BC Ferries to face penalties for missed sailings due to crew shortages

The province plans to levy penalties against BC Ferries for “core-service sailings” that are missed due to staffing shortages.

In a statement to CityNews, the Ministry of Transportation and Infrastructure says the province will charge penalties of $7,000 per sailing missed on major routes and $1,000 per sailing missed on specific minor routes.

Transportation Minister Rob Fleming confirms the penalties will be a “fixed fine” but adds the figures are still being discussed.

“I should caution that we’re still negotiating that and we still have some time — the contract comes into place April 1, 2024. BC Ferries is not reluctant to go down this road, they want to do better, they are attempting to do better, they are taking steps to be able to do better,” explained Fleming.

He stresses penalties will not be levied for sailings that are cancelled because of weather or mechanical issues.

“The ones that are staff-related are the ones that need to be focused on. [BC Ferries] have gone from a 99 per cent sailing reliability to something like 98 per cent — but that one per cent is where people are deeply frustrated, they need to be somewhere, and their sailing was cancelled. We need to work on that,” he said.

The B.C. government says it is working with the ferry corporation to “improve reliability,” with more details expected in the spring.

Fleming adds BC Ferries is on board with the penalty approach to ensure accountability.

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The minister says he knows the summer was filled with frustrations for travellers, adding it has also been “a challenge for BC Ferries.”

He says the penalty system comes after  an increase in cancelled sailings this year.

“A significant spike — I think it’s in excess of 1,000 sailings. There are a lot of sailings annually so it needs to be put in percentage terms. I think the company, at its annual general meeting, said, ‘look, we’re generally in the 99th percentile of reliability,” Fleming said.

But staffing challenges are nothing new. BC Ferries has struggled to retain existing and hire new staff since the pandemic.

The company has been working to bolster new hires and keep the ones it has, including by opening contract negotiations early.

BC Ferries acknowledges more work needs to be done

Improving capacity and reliability will be the focus for BC Ferries as it enters its next performance term, starting April 1, 2024, the B.C. government says.

It notes a $500-million investment, announced in February and to be provided to BC Ferries over the next four years, is meant to help keep fares down so the corporation can focus on delivering service to travellers, as well as “growing and modernizing its fleet to improve reliability.”

According to the province, the BC Ferries commissioner has confirmed fares will increase an average of 3.2 per cent each year over the next four years.

“BC Ferries must invest in the technology and people necessary to ensure safe, reliable ferry service for the people of coastal B.C.,” Fleming said in a release Tuesday.

The half-a-billion dollar investment is on top of B.C.’s annual service fee to the corporation.

The provincial government adds its new agreement with BC Ferries “specifies the annual addition of 1,433 round-trip sailings, previously designated as discretionary sailings, to core services on 13 minor routes.”

Related video: BC Ferries details repairs to major vessel, Thanksgiving preparations

In a statement Tuesday, BC Ferries President and CEO Nicolas Jimenez says the corporation “gratefully acknowledges” the province’s funding “as integral to allowing the Commissioner to cap fare increases to 3.2% each year through to 2028.”

“Rising operating costs are putting significant pressure on the system and this decision supports the ferry service operating in the public interest for the next four years,” Jimenez said.

“We understand the Commissioner’s concern about BC Ferries’ ability to deliver on our ambitious capital plan. We’re actively working to increase our capacity to deliver on this plan over the longer term as it is clear that significant investment is required in vessels, terminals and IT systems to meet the public’s expectations of a modern ferry service.

“The Commissioner raises important concerns regarding the pressures facing the ferry system due to escalating costs and asset renewal. Designing a ferry system for the future will necessarily require a conversation with, and input from, all levels of government, communities, First Nations and transportation partners,” the statement concludes.