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BC Ferries report highlights significant problems ahead

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A new report suggests there could be rough waters on the horizon for BC Ferries when it comes to revenue, sky-rocketing costs and labour shortages.

The document is a revision of a report submitted just six months ago to the BC Ferries commissioner.

“The original plan was informed by the latest financial and economic data as well as forecasts available six months ago,” BC Ferries Chief Financial Officer Jill Sharland said in a statement. “We have updated the four year plan so the commissioner has the best information available on which to base her indicative price cap decision.”

The revised report highlights the changing economic climate and predicts a looming recession will reduce discretionary travel and lower previously forecasted revenue by $14 million in the fiscal year 2024.

It also says inflation will increase the price tag of the 12-year capital plan by $229 million.

The revised report comes on the heels of $500 million cash injection from the province at the end of February intended to minimize fare increases.

"Our intervention with BC Ferries was to ensure predictability of fares for people that live in ferry dependent communities,” said Premier David Eby.

Of all the issues identified in the report, the staffing shortages will likely have the most immediate and noticeable impacts for members of the travelling public.

In recent years, unplanned cancellations due to a lack of workers have frequently frustrated travellers.

“We also continue to struggle with attracting staff into positions that are key to keeping the vessels sailing,” Sharland said in the statement. “It’s a global problem and one for us that is heightened by a widening gap between what we are able to pay and market benchmarks.”

According to the BC Ferry Marine Workers Union, workers are quitting BC Ferries at a rate of about 600 per year.

"It's telling that people don't want to work there anymore,” said Dan Kimmerly, president of the union’s ship’s officer component. “It's not the job it was in the '90s when base pay was four times the minimum wage and people were trying to get a job at BC Ferries.”

He added that about 30 percent of new hires quit the job within a few months of being hired – mainly because of forced overtime and cancelled time off.

"The morale's quite low because of the fact that people's lives are being affected significantly by the job,” Kimmerly said.

Compounding the staffing issues, reduced revenue and increased costs, deferred maintenance for some vessels and terminals lurks beneath the surface.

Add it all up, and it’s easy to see BC Ferries sailing into turbulent waters in the years ahead.

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