B.C. unions coordinate to press province to make future ferries locally

Several trade unions want action taken to ensure the future health of B.C. shipbuilding — including a commitment from BC Ferries to build its next fleet locally.

Upset with last year’s decision to build four ferries at a Chinese state-owned shipyard, representatives from more than 10 unions held a Monday news conference in Delta to pressure the Crown corporation.

“One year ago, BC Ferries announced their decision to build four ferries in China,” said Brynn Bourke of the BC Building Trades union. “They argued that it was simply impossible to build ferries in B.C. They were wrong. Thousands of people make their living in our shipbuilding industry.”

Asked whether the provincial government would support such a commitment, the Transportation and Transit Ministry highlighted several ways the province is trying to boost growth in the sector, adding, “We all want to see more ships and ferries built here in British Columbia.”

But a spokesperson did not respond to a question asking if the minister would back the commitment to have the next fleet of ferries after those four are built within the province.

BC Ferries said in a written statement that it prequalified two Canadian shipbuilders for the last ferry contract, but neither submitted a final proposal. The corporation also says it supports growing Canada’s shipbuilding industry so local bidders can compete.

“But building the capacity to compete for large passenger-vessel construction requires investment by government and industry,” the statement said. “Without that support, the additional cost of building locally would fall to ferry customers.”

Premier David Eby has said BC Ferries decided to build four ships at the Chinese state-owned China Merchants Industry Weihai Shipyards because it would have cost at least $1 billion more to build them elsewhere.

The most likely place to build them in B.C. would have been at Seaspan’s North Vancouver Shipyard.

But the company did not bid on the contract, blaming unrealistic price expectations and saying B.C. shipbuilders can’t compete with countries that have lower employment standards.

Seaspan also pointed out that other provinces, such as Quebec, subsidize shipbuilding, creating a “competitive disadvantage” for B.C. shipyards. The company called for B.C. to “strategically” build ferries locally, even though it costs more.

Bourke says the only way companies can have the certainty to make the investment needed to increase capacity is through this sort of commitment. And, she says, a lower ferry price doesn’t really save money for the economy as a whole.

“If you are just looking at the price that you’re putting on a ferry, I think that that is a flawed premise,” she said. “Instead, you should look at how much money you are sending across the world that you are never getting back.”

Eric McNeely of the B.C. Ferry & Marine Workers Union points out that building ships overseas is a loss for the local economy that outweighs the cost savings.

“The cheapest ship isn’t cheap if the jobs, income, and taxes that work creates go overseas,” he said.

Both McNeely and Bourke want the province to reflect on where it used to build all of its ferries.

“Every ferry built before 2002 for BC Ferries was made right here in B.C.,” McNeely said.

The group of unions is working on a report to recommend next steps.

Scott Lunny of United Steelworkers District 3 says it will then be up to the provincial government to make moves to get things started.

“This coalition is a start, but our provincial government needs to take up the reins and bring together shipbuilding companies, workers, BC Ferries, training institutions, and Ottawa to build a long-term shipbuilding strategy for this province,” he said.

“Only then can we plan the orders, expand the capacity, train the workforce, and take back the lost opportunity for British Columbia and Canada.”