BC Ferries Management and Operations

BC Ferries would have you believe that cutting services is the only way they can improve their financial situation. They have neglected to mention or consider reducing their top-heavy management expenses as part of their cost-saving efforts.

How does BC Ferries compare to the neighbouring Washington State ferry system – which carries more passengers and vehicles per year?

  • The President and two senior Vice-Presidents of BC Ferries make a total of $1,547,000 (2012). The President and top two Vice-Presidents of Washington State Ferries make a total of $430,000.
  • The BC Ferries Comptroller earns $189,000, 36% more than the Comptroller General of the entire BC Government.  BC Ferries’ VP of Information Technology earns 100% more than the head of IT for the BC Ministry of Health, which has a budget 25 times bigger than BC Ferries.
  • Thirty years ago BC Ferries ran 23 routes with 120 managers. Today they have only 2 more routes, but employ 600 managers.  Washington State Ferries gets by with 43 managers.
  • Washington State Ferries employs 1 manager for every 40 employees. BC Ferries employs 1 manager for every 7 employees.
  • BC Ferries spends about $12 on management and administrative overhead costs for every $1 spent by Washington State Ferries.
  • BC Ferries provides free passes to employees, former employees, their families, contractors to the company, former politicians, and other personages amounting to a value of over $5 million in 2010.
  • BC Ferries’ bloated management structure is consuming $64 million in compensation annually.

A 9.8% reduction in management compensation would save $6.3 million per year, or the entire $18.9 million BC Ferries wants to save by 2016.

Why didn’t BC Ferries consider any internal cost-saving measures, instead of cuts to the services that actually bring in revenue?

 

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