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

Komatsu announces plans for $40M, 85k-square-foot facility in Sparwood

Komatsu Mining Corp. has announced plans to develop a new 85,000-square-foot sales… Continue reading

Former Fernie Ghostrider re-signs with Vancouver Canucks

Josh Teves has signed a two-year contract with the NHL team

Motor vehicle incident in Sparwood results in death of dump truck driver

An individual has died after the dump truck they were driving went… Continue reading

Fernie chainsaw carver wins big at Logger Days

Michael Penny placed 3rd at Powell River Logger Sports, last weekend

UPDATED: RCMP confirm one death in accident

Two motorcycles ran into the back of a vehicle towing a boat trailer on highway near Cranbrook

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

VIDEO: Man found dead near B.C. teens’ truck could be linked to a double homicide

RCMP said they are looking for Kam McLeod, 19, and Bryer Schmegelsky, 18, of Port Alberni

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Family of missing B.C. senior with dementia frustrated with situation, heartened by community support

Nine days since Grace was last seen the question remains: ‘How can an 86-year-old just disappear?’

B.C. removes personal limits for bringing home out-of-province alcohol

Previous relgulations placed limits on the amount of liquor that B.C. residents could bring home

Unsealed record suggests U.S. man convicted of murdering Vancouver Island couple left DNA on zip tie in 1987

William Talbott is set to be sentenced Wednesday in the murders of Jay Cook and Tanya Van Cuylenborg

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

VIDEO: Bystander training gains traction as tool to prevent sexual harassment, violence

Julia Gartley was sexually assaulted after an event, and no one stepped in to help

Two brands of ice cream sandwiches recalled due to presence of metal

The Canadian Food Inspection Agency issued a recall on Iceberg and Originale Augustin brands

Most Read