B.C. Ferry Services Inc. president and CEO David Hahn today confirmed in a press release that the company has already chopped 35 jobs and there are more cuts to come.
The cuts so far are mainly to management and administrative positions, the release said. “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,” it said quoting Hahn.
While the release made reference to "turbulent economic times", it quoted Hahn saying the cuts were due to fewer people riding the ferries: “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."
The announcement leaves a number of key questions unanswered. Why now? What will the company pay in severance? How much money will it save? Just how bad is the financial picture? With fares set to jump up again on February 1 after a two-month discount, what steps are being taken to raise ridership?
A call to B.C. Ferries' media line asking if Hahn would be taking questions today was not returned by publication time.
The Tyee reported yesterday that NDP ferry critic Gary Coons said the job losses show B.C. Ferries is in serious financial trouble.
B.C. Ferries is a private company owned by the B.C. government, which will spend $168 million on the company's services this fiscal year.
Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.
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G West
3 years ago
And here's the start of the promos
Nice! some routes, as always, are more 'equal' than others.. Would it be fair to say there might be 'negative' balances in all their 'hedge' accounts just now?
sunshine coast girl
3 years ago
David, David, David....
How many times do we have to tell you that ridership is not down due to the economy? It is down because you have made the BC Ferry "Experience" (If you think taking BC Ferries is a question of getting you from Point A to Point B, let us introduce you to the rest of the alphabet) too expensive for us mere mortals and visitors to our fair province. Read the stats from December and January. I guarantee that you will see a substantial increase in ridership due to the discounted fares. Keep the fares at a reasonable level and your ridership levels will likely remain similar for the rest of the year. And so, your revenue will rise.
Oh, but it's also a good idea to get rid of some of your bloated management levels.
It sure seems to be hard to get that point across to these bozos.
RossK
3 years ago
Why now, indeed?
Today Mr. Hahn says:
"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."
But here's the thing......
In the face of sharply rising fares, ridership was already declining in the last quarter of 2007.
How do we know this was happening back in the 'boom times' (ie. before Mr. Hahn et al. were hit by 'turbulence', economic or otherwise) ?
Because BC Ferries published a report stating it was thus - a report that is no longer available on their website.
Luckily, however, this reqport was duly reported on, by Mr. MacLeod himself, last spring.
Thus, I would certainly hope that when Mr. Hahn makes himself available to those members of the media he is particularly fond of giving large amounts of time to (see Baldrey, Keith but perhaps not Montgomery, Chris)that they will ask him the following question.
"Mr. Hahn, when, exactly, did ridership begin to fall, and what relationship did that fall have with the increase in fares that you and your managers imposed during that period?"
.
Luke Skywalker
3 years ago
BC Ferries...
NADA.
Reason for decrease in traffic ridership? "It's the economy, stupid". Commcercial rig traffic has dropped off as a result.
And a sound financial arrangement at that.
Fan of reality
3 years ago
on those German loans
Luke, did it occur to you those favourable German loans were granted in a country with a government that actually promotes and heavily subsidizes shipbuilding? That the ferry was built in a shipyard that had gone belly up and was rescued with government money, and if not directly, via the sleight of hand involving having a bank there step up and do what no Canadian bank would?
You might want to look at the tangled web of financing surrounding those U-boats before you wank.
You might also want to consider that A- and A (low) as a bond rating is the equivalent of "crap", despite the company spin.
Ridership was dropping off before the economy tanked. Look up the facts. There's a problem here that's bigger than you can wrap your mind around, but you have a good mind, you should try.
quarry bay
3 years ago
Luke
"and a sound financial arrangement at that"
A german bank giving a loan to BC ferries so it can buy a German built ferry!
So even as BC is in it`s worst financial predicament since the 1930s/ with job losses in the thousands each month,with BC workers fleeing the province in droves in search of employment,Gordon Campbell can`t see the value of having a ferry built in BC and financed by a BC Bank or credit union.
Obviously there aren`t very many brain surgeons in Campbell`s cabinet or amongst their paid media spinners.
NaNaTrish
3 years ago
The World According to Hahn
Well, there is no sense in visiting this site anymore. David Hahn has decreed that we "can't go by anything the Tyee publishes" and that it's all "political nonsense". Oh, and by the way - Gary Coons, the ferry critic "doesn't know how to read a financial statement" and "doesn't know what he's talking about".
How did BC ever manage without Mr. Hahn? Can you spell A-R-R-O-G-A-N-T?
mcdull
3 years ago
yes
Oh yes it will come to fruition that In a couple of years Sell it Off Campbell will say that with BC ferries mortgaged to the hilt , in debt and poor ridership we can't afford nit privatize it.
happy
3 years ago
mcdull
I thought in two years Carole will have turned it back into a Crown Corporation
Wilfred Laurier
3 years ago
Evidence
I would like the NDP critic for Ferries to provide his source that would back up his claim that BC Ferries is in "financial difficulty."
quarry bay
3 years ago
Wilf
You want the critic to provide proof of his claims yet you take everything that Hahn says at face value!
Obviously you didn`t read the article, again,do you not remember the 20 million dollar cash infusion by Campbell to BC Ferries last month?
Or maybe you are unaware of the 1.36 billion dollar debt accrued in the last 5 years by BC Ferries.
Perhaps you should spend a little while bouncing through the articles on the HOOK WEBSITE,though EDITED FOR INSULTS -- MODERATOR
PeteL
3 years ago
Trish wrote "Well, there is
Trish wrote
"Well, there is no sense in visiting this site anymore. David Hahn has decreed that we "can't go by anything the Tyee publishes" and that it's all "political nonsense".
Did David actually say this? Can you quote a source? I know he did call a Friday afternoon news conference once to refute a story published in The Province.
If he did say this of The Tyee then kudos.
happy
3 years ago
Hi quarry
You're right about the accumulated debt.
But I'm sure you recall that in the 90's the NDP had to "write off" over a Billion in BC Ferry debt because the corporation was crashing financially.
That "write off" was just a shell game of course, the debt just moved from one set of books to another.
Just a different way now of doing the same old
NaNaTrish
3 years ago
PeteL: Yes David Hahn said
PeteL:
Yes David Hahn said it. He said it on the CBC this afternoon. Do you think I made it up? GOOD GRIEF!
come again
3 years ago
public transit
I think the 'company' just forgot their core audience and what the service really is. Any company will fail if it does so.
This 'company' has been badly run and lost it's focus. Who is responsible? Hahn, and his manager Campbell. That's just business fact.
PeteL
3 years ago
No Trish
Not at all, I just wanted to know where he said it. I've seen him play this game before. Shoot the messenger. I suspect he will be on with Bill Good tomorrow.
Thanks for the info.
G West
3 years ago
NaNa Trish
Thanks for that report...nice to know that something has actually penetrated the inner sanctum.
Now, can we get back to that accumulated debt and those poorly designed ferries....and the cancelled sailings?
And the nonsense about ridership being 'down' because of the economy.
quarry bay
3 years ago
Happy
I agree,the BC goverment should infuse capital into BC ferries,instead of setting it up to be sold.
G West
3 years ago
happy
That - the other thing you pointed out - about your being 'smart' was a compliment - not a dig.
And, remember this?
"As far as I'm concerned, when you're right, you're right. And I'm right."
The point is, I wasn't trying to insult you, in fact, I think you do try to stick to issues and - compared with many of the folks I cross swords with here - that's a pleasant change.
Now, back to the Ferry Corporation: Can you explain why the arrangement Hahn's made relative to the head office sale and subsequent leaseback makes any sense in this economy? If the corporation is borrowing funds so it can help the Jawl Brothers construct a building in downtown Victoria I'd say it's not really serving its proper function nor its shareholders who are, taking everything into account, the people of BC.
Luke Skywalker
3 years ago
Fan of reality...
And that credit rating is not too far off from those for the Province of Quebec and the Maritime provinces... but I digress. When one gets into the B or C ratings, then one is looking at high risk financial junk.
True. According to documents filed with Sedar, ridership was off 4% for the year ending September 30, 2008 compared to the same period one year earlier. Fuel surcharges perhaps?
In any event during that same fiscal period, revenue increased from $379,925,000 to $403,993,000.
But the economic situation since October has changed considerably.
BTW, does anyone here even know that former New Democrat premier Dan Miller and someone from the CLC, among others, sit on the board of directors for BC Ferry Services Inc.? ;)
happy
3 years ago
West
In answer to your question. No, I can't explain it. Real estate and finances are not my thing and I don't offer comments on issues I know nothing about.
Mechanical things are my thing.
Appreciate the clarification
G West
3 years ago
luke
You need to stop living in the past.
Dan Miller was premier of BC for how long?
The 'Board' of BC ferries is a nullity - the strings are pulled from the Premier's Office..... The added layers of corporate bureaucracy are nothing but wastes of time, money and space - just like the menu consultants hired to give contracts to characters like Ron Toigo...among other things.
Any corporation meant to serve the public that spends the kind of efforts Hahn's outfit has on chasing nickels from short term parking is sick. Period. Not very different, on balance, from sanctioning the use pay toilets.
In my view.
Stump
3 years ago
name the boats
I know we did this the other day, but may I suggest
"I-O-U Boats" has just the kind of poke in the eye with a sharp stick ambience that David Hahn deserves.