.

As a crown corporation BC Ferries used to have to report how many employees it had. Since 2003 it has not, but Coons said there are indications management has ballooned at the company. One source tells him the number of managers has doubled since 2003, he said, while a comparison of company phone books shows there are now 37 percent more managers than there were in 1993.

Job postings in the last few years have included positions for an Elevator/Escalator Systems Manager and a Menu and Recipe Development Manager, he said.

The company also recently said it plans to move its head office into a space that will be about 50 percent larger than what it now has at Fleet House in downtown Victoria.

Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.

17  Comments:

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  • quarry bay

    3 years ago

    Why indeed

    How could there be layoffs, we have 3 brand new defective ferries to run,so unless these people were not needed in the first place?
    Unless sailings are to be cancelled or service to be cut or maybe this is a prelude to the sale of BC Rail,another question is about employment,it shows that the phoney concern Gordon Campbell expressed over making sure the Millennium development workers kept their job, looks like the Campbell Liberals only have selective concern over job losses!

  • G West

    3 years ago

    EXCLUDED EMPLOYEES

    I hope these guys/girls won't be among the laid off..."Elevator/Escalator Systems Manager and a Menu and Recipe Development Manager"...nice work if you can get it. Funny thing about the food though – it’s still pretty gag-worthy…maybe they’re working on the ‘menu’.

    A 37+ percent increase in the ranks of management at BC Ferries...how much of that since David Hahn took over - I wonder! Now, what were the advantages to privatization? I’ve forgotten. And yet people think Gordon Campbell is a good financial manager? AMAZING….

    And still the quality of service and value for money goes down - How much do you suppose they're paying the parking narcs in the short-term lots now...or the 3-minute police in the drop-off lanes.

    How embarrassing must it be to be sent out ever sailing to harass the old folks with walkers as they hustle out of their cars?

    Maybe we need a little more accountability for the shareholders Mr CEO. You think?

  • NicS

    3 years ago

    Doesn't "White Spot" Now Do Ferry Food?

    HeyG West, I think this explains why you find their food rather gag-worthy. 'Those' are the advantages of voting for the Liberals and Privatization.

  • Kam Lee

    3 years ago

    Lay-offs

    Every time I see gordo get up on his hind legs and spout his dribble of PPP &
    privatization I laugh. It's time for him to go. Back to the bar gordo!

  • G West

    3 years ago

    YEP, I THINK THAT'S TRUE

    BTW, is the boycott of White Spot food (including on the ferries) over Ron Toigo's intention to pull farmland out of the ALR still going on?

  • dj mk

    3 years ago

    biased reporting

    1993 was 16 years ago. 37% more managers over 16 years might not be that big of a deal.

    also andrew, what exactly are you reporting here? on one hand your reporting that 35-100 managers are being laid off, and on the other hand you are saying that there are too many managers. meanwhile, your title suggests that these layoffs are a big political F^&k Up.

    give me a break

  • happy

    3 years ago

    Absolutely right West

    Top heavy. Clean house. Total number of management to workers should be about 10% in any decent run company.
    Sneaky couple of shots you got in there. I noticed and thank you for thinking of me.
    Got any figures yet for those cancellations? Too soon I guess.
    Anyhow, Cheers, but one thing I have to ask also.
    Why are you shouting?

  • NicS

    3 years ago

    Kill Two Birds With One Stone

    Yes, I do believe we are still boycotting White Spot on BC Ferries and elsewhere in support of the ALR. Bringing your own food on the ferries is easy enough, although we never eat at White Spot anyhow. To many real restaurants to choose from.

  • Andrew MacLeod

    3 years ago

    Response to dj mk

    In the absence of any clear statement about the job cuts from BC Ferries or the transportation minister, I reported on what NDP ferry critic Gary Coons had to say about what's happening at this publicly owned private company. The headline, you'll note, makes it clear it is summarizing Coons' position.

    That said, I don't think the argument is as illogical as you suggest. The government restructured BC Ferries in 2003. Since that time fare prices have gone up, ridership has recently dropped and apparently the number of managers have gone up (though on this last point it would be nice to have exact numbers from BC Ferries). As Gregg Dow at Save Our Ferries points out, expenses have been up and earnings down. Something had to give, so now you're seeing job cuts.

    Who would you say is responsible?

  • PeteL

    3 years ago

    Just thinkin'

    If you want to make an impression on Toigo, I'd consider leafleting the Vancouver Giants games. Not only does he own that team, which uses every opportunity to shill for the Campbell Liberals, they have a Whitespot inside the main doors.

    Its a fairly working class and young crowd and I'm sure they'd be interested.

  • G West

    3 years ago

    Not shouting happy

    Just making a point....look around, you're a clever guy, you'll figure it out.

    I'll let you know - fortunately, I don't have to travel on Campbell's navy this month...

  • sunshine coast girl

    3 years ago

    The privatization of BC Ferries

    is a complete and utter failure. Drop the experiment and return BC Ferries to a crown corporation now, Mr. Premier!!

  • G West

    3 years ago

    SUCH A DEAL I HAVE FOR YOU!

    Well boys and girls, I hate to have to tell you this, but the much ballyhooed privatization of BC Ferries (it's actually a pseudo privatization) is likely going to cost you a lot more than just increased fares on Das Boots...

    I know David and his friend Gordon would really rather you didn't know this, but 'our' company now has a total long term debt of $1.26 billion (that's the 'B' word all right) and, once again the CEO premier would really rather you didn't know, but almost all of that number has been accumlated since 2004 (that's 2004 luke - not 1998). In fact, Hahn just floated a $140 million bond issue ...http://www.newswire.ca/en/releases/archive/December2008/19/c3574.html
    (please note the interest rate and the rating A-).

    Are you starting to feel a little sick yet?

    Or is it just the ferry food?

  • quarry bay

    3 years ago

    G west

    I hear you loud and clear BUDD Y

  • G West

    3 years ago

    Keep that calculator warmed up

    http://www.bcferries.com/bcferries/faces/attachments?id=84631

    Another big pile of debt - at a slightly better rate of interest....the one from a German source...Guess the hedge fund lenders are a little less popular at 11% eh?

  • G West

    3 years ago

    And from a press release from 'our' corporation today

    “In the face of a significant drop in ferry ridership and the resulting adverse impact on revenues, we must act to reduce the company’s management and administrative costs,” stated Hahn.

    “To date, we have transitioned approximately 35 management and administrative positions, including several senior management and director level positions. While no front line
    or ship based employees are directly impacted at this time by this corporate restructuring, further changes and possible lay-offs are anticipated in shore based positions including unionized staff.

    BC Ferries is one of the leading ferry services in the world and we are committed to proactively aligning our costs with the marketplace during these uncertain and turbulent economic times,” said Hahn.
    Due to the sensitive nature of these reductions, BC Ferries is not disclosing details and the names of employees affected.

    Emphasis added!

  • quarry bay

    3 years ago

    Campbell and Hahn are idiots!

    Thanks for the link G west

    Here we are,borrowing money from a German bank,all in the name of employing German shipbuilders!
    If ever there was a time to re-think employing BC ship builders is now,Campbell wouldn`t want to put a dent into the 45.000 thousand people that are losing their job this year in BC or the 10s of thousands of BC workers that have already lost their jobs!

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