BC Ferries Announces Reduction in Overhead Costs

November 12, 1999

BC Ferries' management is being restructured, resulting in a $5 million annual savings and a 20 percent reduction in non-fleet management and administration positions, President and CEO Bob Lingwood announced. Lingwood was joined in the announcement by Gordon Wilson, minister responsible for the corporation, and Michael Francis, chair of the corporation's board of directors. "This downsizing and re-organization is a substantial move forward in our efforts to get the corporation's financial and management house in order," said Lingwood. "The executive is serious about improving the corporation's performance for our customers and the taxpayers. These changes are a necessary first step." Highlights of the reductions and restructuring are as follows: · The corporation will be reducing its year 2000/01 overhead and administrative costs by $5 million. This represents a 10 percent reduction in the corporation's annual overhead costs. · 65 non-fleet positions will be eliminated. · A majority of the positions are non-union management. · The cuts represent approximately a 20 percent reduction in non-fleet management and administrative positions. · Three vice-president equivalent positions will be eliminated, resulting in a streamlined management structure. · Non-payroll expenditures will be reduced by $1 million. · The new management structure is designed to improve operations and customer service, financial management and human resources. · Engineering services for ships and terminals will have an improved focus on quality and cost. "I am impressed with the quality of the reorganized corporation," said Wilson. "The reduction of $5 million from overhead and the improved management focus on the core business of the corporation positions BC Ferries well for the important work still ahead." Lingwood emphasized ferry service will not be directly impacted by the reductions and said the most affected areas of the corporation are the executive, financial services, and administration at head office.

BC Ferries Announces Reduction in Overhead Costs

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