Hahn announces exit from BC Ferries

BC Ferries CEO David Hahn is leaving his post at the end of the year, part of a cost-cutting move that freezes salaries and reduces other executive salaries as the province's ferry service endures a slowdown in traffic.

BC Ferries CEO David Hahn

VICTORIA – BC Ferries CEO David Hahn is leaving his post at the end of the year, part of a cost-cutting plan that freezes wages and reduces other executive salaries as the province’s ferry service endures a slowdown in traffic.

Hahn’s million-dollar salary makes him the highest-paid provincial employee, and the BC Ferries board’s decision to increase his pension added to a storm of controversy that overshadowed the performance of the ferry service.

BC Ferries board chairman Donald Hayes confirmed that quitting with a year left on his contract means he will be paid no severance. Hahn said he made the decision to go early, and he also forgoes salary as well as taking a reduced pension.

Hahn has argued that a drop of three to four per cent in this year’s BC Ferries traffic is not a response to high fares, but fuel costs, the U.S. slump and a high Canadian dollar that have also reduced traffic at B.C.’s free inland ferries and airports.

The B.C. Ferries Commissioner is reviewing the government’s user-pay mandate for ferries, which has been in place for nine years and led to steeper increases on the minor routes. Until that review is complete and fares are set, Hahn said the company will cut costs by $11 million to offset an anticipated loss of $20 million this year.

Cost-cutting moves include a two-year wage and salary freeze, hiring freeze on non-essential positions, “select early retirements,” reduced use of contractors, elimination of charity and community donations and the cancellation of arena advertising for Vancouver Canucks games, BC Ferries said in a statement.

Transportation Minister Blair Lekstrom intervened in May to cap ferry rate increases at 4.15 per cent for all routes next year. A preliminary ruling by the commissioner had indicated rates for smaller and northern routes would go up eight per cent.

The Coastal Ferry Act currently requires BC Ferries to reduce the subsidy paid to keep smaller ferry routes running, and prevents BC Ferries from using revenue from its large, busy routes to support service to smaller islands and communities.

Lekstrom said the ferry rate review will focus on affordability for ferry users and the impact of rates on tourism and other business in ferry-dependent communities.

Long-time civil servant Gord Macatee took over as B.C. Ferry Commissioner this year, and his review is to make recommendations in early 2012 about changes to the legislation.

Largely in response to public anger over Hahn’s salary, in 2010 the B.C. government passed amendments linking BC Ferries executive salaries to those of other public sector executives.

Just Posted

UPDATE: 5 injured in plane crash following Abbotsford International Airshow

One in critical condition in incident involving vintage plane

District extends State of Emergency another week

There’s lots of work ahead, but today was a good day: BC Wildfire Service

B.C. Wildfires 2018: Thousands prepare to leave their homes at a moment’s notice

Northwest B.C. and Cariboo seeing most fire activity in province as crews battle 490 fires

Terrace-area hiking trail closed due to grizzly activity

Closure of Gunsight Lake Trail expected to last one week

Telegraph Creek wildfires merge into one

Wind shift offers chance to secure southern flank of 28,000-hectare blaze

A look at B.C. wildfire smoke from space

NASA provides a timelapse of smoke covering B.C. from space

Child dies in boating incident in Okanagan

A North Vancouver family was boating on Kalamalka Lake in Vernon when the incident occured

B.C. Wildfires 2018: Province calls for federal aid

More fires have burned in B.C. already this year than did in all of 2017

Kayak in Indian Arm waters off B.C.’s Deep Cove and feast on famous doughnuts

About a half hour drive from Vancouver, Deep Cove is a great kayaking spot for locals and tourists

Child, 4, attacked by cougar near Fernie

The BC Conservation Officer Service said it happened while the family was fishing

Trans Mountain pipeline protesters practise resisting police at Camp Cloud

Last week, a Supreme Court judge granted the City of Burnaby an injunction ordering protesters to remove everything from the site

Gun used in Fredericton killings is legal, man had licence

Police Chief Leanne Fitch said the long gun is commonly available for purchase, and is not a prohibited or restricted weapon

Ontario will sell pot online when legalization comes in the fall

There are further plans to have pot in private retail stores in early 2019

Woman missing after car swept away by mudslide near Cache Creek

A search is now underway for Valerie Morris, who has been missing since the afternoon of August 11.

Most Read