VIA Rail forecasts record loss
February 3, 2014
VIA Rail says that it will run its operating deficit this year to nearly a third of a billion dollars in what our union, Unifor, calls an attempt to “manufacture a crisis.” Unifor represents the majority of unionized workers at VIA, including on-board train personnel, customer service, and maintenance staff.
The Crown Corporation states that they have calculated deficits on passenger rail service that totaled $279.1 million in 2012, $304 million in 2013 and $321 million for 2014. VIA said in a corporate plan tabled in Parliament said that more service cuts are certain.
“We know the government wants to manufacture a crisis,” said Brian Stevens, Unifor’s Director of Rail. “There is an obligation here to invest,” said Stevens, adding that Parliament appeared determined to “slowly starve” the rail service.
VIA management in its Summary Of The 2013-2017 Corporate Plan said it is banking on better ridership and higher revenues on its most popular routes between Québec City, Montréal, Ottawa and Toronto, with new investments in passenger cars and infrastructure.
However the corporation warned of more service cuts on lesser-used routes nationwide, noting recent service reductions between Montréal and Halifax, and the suspension of service along the Gaspé Peninsula last August.
Another $10.8 million in unspecified cuts are targeted for this year. Although VIA did not identify what routes face closure, they did say that service on their famed transcontinental route, the Canadian, and Atlantic Canada’s Ocean trains will be reduced, routes that were previously cut back in 2012.
“In more favourable economic climates, The Canadian has been financially viable on a partly allocated basis,” VIA reported to Parliament. “During the off-peak season, demand is not sufficient to justify current train frequencies from a commercial perspective. This is also true of The Ocean where cost recovery is low even during the peak season, and is steadily declining due to competition from road and air travel.”
VIA blamed its operating deficits in part on ongoing pension liabilities for retirees, estimating its contributions will rise 16 percent this year from $92 million to $107 million.
“You’d have to wait for actuarial reports, but we think VIA’s pension plan will be funded,” said Bob Fitzgerald, National Representative for Unifor based in Toronto.
On November 29, 2013, Unifor proposed development of high-speed service on VIA’s most popular routes to increase ridership and “kick-start the national economy”.
Green Party Member of Parliament for Thunder Bay-Superior North, Ontario, Bruce Hyer, who is a passenger rail advocate, says VIA’s long-term corporate plan appears to be a bid to privatize the Crown railway. “It’s very clear to me – this is opinion, not fact, but I bet I’m right – the goal here is to privatize the profitable parts of VIA Rail and kill the other routes,” said Hyer.
Hyer goes on to suggest: “I think they want to sell off profitable runs like Québec City, Ottawa and Toronto, and do away with service on the Prairies, Northern Ontario and the Maritimes,” Hyer said. “I hope they don’t get away with it before the next election.”
Unifor will continue throughout 2014 to campaign for the federal government to properly fund VIA Rail, restore and improve service and train frequencies, and lobby for a new vision for passenger rail service in Canada – a bold new plan that would introduce high speed rail to Canadians, boost jobs and help reduce our environmental footprint.
The Crown Corporation states that they have calculated deficits on passenger rail service that totaled $279.1 million in 2012, $304 million in 2013 and $321 million for 2014. VIA said in a corporate plan tabled in Parliament said that more service cuts are certain.
“We know the government wants to manufacture a crisis,” said Brian Stevens, Unifor’s Director of Rail. “There is an obligation here to invest,” said Stevens, adding that Parliament appeared determined to “slowly starve” the rail service.
VIA management in its Summary Of The 2013-2017 Corporate Plan said it is banking on better ridership and higher revenues on its most popular routes between Québec City, Montréal, Ottawa and Toronto, with new investments in passenger cars and infrastructure.
However the corporation warned of more service cuts on lesser-used routes nationwide, noting recent service reductions between Montréal and Halifax, and the suspension of service along the Gaspé Peninsula last August.
Another $10.8 million in unspecified cuts are targeted for this year. Although VIA did not identify what routes face closure, they did say that service on their famed transcontinental route, the Canadian, and Atlantic Canada’s Ocean trains will be reduced, routes that were previously cut back in 2012.
“In more favourable economic climates, The Canadian has been financially viable on a partly allocated basis,” VIA reported to Parliament. “During the off-peak season, demand is not sufficient to justify current train frequencies from a commercial perspective. This is also true of The Ocean where cost recovery is low even during the peak season, and is steadily declining due to competition from road and air travel.”
VIA blamed its operating deficits in part on ongoing pension liabilities for retirees, estimating its contributions will rise 16 percent this year from $92 million to $107 million.
“You’d have to wait for actuarial reports, but we think VIA’s pension plan will be funded,” said Bob Fitzgerald, National Representative for Unifor based in Toronto.
On November 29, 2013, Unifor proposed development of high-speed service on VIA’s most popular routes to increase ridership and “kick-start the national economy”.
Green Party Member of Parliament for Thunder Bay-Superior North, Ontario, Bruce Hyer, who is a passenger rail advocate, says VIA’s long-term corporate plan appears to be a bid to privatize the Crown railway. “It’s very clear to me – this is opinion, not fact, but I bet I’m right – the goal here is to privatize the profitable parts of VIA Rail and kill the other routes,” said Hyer.
Hyer goes on to suggest: “I think they want to sell off profitable runs like Québec City, Ottawa and Toronto, and do away with service on the Prairies, Northern Ontario and the Maritimes,” Hyer said. “I hope they don’t get away with it before the next election.”
Unifor will continue throughout 2014 to campaign for the federal government to properly fund VIA Rail, restore and improve service and train frequencies, and lobby for a new vision for passenger rail service in Canada – a bold new plan that would introduce high speed rail to Canadians, boost jobs and help reduce our environmental footprint.
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