BC Ferries choppy waters of concern to MLA Coons

As we outlined in an earlier posting on our Podunkian portal, the recently announced layoffs by BC Ferries and continuing fears of more to come have only served to confirm for the North Coasts MLA and NDP Ferries critic that there is some troubled times ahead for the Ferry Corporation.

Gary Coons outlined his concerns for the Daily News in its Wednesday edition, providing the local paper with many of his favourite talking points when it comes to the fate of the Ferry fleet on the coast of BC.

Coons has long been expressing his frustrations with the current management of the Corporation and with the Liberal government for what he calls their tendencies to leave British Columbians in the dark over the issues and future for the Corporation.

His latest assessment of the situation at BC Ferries was featured as the front page headline story in the Wednesday paper.

BC FERRIES LAY-OFFS ANGER, WORRY NORTH COAST MLA
Gary Coons says he fears Prince Rupert's shore workers could be in line for the chop

By George T. Baker
The Daily News
Wednesday, January 21, 2009
Pages one and two

North Coast MLA Gary Coons said that the laying off of 35 BC Ferries managers shows that the provincial ferry operator is in serious financial trouble. And he wonders if Prince Rupert-based shore workers will be next in the firing line.

BC Ferries has restructured its managerial set-up while letting go staff in an attempt to right the ship. And it looks like it might set its sights on shore-based workers next.

"BC Ferries is obviously having serious financial problems, but since Campbell privatized our ferries, British Columbians are left in the dark - even though we still own the company," said Coons.

Coons has said in the past the privatization of BC Ferries has been a dubious move given that the only shareholder in the company is the BC government.

He has also criticized the fact that 100 managers have been hired during the past year and a half.

"I have previously expressed my concern about the exponential increase in management at the corporation with no accountability and no scrutiny.

"We are seeing the end result of BC Ferries out of control."

BC Ferries President and CEO David Hahn concurred with Coons that finances were unstable but blamed the worse turn of fortunes on lower ridership levels, rather than political policies.

"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 in a press release.

However, Hahn had a different take on the nature of the layoffs, suggesting that they have been "transitioned" rather than placing people on the unemployment line.

"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," said Hahn.

"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.

Meanwhile, BC Ferries was busy announcing that it had finalized the $108 million loan agreement for the Northern Expedition.

The money will be used to purchase the ferry from ship-builder Flensburger Schiffbau-Gesellschaft.

"We are pleased that BC Ferries was able to complete this significant financial transaction at favourable terms despite the continuing uncertainty in global financial markets," stated BC Ferries' Chief Financial Officer Rob Clarke.

Cost cutting measures put employees on the dock waving goodbye at BC Ferries

Declining revenues and troubled economic times have combined providing for a storm of fiscal concern, one which BC Ferries has answered with job cuts and early retirements to its management levels.

Monday was a rather busy day in the human resources world as the Ferry Corporation reduced the number of directors on their board, and reduced the numbers working in the management and administration departments by 35, engaging in a process that BC Ferries describes as a process which is “aligning our costs with the marketplace during these uncertain and turbulent times.”

While the positions eliminated on Monday were all staff posts, there are concerns that future reductions may reach into the unionized work force, most of which it is suspected would have to be shore based workers, as Transport Canada has strict staffing requirements in place for ship board personnel on vessels along coastal waters.

The NDP critic for Ferries, North Coast MLA Gary Coons has long been concerned about the developments at BC Ferries, pointing out that hiring has been a frequent topic of interest over the last few years since the company went from being under government contro,l to a quasi private state, all be it one dependant on public funding.

Coons points to a number of recent jobs created or shuffled over the last few years by the Ferry Corporation, which have been exempt from any form of public scrutiny or oversight by the province.

Under its private status, hiring decisions have evolved as an internal process, seemingly with little accountability (or interest it seems) required to the provincial government, even though one would think that they should have an interest in the state of the provinces fleet of coastal transportation vessels.

For Coons and the NDP that apparent lack of accountability is putting the entire coastal system at risk, setting the stage for more layoffs in the future and even schedule reductions as the financial clamp tightens around the Ferry Corporation.

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BC Ferry President David Hahn, takes exception to the recent and past statements of Mr. Coons, claiming that the Corporation is hardly secretive and that their books are open, that tone of debate continues on with what is becoming a regular exchange between the two over issues regarding the current status of the Ferries as a quasi private operation.

It has long been a desire of the NDP to see the Corporation returned to the domain of the provincial government, the suggestion being that the transportation network is far too important to the people of the province, to be allowed to remain in the rather secretive world of private enterprise.

Critics of that thought point out that the Ferry Corporation has always been a handful for whomever is in charge, be it as a government agency or in its current configuration.

The current fiscal trouble, when combined with challenging employee/employer relations and recent maritime incidents, only seem to add to the belief that it is a corporation that needs a full review. An overall assessment and audit, of where things stand at the moment and where they may be going in the near and far term. What seems to be needed rather quickly is an item by item examination of what is working, what isn’t working and what is truly best for the Corporation, its customers and province’s taxpayers.

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For now though it must be getting a little uneasy for those that work for the Ferry Corporation, a memo obtained by the Vancouver Province provided the kind of statement that won't do much to soothe the workforce, as management advises that "over the next few weeks, further adjustments in roles and responsibilities may be required as we implement these changes."

While the employees begin looking over their shoulders over their job security and wonder if they'll be one of the "changes", the process of fleet replacement continues on.

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At the same time that they were handing out their layoff notices on Monday, the Ferry Corporation was also announcing the finalization of its loan for the soon to be in service Northern Expedition.

A 108 million dollar loan agreement was just completed with a German bank, providing for a twelve year loan with an interest rate of 2.95 per cent, with the I’s dotted and the T’s crossed on the loan, the Northern Expedition will now soon set sail for North America, with an anticipated departure date from its German birthplace set for January 29.

What remains to be seen, is how many will be left on the employment rolls at BC Ferries to welcome the new vessel to the fleet.

Victoria Times Colonist--Ferries CEO confirms staff layoffs, plus company signs $108 million loan for new ship

Vancouver Province-- B.C. Ferries confirms layoffs, warns of more to come

Vancouver Province-- B.C. Ferries lays off managers over tough economic times

Vancouver Province-- Some questions about the BC Ferries cutbacks

Vancouver Province-- BC Ferries' statement on the cuts

Vancouver Province-- Management heads roll at BC Ferries: The memos

Vancouver Province-- And some good news for ferry riders

Vancouver Province-- More loan payments for BC Ferries

Vancouver Sun-- BC Ferries cuts up to 36 jobs

The Tyee-- Hahn: drop in riders, revenue force BC Ferries job cuts

CHEK News-- Ferry Layoffs