B.C. won’t scrap rich pension for Ferries boss

Breaching contract would be wrong, expensive: Lekstrom

BC Ferries vessel Coastal Celebration in dock at Tsawwassen.

The province won’t rip up the deal that promises BC Ferries CEO David Hahn a $315,000-a-year pension even though Premier Christy Clark has condemned it as far too rich.

Transportation Minister Blair Lekstrom said Wednesday he was not previously aware of the arrangement but breaking it would be very costly.

“I’m not prepared to stand up and break a contract,” Lekstrom said, adding a “contract is a contract” whether it involves unionized labour or a high-profile CEO.

The comment was a reference to when Lekstrom stood on principle and voted against the BC Liberal government’s 2002 decision to tear up health sector contracts to privatize hospital support staff – a move ultimately overturned by the Supreme Court of Canada, which ordered the province to pay compensation and strengthened collective bargaining rights.

“I recognize the concern of the general public out there when we see these kinds of numbers,” Lekstrom said. “I did not know these were the numbers in the contract.”

He said government policy now limits future pay and pensions for BC Ferries executives to what is allowed in the public sector, but Hahn’s arrangement is grandfathered in.

Clark had called Hahn’s pension as “way, way too big.”

But BC Ferries board chair Donald Hayes said the legislature confirmed the pay and pension provisions in 2010 when the government amended the Coastal Ferry Act.

Hayes said in a statement the compensation package for Hahn was negotiated in 2006 at private sector rates in part to retain him in light of possible competing offers from other large private-sector firms.

Hahn’s base salary of $500,000 is topped up with a bonus and other benefits, pushing his annual pay to more than $1 million for 2011.

Just Posted

Port Alberni to receive $8.7 million in affordable housing

Two projects in the Alberni Valley will provide 87 units of housing

EDITORIAL: School washrooms are no place for fear

This is about access for people who need to use the facilities…

Paula Wild, Rick James hold duo book readings in Port Alberni

Wild talks wolves while James tells tales from the rum running trade on Nov. 15

Gas prices on Vancouver Island to drop six cents

But a ‘volatile’ market could lead to increases in the coming weeks

Soccer dream comes true for young Port Alberni players

AVYSA’s development team takes to the pitch with VIU Mariners

People flocking to Vancouver Island city to see hundreds of sea lions

Each year the combination of Steller and California sea lions take over Cowichan Bay

Threat of extremism posed by proportional representation overstated: academics

As B.C. voters decide on electoral reform, the Vote No side is cautioning that the system would allow extremists to be elected

What now for Calgary, Canada and Olympic Games after 2026 rejection?

Calgary, along with the 2010 Winter Games in Vancouver and Whistler, B.C., made Canada a player in the international sport community

Sex-misconduct survey excludes vulnerable military members: Survivors’ group

But It’s Just 700 says recent research has shown young military members and those on training are among those most at risk for sexual violence

Many child killers have been placed in Indigenous healing lodges according to stats

As of mid-September, there were 11 offenders in healing lodges who had been convicted of first- or second-degree murder of a minor

Active investigation into reported sexual assault at Vancouver Island naval base

An Oct. 5 allegation is being investigated by Canadian Forces National Investigation Service

Expect no quick end to Canada-wide cannabis shortages, producers warn

Provinces including British Columbia, Alberta have all reported varying degrees of shortages

Vancouver Island home lost to fire, but family and 14 dogs are safe

Firefighters were called to a blaze Wednesday morning at house near Nanaimo Airport

Want to buy your first home? Move to Kamloops or Prince George

Kamloops, Prince George, Campbell River and Langford are the only other markets in the study without gaps between required and actual income in owning a home.

Most Read