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

B.C. reservists gather for military communications training in Chilliwack

Canadian Army’s communication skills are used in battle as well as domestic emergencies

VIDEO: ‘Heroes’ rescue teenager trapped in vehicle in water-filled ditch in Chilliwack

Two men sprang into action, holding 17-year-old’s head out of water as they pried open door

Sarah Wark rallies to beat Prince Edward Island at Scotties Tournament of Hearts

Wark wasn’t at the top of her game, but her team did enough to improve to 6-3 overall.

GW Graham junior boys play underdog role at basketball provincials

One of two at-large seeds in the 32 team field, the Grizzlies face a tough opponent out of the gate.

Unfinished business for GW Graham basketball Grizzlies at AA provincials

GWG’s senior girls squad advanced to the final before losing in 2018 and look to win it all in 2019.

Sell regulated heroin to curb B.C.’s overdose problem: report

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

B.C. legislature moving suspended staff controversy to outside review

Whale watching, Seattle Mariners trips billed as emergency preparedness, Speaker Darryl Plecas says

Two boys saved after falling through ice in Coquitlam

RCMP say a Good Samaritan pulled the kids to safety

More people signing up for compulsory vaccines

Maple Ridge mom says public tired of hearing about measles

UPDATE: Man charged in stabbing of woman, off-duty cop outside B.C. elementary school

Manoj George, 49, is facing two counts of aggravated assault and two counts of assault with a weapon after the incident on Wednesday, Feb. 20.

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

HBC shuttering Home Outfitters across Canada

North America’s oldest retailer is revamping its various stores to improve profitability

BC SPCA investigates Okanagan woman with prior animal abuse convictions

BC SPCA is investigating a property near Vernon

Most Read