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

The end of an Echo

Invermere Valley Echo shuts down operations in Columbia Valley

Creating a new narrative for Canal Flats

Economic development consultant hired, lists vision for next 90 days

UPDATE: Crews battle as wildfires rage in B.C. Interior

Crews brace for another day on B.C. firelines as no let up is likely

VIDEO: B.C. wildfires by the numbers

Wildfires continue to engulf regions of B.C.’s forests and communities.

VIDEO: More than 180 wildfires burning across B.C.

Firefighters from other provinces called in to assist

DTSS Grad March 2017

DTSS Grad March 2017

59 cats seized in Chase

59 neglected and injured cats were seized from a property in Chase

Soundgarden singer Chris Cornell dead at age 52

The singer/songwriter passed away early Thursday morning in Detroit

Paying tribute to a primeval passage

Uninterrupted celebrates the Adams River sockeye run in an extraordinary way.

UPDATE: Pemberton Music Festival cancelled, no automatic refunds

In the past, the music festival located in Pemberton drew large crowds last year of 180,000 fans

Medical wait times cost B.C. patients $2,300 each

New Fraser Institute report places B.C. at second worst in costs associated with long wait times

UPDATE: 22 killed at Ariana Grande concert

Witnesses reported hearing two loud bangs coming from near the arena’s bars at about 10:35 p.m.

One in three Canadian high school students have rode with drinking drivers, study reveals

Nearly one in five rode with a driver who’d been smoking pot

Top court to hear federal government’s appeal on residential school records

A lower court judge ruled to destroy the stories after 15 years unless consent is given to preserve

Most Read