NDP leader Adrian Dix says the B.C. Premier and Transportation Minister are directly responsible for the six-figure bonuses for BC Ferries executives.
Dix says the bonuses contradict government’s belt-tightening budget policies.
Last week it was revealed that for the fiscal year ending March 31, President and CEO Michael J. Corrigan received an “incentive plan” consisting of $64,421. His total compensation amounted to $563,000.
Meanwhile, executive vice president Glen N. Schwartz made a total of $491,643. His annual bonus constituted $127,008 – up from $62,710 in 2012.
The other executive vice president Robert P. Clarke made a total of $492,207 and a bonus of $133,711 – up from $60,352 the year before.
In April of this year, BC Ferries hiked its rates by four per cent, the first of three planned increases. The corporation has also been struggling with its ridership numbers.
“It does not make sense to be giving six-figure bonuses when ridership is going down and fees are going up. I don’t think it makes sense to people,” says Dix.
The New Democrat leader says the bonuses hurt the credibility of BC Ferries and government needs to address this issue.
Dix also says he does not buy the argument that BC Ferries needs to stay competitive and needs to issue high bonuses to retain best workers.
“The deputy minister of health makes half as much as the President of B.C. Ferries,” says Dix. “Deputy Minister is responsible for the health care system that is significantly bigger and better than the B.C. Ferries. In comparison to other public sector executives, this is large compensation at a company, which is losing market share and increasing rates.”
In the phone interview with Global News, Transportation Minister Todd Stone said he understands why there is public outrage.
“We really believe that these bonuses are sending the wrong message,” said Stone.
The minister says he will be meeting with the board chair for BC Ferries in September to discuss the situation.
Stone says BC Ferries has existing work contracts in place and has to honour those agreements. He also says BC Ferries has been making good process in cutting down total executive compensation pay, but there is more work that needs to be done.
“Certainly people are frustrated,” says Stone. “We were elected on a platform that was pretty clear in that it focused on jobs and respect for the taxpayer… and now there is a level of restraint across the government. Certainly, this would appear to be incongruent with the times. The bonuses do send the wrong message and we need to fix this moving forward.”
But Dix says the Liberals have been in power for 12 years, and could have made the necessary changes years ago.
“They had the Ferry Act before them a few years ago. So if they want to take action, they can take action. It is just completely disingenuous.”
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