A small ferry coming into the dock

BC Ferries Is Still Facing Labour Unrest. Here’s the Latest

By Isaac Phan Nay, The Tyee, Local Journalism Initiative Reporter

The union that represents BC Ferries workers is headed into difficult contract talks this summer — but hopes to avoid any job action that could impact ferry operations.

An arbitration panel’s decision on wages earlier this spring will set the tone for the negotiations, said union leader Eric McNeely.

As part of the existing collective agreement, the panel decided May 30 that BC Ferries workers will earn a 1.65 per cent raise.

McNeely said he’s disappointed with the decision to put the workers’ raise behind inflation.

“It appears to be devoid of any logical justification, and so we need to figure out a way to correct that,” McNeely said. “We actually see some members taking real wage loss against inflation.”

According to the provincial government’s consumer price index, the cost of goods has increased two per cent since last year.

The employer and the BC Ferry and Marine Workers’ Union will head back to collective bargaining and reopen wage talks for approximately 4,500 BC Ferries workers in July.

Kendra Strauss, a labour studies researcher at Simon Fraser University, said inflation — and the arbitration board’s decision — could signal a sea change in how authorities rule on labour disputes.

And while McNeely said the union is bracing for a tough fight for higher wages, BC Ferries spokesperson Sonia Lowe said the company is “navigating a tough financial landscape.”

“It’s important we strike the right balance, making sure employees are fairly compensated while protecting the long-term stability of the essential service,” Lowe said. “That balance is key to securing the future of BC Ferries.”

The current contract, which expires at the end of October, has brought the employer and union together twice to renegotiate wages.

The negotiations escalated to a bitter dispute in 2023 that opened a rift between the union and the employer. Lowe said last year the employer delivered a 7.75 per cent general wage increase — the largest wage increase in three decades.

Some roles saw an even larger wage increase, Lowe said. Senior licensed officers, for example, received a 17.75 per cent lift.

The second round of wage negotiations ended last month.

“It’s pretty frustrating,” McNeely said. “It appears the arbitrator has taken the employer’s position to a large degree and put a lot of weight in it.”

According to McNeely, union members currently make between $25 and $64 an hour, depending on their position. The unit includes a range of workers from shipyard and terminal workers to ship captains.

McNeely said for some workers, that means real wage losses. He said many members aren’t able to afford to pay their bills at the current wage levels, causing many to leave for other jobs.

“This impacts [ferry] reliability as well, because it’s harder to retain and keep people if they’re losing against inflation,” McNeely said.

In recent years, BC Ferries has faced multiple service disruptions the corporation has blamed on mechanical failures and staff shortages.

Labour researcher Strauss said the decision on wages could mark a shift in how arbitration boards rule on labour disputes.

“There’s this sort of consensus that inflation is under control and therefore workers’ expectations around wages need to be moderated,” Strauss said. “The argument that the arbitration panel and employers might make is that we’re out of this period of unprecedented inflation.”

But she said the past five years of rising costs have had an outsized impact on the working class — according to Strauss, lower-to-middle-income workers are most affected by rising food and shelter costs.

While inflation remained normal at two per cent, the provincial consumer price index for food rose 4.3 per cent between April 2025 and April 2024. Shelter costs rose 3.3 per cent.

That’s higher than the 1.65 per cent raise the arbitration board granted to the ferry workers this year.

“The core costs for workers continue to rise at a faster pace,” she said. “So for many workers, this is a real decrease in pay.”

McNeely said the union will be looking to head into bargaining this July seeking a five per cent wage bump to catch workers up to the cost of living, plus further wage increases that keep them on track with rising costs. The Bank of Canada predicts inflation will remain at about two per cent in 2026.

“We’re likely going into one of the most difficult rounds of negotiations since the privatization of BC Ferries, both for workforce culture and with the amount of [wage] catch-up that’s required,” McNeely said.

He added the union is looking to negotiate a new collective agreement and avoid any job action up to and including a strike — action the union has not taken since 2003.

Top image credit: MC Tachek coming into the Cortes Island terminal at Whaletown – Roy L Hales photo

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