Job cuts and fare cuts announced by BC Ferries

The president of BC Ferries has confirmed that the company is laying off 35 non-union staff the same day it is cutting fares with a fuel rebate on its minor routes.

President and CEO David Hahn said the job cuts announced on Tuesday are part of a plan to cut management and administrative positions, including several senior management and director-level positions.

More layoffs are likely and unionized workers could be next, said Hahn.

The job cuts come as the slowing economy is causing more and more passengers and travellers to stay home, cutting revenue for the coastal ferry service.

CBC News first reported rumours of the cuts at the provincially owned company on Monday.

Fuel rebates for minor routes

On Tuesday the ferry corporation alsoannounced customers travelling on all 17 minor routes will receive fuel rebates of five per cent on average, starting Feb. 12.

Customers travelling on the Horseshoe Bay-Langdale route will receive a fuel rebate of two per cent on average, the company said.

"When we had to introduce fuel surcharges several years ago, we indicated that if the price of fuel came down that we would offer rebates and I am pleased to be in that position today," said Hahn.

The rebate does not affect the main routes between Metro Vancouver and Vancouver Island, but more rebates may be coming in the months ahead, said Hahn.

"In fact, we will revisit our costs again in late June and will hopefully announce an increase in the rebates."

An unpopular fuel surcharge intoduced lastspringto offsetrising fuel prices was dropped in December after fuel prices fell in the fall.