BC Ferries has reassessed its latest four-year plan to include new challenges the service is facing, the company said.
A 41-page report has been submitted to the independent BC Ferries Commissioner, updating the corporation’s previous plan which was provided six months ago.
The report outlines challenges including a forecasted mild recession in 2024, an expected decline in ferry traffic, staffing issues and increased maintenance costs.
This has led to 15 projects being cancelled and mid-life upgrades being pushed back, the report said.
The bargaining unit that represents navigating and engineering officers said the challenges the company has acknowledged are something the workers have known for “quite some time.”
“It wasn’t surprising. These are things we’ve known for a long period of time and seeing these issues and plans come to light is not surprising,” said Dan Kimmerly, Ships’ Officers’ Component president.
A big issue for the ferry service is the recruitment and retention of workers, something Kimmerly said is partly due to salaries and worker treatment.
“Other industry jobs are roughly 30 per cent more pay — the other big thing is the treatment of the employees,” he said.
“Currently, BC Ferries have continually scheduled overtime. People are having to continue working and working and working. Fatigue is kicking in and the job is not what people thought it should be.”
Revisions to the company’s four-year plan will target three key areas:
- BC Ferries traffic outlook has been updated to reflect the growing certainty of a mild recession occurring during its fiscal 2024
- Capital program and maintenance amid continued inflation and higher costs
- Labour and talent development to include a list of necessary actions to ensure required crew levels are secured
BC Ferries issued a statement regarding the report on Wednesday.
“The original plan was informed by the latest financial and economic data as well as forecasts available six months ago. We have updated the four-year plan so that the commissioner has the best information available on which to base her indicative price cap decision,” said BC Ferries’ chief financial officer Jill Sharland.
“The performance term rate-setting process relies on the most accurate financial information available. Since submitting our initial plan in September, the continued pace of inflation … as well as the real possibility of a mild recession in fiscal 2024 are important factors for the Commissioner to consider.”
The B.C. government took steps to lower fare increases through a $500-million investment, which was announced last week.
“Our intervention with BC Ferries was to ensure predictability of fares for people that live in ferry-dependent communities,” B.C. Premier David Eby said on Wednesday.
“Our goal is fare stability, but I think we are going to see the impacts of the pandemic for many years to come.”
The investment will also support greenhouse gas emission reductions by electrification of vessels and other initiatives to “green the fleet and operations.”
“BC Ferries is grateful that the Province has recognized the complexities of running a ferry company of our size. It will aid in addressing inflationary pressures and required investments in the ferry system,” Sharland said in an email.
“As more details become known about the $500 million from the government, we will get a better sense of the impact of the Province’s investment.”
The revised plan has been posted on the commissioner’s website for public feedback. The independent commissioner is expected to make a final decision on the “Performance Term Six price caps” by Sept. 30, the service said.