|
|
Post by Low Light Mike on Jan 19, 2009 8:19:08 GMT -8
This may generate a fair bit of discussion, especially as more details become known. So here it is in its own thread: ======================= www.canada.com/nanaimodailynews/news/story.html?id=32d94327-51e0-48bb-bb1e-7619d88ec635B.C. Ferries cuts 35 positions, says source
Layoffs included terminal managers, executives in Victoria Daily News Monday, January 19, 2009 B.C. Ferries last week eliminated as many as three dozen positions within its corporate structure, a source has told the Daily News. The source, who requested anonymity, said the layoffs happened late last week and included terminal managers and executives at the B.C. Ferries head office in Victoria. There are no indications that any staff within the B.C. Ferry and Marine Workers' Union were part of the layoffs. On the B.C. Ferries website on Sunday, the most recent new release, from Dec. 19, announced $140 million in bond financing. Critics have said that the semi-private company may be close to serious financial problems. "They are in dire straits," said the source. Referring to the layoffs, he said, "it's big." B.C Ferries spokeswoman Debra Marshall, reached Sunday evening, was unable to comment. Marshall said she had to refer questions to someone else in the B.C. Ferries communication section, possibly Mark Stefanson, Vice-President, Corporate Communications. Plans for the B.C. Ferries to use the Duke Point to Tsawwassen run as a "drop trailer" route, to compete for freight business, are believed to still be going ahead. © The Daily News (Nanaimo) 2009 ========== |
|
|
|
Post by gordon on Jan 19, 2009 8:38:01 GMT -8
How does the possibility of having Route #30 used as a drop-trailer service affect the current operations of the route for general traffic?
|
|
|
|
Post by landlocked on Jan 19, 2009 8:41:44 GMT -8
During the 18 months subsequent to the formation of BCFS, staffers claim that inter-office memos announcing the numerous appointments to the marketing group, newly converted exempt positions as Terminal Managers, etc, etc, were being made. Apparently these notices were constant and what seemed to be never ending. It doesn't come as a surprise that these types of changes are being made now.
With respect to the $140M bond issue, what kind of a surprise is that? You can't add over $700M worth of new equipment without raising the money somehow can you? These bond issues are nothing more than financing new equipment.
What is most disturbing is the entry of BCFS in the drop trailer business. There used to be one operator, then the Port of Nanaimo set up another by giving them access to their barge terminal, and now there will be yet another entry in the drop trailer business to dilute the market share even further. Hahn told the President of Seapsan that he better not even THINK about competing with BCFS by putting the Pacificats back to work and what does he do but use government money to ruin a business that private enterprise is adequately providing. It can't be that he's hoping to grow market, it would appear to be solely about stealing market share from others.
|
|
|
|
Post by Northern Exploration on Jan 19, 2009 11:20:17 GMT -8
I will search for it but Hahn at one point alluded that once the corporation was up and running and fleet renewal underway other changes would result.
For a long time people have been grumbling that BC Ferries was top heavy. So IF that was true this is just good business and may not mean big financial problems. BCFC has been trimming costs in other areas so it only makes sense they are doing it in personnel.
|
|
|
|
Post by ferryrider42 on Jan 19, 2009 11:21:15 GMT -8
A minor point I know, but I believe the correct name is "Deborah Marshall " not "Debra Marshall" as stated in the article.
|
|
|
|
Post by ferryrider42 on Jan 19, 2009 11:26:37 GMT -8
This drop trailer idea that I am hearing about. I imagine it will require some room at each terminal for trailers to sit and wait. Could some of the current work being done at Tsawwassen be in preparation for this?
I haven't been to Tsawwassen for a while myself, so don't really know what is going on there.
|
|
|
|
Post by cobblehillian on Jan 19, 2009 15:56:10 GMT -8
I've been watching the BCF web site for several years and I think it is worth noting something that I have observed, the size of what BCF calls its Executive Team (ET).
2005 - About Us/The Executive Team - 11 members then 13 members
2007-to mid or late 2008 - About Us/The executive Team - 23 members
2009 (early) - About Us/The Executive Team - 6 Members
The size of the ET may represent a good view of how the executives of the company see themselves and their organization. I do not believe there have been any changes in the actual number of senior positions in some time. The reduced 2009 numbers do not represent layoffs but, rather the ET's concern with 'optics', how the public sees things. Perhaps, some positions have received new titles
The current view of things is tempered by several factors.
1.)lower ridership
2.)lower or no change in revenue
3.)Newbuild teething problems/concerns they might be more permanent problems
4.)Steep costs associated with the new ships such as training, equipping with BCF stuff, etc.
5.)Major travel and accommodation costs to inspect, consult, graphics oversight, ceremonies etc. in Flensburg. Also some shipping costs involved.
6.)Fuel cost spikes and an uncertain fuel market
7.)Economic downturn.
8.)Government Intervention - Dec./Jan. fare reduction
9.)Negative press
10.)Pesky advisory committees
11.)Rising Debt-New bond issue and interest payments
12.)Fractious union management relations
13.)The creation of more non-union middle management jobs?
These factors (perhaps individually small, but large in the aggregate) combined with a high fixed cost (+ bonuses) executive team and a high cost board (board appears overcompensated for company size) create a difficult situation. The company needs to act soon on some of these.
As I have mentioned before BCF has escaped the transparency of a publicly owned or investor owned enterprise. We don't have a handle on these costs and there appears to be little published accountability except for annual and quarterly reports that minimally meet generally accepted accounting principles. The costs of much of the above are not easily segregated for examination. The prospectuses for the more recent bond issues aren't even available on the web site.
Unlike the Baltic operators, three of which are close in size to BCF (two have market traded shares/one privately held) BCF does not have to report executive salaries, board costs, or generally breakdown any costs as finely as their European cousins. For a publicly owned de facto public utility we sometimes don't get the accountability we perhaps should.
|
|
|
|
Post by ferryrider42 on Jan 19, 2009 18:34:07 GMT -8
Chek News had some more details on this story. 32 individuals where laid off, while 3 other took early retirement. Management makes up around 400 people, so these cuts are less then 10% reduction. It is expected that around 25 union positions will also be cut; 10 of those positions are still unfilled. The company is attempting to save about $15 to $20 million over the next year through these and other cost saving measures. A more formal news release is expected tommorow from BC Ferries. Video Available www.chtv.com/ch/cheknews/video/index.html |
|
|
|
Post by Low Light Mike on Jan 19, 2009 18:58:31 GMT -8
|
|
|
|
Post by ferryrider42 on Jan 19, 2009 19:18:20 GMT -8
BC Ferries lays off staff, cites ridership slide and economic downturnPaul Walton, Canwest News Service
PWalton@nanaimodailynews.com
Published: Monday, January 19, 2009NANAIMO - B.C. Ferries is pointing to a drop in ridership amid the economic downturn as it cuts about 35 people from management ranks and considers more layoffs. B.C. Ferries CEO David Hahn is expected to comment Tuesday on what's happening at the company. A member of the board B.C. Ferry Services Inc. said the job losses reflect tough times. Nanaimo's Tom Harris, vice-chairman, said the board was given no details and were only advised after the fact. "It's no secret we're in difficult economic times, it is affecting B.C. Ferries as much as it is affecting other companies," said Harris. "These were steps taken by management beforehand . . . but we were advised Friday that cost-cutting steps were being taken. I don't know any company that isn't looking at cutting costs." A source, who spoke on condition of anonymity, said about 35 people have been laid off or reassigned. They include executives at the head office in Victoria and senior managers at the terminals. B.C. Ferries spokesman Mark Stefanson said he could not comment in advance of Hahn making a statement on Tuesday. A memo from Glen Schwartz, executive vice-president of human resources and corporate development, said Monday that cost cutting measures are very much under way. In two memos, he lists 19 people who are being let go. "This past fiscal has been especially challenging due to the adverse impact of the economy on ridership and operations. In response, the HR and CD groups have embarked on a vigorous program of cost reductions and deferred programs," said Schwartz. Richard Goode, acting president of the B.C. Ferry and Marine Workers' Union, said that so far none of the 3,800 unionized members had been laid off but that Hahn may announce such cuts Tuesday. Goode expected any cuts would be among shore-based workers since Transport Canada regulations require a different process before ship-board staff are let go. Goode said there are about 500 management staff, which has grown since 2003, when the Coastal Ferry Act was implemented. He said the company also exempted about 350 former union staff and hired for many new management positions since then. "These guys have been bringing in managers left and right," said Goode. Gary Coons, NDP MLA for North Coast and ferries critic, said he has been trying to raise the issue about the kind of hiring being done by B.C. Ferries. Coons said that two positions created by B.C. Ferries in recent years were menu and recipe development manager and elevator/escalator systems manager. As a private company, B.C. Ferries is exempt from public scrutiny through freedom of information legislation. Coons estimates that more than 100 management positions were added to B.C. Ferries in the last 18 months. In that time, ridership has dropped, fuel costs have risen and the debt load for terminal upgrades and new ships has increased. "B.C. Ferries is obviously having serious financial problems, but since Premier Gordon Campbell privatized our ferries, British Columbians are left in the dark - even though we still own the company. I have previously expressed my concern about the exponential increase in management at the corporation with no accountability and no scrutiny. We are seeing the end result of B.C. Ferries out of control," said Coons. Harris said that B.C. Ferries is "adjusting its revenue stream" to meet new challenges. www.chtv.com/ch/cheknews/story.html?id=1195518
|
|
|
|
Post by kerryssi on Jan 19, 2009 22:02:59 GMT -8
I would love to have the job of "Manager of Newspapers" it has existed for many years. Several years ago BCFC was criticised for the size of its management. They fired 50 managers and hired 50 directors who just happened to have the same names. Some of the people fired are a direct result of Vince Ready, the government appointed arbitrator, removing people from union jobs and making them exempted ( non union management employees). In a short time these "Management employees" wind up being fired. Just my opinion of course but there is usually a lot of smoke and mirrors involved in BCFS management.
|
|
|
|
Post by Scott on Jan 19, 2009 22:21:39 GMT -8
That link would indicate that Capt. Capacci has left the company, which is disappointing as some members here have had some good interaction with him. |
|
|
|
Post by Dane on Jan 20, 2009 9:16:19 GMT -8
I don't think anyone is forgetting that.... But I do realize if I ever become an escalator and elevator supervisor (I believe BC Ferries has roughly four escalators in public places) I always stand a chance of being found redundant.
|
|
Nick
Voyager 
Chief Engineer - Queen of Richmond
Posts: 2,078 
|
Post by Nick on Jan 20, 2009 9:58:57 GMT -8
For Immediate Release 09-003 January 20, 2009 BC FERRIES ANNOUNCES RESTRUCTURING AND DOWNSIZING VICTORIA – President and CEO David L. Hahn announced today that BC Ferries has undertaken restructuring and downsizing initiatives that will primarily affect management and administrative positions. “In the face of a significant drop in ferry ridership and the resulting adverse impact on revenues, we must act to reduce the company’s management and administrative costs,” stated Hahn. “To date, we have transitioned approximately 35 management and administrative positions, including several senior management and director level positions. While no front line or ship based employees are directly impacted at this time by this corporate restructuring, further changes and possible lay-offs are anticipated in shore based positions including unionized staff. BC Ferries is one of the leading ferry services in the world and we are committed to proactively aligning our costs with the marketplace during these uncertain and turbulent economic times,” said Hahn. Due to the sensitive nature of these reductions, BC Ferries is not disclosing details and the names of employees affected. ==================================================== www.bcferries.com/bcferries/faces/attachments?id=84669 |
|
|
|
Post by kerryssi on Jan 22, 2009 9:12:39 GMT -8
Considering the hundreds of managers at BCFS letting 35 or so go isn't even a drop in the bucket.
|
|
|
|
Post by ferrytraveller on Jan 22, 2009 16:04:46 GMT -8
kerry, of the 400 or so management positions, are those all excluded positions or does that include some people who are in the union and work in fleethouse behind a desk doing say traffic stats??
|
|
|
|
Post by kerryssi on Jan 23, 2009 8:09:44 GMT -8
Some of them were union jobs that had been excluded from the union by Vince Ready due to the (claimed) delicate (secret) nature of their work. Ironically the work used to be done by union members, who were then excluded, then laid off and guess who is getting to do the work now? Seems to me just an end run by Vince and management.
By the way, since privatization they have hired another 100 managers. I believe the figure was well past 400 before that.
The latest thing I have seen is an estimated 1 manager for every 8 employees. It used to be 1 for 11. 1 to 50 is considered normal.
OOPs, Just re read your post and I was answering about the layoffs. I don't think the excluded jobs were counted as management. They hired people as managers and any union people would be secretaries, file clerks, etc. Definitely no union people in management. The management has continuously fought to get as many union jobs excluded as they can and Vince Ready seems very willing to accommodate them. Those excluded people are not really part of management but they are not in the union, that is why they can be disposed of so easily.
|
|
|
|
Post by Low Light Mike on Feb 14, 2009 21:06:01 GMT -8
|
|
|
|
Post by Northern Exploration on Feb 15, 2009 7:24:27 GMT -8
The reporter is looking for something hidden in all this and may be right. However, the term used is retire. That is different than "resigns to pursue other matters." And if the individuals were indeed moving onto something specific Hahn would not have likely gone out of his way to open the door for a future relationship. It is not at all unusual for individuals with long and productive relationships with organizations, to continue some kind of reduced involved at retirement, such as a consulting relationship. Lots of teachers I know retire on their very lucrative and benefit rich plans and then consult with school boards afterwards. Some companies have borrowed from the Universities and have "Emeritas" positions. I think the title is silly but the idea of ongoing continuity is good. President Emeritas sounds puffy and sometimes it is just an exercise in flattery and ego  . |
|
|
|
Post by Low Light Mike on Feb 21, 2009 12:49:32 GMT -8
• On January 20, 2009, we announced a significant restructuring of our management and administrative staff, with 35 staff including several senior managers and director-level employees being released to date.
Further changes and possible layoffs are anticipated in shore-based positions, including unionized staff positions. These changes have been made in order to align our expenses with our revenues.
Corporate Restructuring
Due to the continuing decline in traffic levels and resulting revenues, we have determined the need to restructure our business to align expenses with reduced revenues while continuing to ensure that safety remains our top priority.
This restructuring is in addition to our other cost savings measures that include deferral of filling staff vacancies and deferring or reducing travel, consulting, marketing, advertising and other discretionary expenditures.
To date, we have released approximately 35 management and administrative personnel, including several senior management and director level employees.
While no front line or ship based employees are directly impacted at this time, further changes and possible lay-offs are anticipated in shore based positions, including unionized staff positions.
These proactive measures, along with other initiatives, are expected to reduce our operating expenditures by approximately $14 million from previously planned levels in fiscal 2010.
Above quoted are from a couple of different places in BCFS's 12/31/2008 MD&A report. Just in case you want an official sum-up and indication of future plans.... |
|
|
|
Post by ferrytraveller on Feb 24, 2009 16:05:04 GMT -8
Well I have a bit of a thinking question for you all. The question is as follows: if you were in a position to make decisions at bc ferries, how would you help cut costs to increase revenue ( because they must try to as per the coastal ferries act) and help make sure none of the union members including terminal attenants are let go to make this happen ?? This is assuming you can't change the coastal ferries act and can't get the government to just give the ferries a blank cheque. Let's see what good, constructive ideas we can come up with!!!
|
|
|
|
Post by kerryssi on Feb 24, 2009 19:19:22 GMT -8
Fire about 500 managers, that will bring it down to about 200 which is still high. Move out of the high rent district in downtown Victoria to someplace more central and cheaper, like Nanaimo. Separate the overhead costs from the costs of the runs, that way you will know where the real costs are which will help you decide what to do next. Ship and terminal costs are basically fixed, the only leeway you have is in overhead. BCFS spends all its' energy trying to change the fixed costs instead of looking at overhead costs.
|
|
Quatchi
Voyager
Engineering Officer - CCG
Posts: 930
|
Post by Quatchi on Feb 24, 2009 21:48:51 GMT -8
The best way to do it is to eliminate the need for revenue.
Personally, Id get rid of Head Office alltogether and just build a little structure at Swartz Bay, plus can half the redundant jobs in H/O. Search for alternative fuels, maintain the vessels to a higher standard to prevent breakdowns and give the public a better feeling about the corporation, and lower fares, so as to allow for more people to afford to make a trip on the ferry in the first place. Then I slowly wait for the government to bail me out or dissolve me back into a crown corporation and make the fleet a publicly owned one. I know it defies the logic of the question, but it is what I would do.
I just cant wait for the government and BCF to realize that this setup they got going doesn't work.
Cheers,
|
|
|
|
Post by ferryrider42 on Feb 25, 2009 21:05:47 GMT -8
Now I don't necessarily like the idea I'm about to present, or know if it violates the ferry act. But for yet another source of income I would sell billboard space on the side of the boats.
Think of a 500foot long COKE billboard pasted on the side of a Spirit vessel, that should bring in an extra $1000 a month.
I'd also consider implementing a pay parking system on all vehicle decks; just cause I have a sick sense of humor.
|
|
|
|
Post by Political Incorrectness on Feb 25, 2009 21:31:13 GMT -8
Now I don't necessarily like the idea I'm about to present, or know if it violates the ferry act. But for yet another source of income I would sell billboard space on the side of the boats. Think of a 500foot long COKE billboard pasted on the side of a Spirit vessel, that should bring in an extra $1000 a month. I'd also consider implementing a pay parking system on all vehicle decks; just cause I have a sick sense of humor. We've got advertisements plastered all over our ferries for various airliners and such. It's just a sign of the times now of days. |
|
.
