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?