Marine Atlantic

Marine Atlantic corporate information

Budget 2024 provided Marine Atlantic funding to support fares and continue operations of $124.1M over five years.

When Newfoundland joined Canada in 1949, the ferry service between the Province of Newfoundland and Labrador and the mainland was accorded special constitutional status under Term 32(1) of the Terms of Union (The Newfoundland Act, 1949) which guarantees that Canada will “maintain in accordance with the traffic offering a freight and passenger steamship service between North Sydney and Port aux Basques, which, on completion of a motor highway between Corner Brook and Port aux Basques, will include suitable provision for the carriage of motor vehicles.

Acts governing Marine Atlantic:

  • Financial Administration Act
  • Marine Atlantic Inc. Acquisition Authorization Act
  • National Marine Policy requires that Marine Atlantic focus its efforts on operating the gulf ferry service.
  • Articles of Incorporation
  • By-laws
  • Vision, mission statement, and values, further direct both the Board and management in their decision- making.

Revenue

Revenue Source x 1000 2022-23 2019-20
Transportation revenue 109,597 96,568
Fuel surcharge revenue 9,905 11,650
Other income 421 229
Foreign currency exchange gain 295
Realized gain on derivative financial instruments 12,101
Total Revenue 132,319 105,625
Operations Subsidy 90,948 83,239
Capital Subsidy 40,880 50,076
Total Subsidy 130,200 133,315
  • Total Expenses 332,710
  • Cost recovery: 59.9% in 2023

Traffic

Traffic 2022-23 2019-20
Passengers 360,388 311,499
Passenger vehicles 142,645 120,426
Commercial vehicles 92,687 82,194
Auto Equivalent Units 538,289 470,095
Number of single crossings 1,750 1,632
  • 86% On-Time Performance

Board of Directors (10)

  • The independent directors are chosen and appointed for specific terms by the Government of Canada.
  • The President and CEO is also a member of the Board
Board member Committee
Gary O’Brien Chair
Murray Hupman Ex-officio
Carla Arsenault Innovation and infrastructure
Janie Bussey K.C. Chair HR
John Butler HR
John B. Chaffey Finance
Owen Fitzgerald Finance
Lynn Kendall HR
Craig Priddle CPA Finance
Ann-Margaret White Finance

Regular Shipping to Newfoundland

  • Marine Atlantic (4 mixed use ferries)

    • Cape Breton, NS
    • Port aux Basques
    • Argentia
    • year-round 96 nautical mile daily ferry service between Port aux Basques and North Sydney
    • seasonal 280 nautical mile ferry service between Argentia and North Sydney

MSC Mediterranean Shipping Company

  • MSC (5 container ships)

    • Started in May 2020.
    • From Montreal
    • Corner Brook Port
    • Canada Gulf Bridge Service currently runs weekly out of the Port of Corner Brook
    • MSC is the only international ocean carrier providing access to and from Asian and South American markets directly linked to Newfoundland.
/mrr/img/Screenshot 2024-04-25 at 14-44-33 Container – Corner Brook Port.png
MSC Route showing Corner Brook as second stop of leg

Ships include:

  • MSC DON GIOVANNI/CG417A
  • MSC BALTIC III/CG418A
  • MSC MALENA/CG419A
  • MSC SAMIRA III/CG420A
  • MSC ALDEBARAN III/CG421A

Oceanex

  • Oceanex (3 cargo ships)

    • From Montreal
    • St. John's
  • Ships about 75 per cent of all freight destined for St. John’s.
  • Ships half of all freight headed for Newfoundland.
  • Oceanex's main publicly stated concern is with the subsidy regime supporting Marine Atlantic (the fact that it operates as a non-profit, subsidized Crown).
  • Oceanex considered shutting-down service to Newfoundland during the pandemic. Marine Atlantic stated that it would, somehow, be able to replace the lost shipping traffic.

Ships include:

/mrr/img/Screenshot 2024-04-25 at 14-54-16 OCEANEX CONNAIGRA IMO-9649718.png
Oceanex Connaigra (RO-RO)
/mrr/img/Screenshot 2024-04-25 at 14-54-49 OCEANEX AVALON IMO-9315044.png
Oceanex Avalon (Container)
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Oceanex Sanderling (RO-RO)

Other

  • Other regular shippers exist, but are not focused on shipping dry cargo from the mainland.
  • There are regular shipping routes that come in from Labrador and Saint Pierre and Miquelon which bring cargo that is enroute from other locations to Fortune, NL.

  • There are irregular cargo transports arriving in different NL ports throughout the year, but these shipments make-up a small portion of the shipments of goods to NL. They are, however, essential routes for trade.

NL Intra-provincial marine transport

  • Newfoundland and Labrador counts an intra-provincial ferry fleet to its 35+ points of call.
  • Annual transport on all ferries:

    • 820,000 passengers
    • 400,000 vehicles
    • 12,000 tonnes of freight
  • Provides access to 11,000 residents of remote and isolated communities.
  • NL Marine Services provides freight between communities.

Marine Atlantic ships

Marine Atlantic claimed that they could accommodate all of Oceanex’s cargo shipping if they were to pull out of NL shipping, a rather strange position since stuff shipped from Montreal is different from stuff shipped from Cape Breton.

Leif Ericson

  • 300 Commercial vehicles: automobiles and tractor trailers
  • 500 passengers: drivers of the commercial vehicles

MV Blue Puttees

  • 1000 passengers
  • 425 cars, 177 trailers, or 90 tractor trailers

MV Highlanders

  • 1000 passengers
  • 425 cars, 177 trailers, or 90 tractor trailers

Atlantic Vision

  • Out of service, currently in dry dock in Denmark
  • 700 passengers

Ala'suinu

  • Comes online in 2024-2025, currently in North Sydney, Nova Scotia.
  • Will replace Atlantic Vision
  • 1000 passengers
  • ~450 cars or equivalent

Pictures

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/mrr/img/Screenshot 2024-04-25 at 14-28-46 Annual-Report-2022-2023.pdf.png

/mrr/img/Screenshot 2024-04-25 at 15-13-36 VesselFinder Premium.png
Ala'suinu

Wages

Agreement C

4.50%
Classification 1-Jan-22
Foreperson 37.815
Tradesperson Foreperson 37.815
Lead Hand 38.106
Journeyman Carpenter 35.764
Carpenter 33.949
Machine Operator 35.764
Painter 32.293
Rough Carpenter 30.647
Tradesperson 35.155
Pipefitter 35.764
Plumber 35.764
Machinist 35.764
Electricians and Maintainers 35.764
Ramp Operators 31.118
Agreement C 2020 to 2022

Agreement B

Classifications 1-Jan-22 1-Jan-22
Local 4285 Hourly Monthly
Engine Room Storekeeper $31.837 $5539.64
Chief Cook $31.837 $5539.64
Chief Storekeeper $31.837 $5539.64
Bosun $31.185 $5426.19
Carpenter $31.185 $5426.19
Quartermaster $31.185 $5426.19
2nd Cook $30.087 $5235.14
Steward-Newsstand $30.087 $5235.14
Deckhand/Bridgewatch $30.087 $5235.14
AB Deckhand $30.087 $5235.14
Certified Engine Room Assistant $30.087 $5235.14
Engine Room Assistant (Grandfathered) $29.954 $5212.00
Engine Room Assistant (Uncertified) $29.370 $5110.38
Ordinary Deckhand $29.370 $5110.38
Asst Storekeeper $29.954 $5212.00
Bar Steward $29.237 $5087.24
Assistant Steward $29.237 $5087.24
Bilingual Steward $29.237 $5087.24
Local 4286
Senior Chief Steward $37.100 $6455.40
Purser $35.345 $6150.03
Chief Steward $35.345 $6150.03
Senior Chief Cook $35.345 $6150.03
Liferaft
Liferaft Maintainer Uncertified** $30.087 $5235.14
Liferaft Maintainer Uncertified* $31.264 $5439.94
Liferaft Maintainer Certified $32.584 $5669.62
Agreement B 2020-2022

2023 Canada Job Board Hourly Wages

These are wages reported on the Canada Job Board. Usually, these are reported wage rates for private sector non-union jobs, but sometimes report union positions.

We would compare to the Max wage rate, but should give us some comparisons to what is being posted on job boards.

Avalon Peninsula Region

Classification Max ($) Ave ($) nocnum
Chefs 30 22.4 62200
Cooks 24.5 17.51 63200
Machinists and machining and tooling inspectors 38 27.51 72100
Welders and related machine operators 52 33.72 72106
Electricians (except industrial and power system) 41 30.39 72200
Industrial electricians 45.67 33.56 72201
Plumbers 34.77 28.8 72300
Steamfitters, pipefitters and sprinkler system installers 48 39.37 72301
Carpenters 35.33 26.37 72310
Deck officers, water transport 66.75 43.05 72602
Engineer officers, water transport 66.82 46.9 72603
Painters and decorators (except interior decorators) 28 21.55 73112
Water transport deck and engine room crew 57.69 30.72 74201
Machine operators, mineral and metal processing 45.63 94100
Process control and machine operators 50 25.45 94140
Industrial painters, coaters and metal finishing 41.25 29.84 94213

Across All Newfoundland

Classification Max ($) Ave ($) nocnum
Storekeepers and partspersons 31.6 23.43 14401
Chefs 30 21.75 62200
Cooks 25 18.07 63200
Ticket agents/ cargo service, related clerks 28.55 20.04 64313
Machinists and machining and tooling inspectors 34 25.95 72100
Welders and related machine operators 54 38.84 72106
Electricians (except industrial and power system) 40 29.4 72200
Industrial electricians 50.53 37.84 72201
Plumbers 39 29.09 72300
Steamfitters, pipefitters and sprinkler system installers 48 38.95 72301
Carpenters 36 25.87 72310
Other small engine and small equipment repairers 25 19.58 72429
Deck officers, water transport 66.75 42.01 72602
Engineer officers, water transport 65 45.57 72603
Painters and decorators (except interior decorators) 30 22.3 73112
Water transport deck and engine room crew 43.27 27.66 74201
Fishing vessel deckhands 100 42.32 84121
Process control and machine operators 50 24.93 94140
Industrial painters, coaters and metal finishing 57 34.82 94213

Bay Ferries

Classification June 1, 2021
4004.22
Customer Service Supervisor $24.10
Customer Service Associate $22.96
Night Watchperson $22.96
Maintenance Staff $23.76
4404 01-Apr-2021
Watchkeeping Engineer 33.83
Electrical Officer 33.83
Senior Engineer (2 positions) 36.63
Passenger Services Supervisor 25.21

BC Ferries Wages

BCFMWU Admin Unit

COPE Ministrative Unit

Classification Feb 1, 2023 Feb 1, 2024 Feb 1, 2025
Administrative Coordinator 40.8 41.62 42.45
Accounting Clerk 38.18 38.94 39.72
Administrative Assistant 34.99 35.69 36.4
Accounts Payable/ Payroll Clerk 36.58 37.31 38.06
Receptionist/Administrative Asst. 31.56 32.19 32.83
Probationary Receptionist/Administrative Asst. 30.52 31.18 31.76

Newfoundland Travel, Shipping, and Economy

Question: How have things changed since 2000?

NL Wealth

The total net worth has increased over 200% over the 20 year period 1999 to 2019. In that time, total average earnings of the average Newfoundland family increased by over 100%.

This growth in total wealth and wage earnings far outstrips increases in prices during that period.

Even including the high inflation period since 2019, growth in incomes and wealth of the Newfoundland family has gained around 50% faster than prices since 1999.

  • 202% Growth in Total Net Worth of Newfoundland families 1999 to 2019.
  • 48.5% Growth in prices 1999 to 2019
  • 105% Growth in Average Earnings of Newfoundland families 1999 to 2024.
  • 69.5% Growth in prices 1999 to 2023

However, growth of the average blue collar workers continues to fall behind the growth rate of those at the top of Newfoundland's wage grid. Only through collective bargaining are the workers at the lower end of the economic scale able to restore balance.

/mrr/img/Real_Net_worth_of_NL_Families_(2019_Constant_Dollars)_Total_net_worth_1st_quintile_2nd_quintile_Middle_quintile_4th_quintile_5th_quintile_chartbuilder.png

NL government reports also show this income disparity.

"nearly half of residents reported that their household finances are worse or much worse off, with those residents aged 35-54 significantly more likely to indicate that their household finances are much worse off"

This is compared with 55% of residents who have had no change or are better off in their finances.

According to the NL government travel survey, while the main issue affecting travel plans is inflation and the costs associated with travel, Newfoundlanders are returning to pre-pandemic travel patterns. And, only 1/3rd of trips are to visit family.

The average Newfoundland traveller is willing to spend much more on vacations now.

In 2022, residents planned on spending:

  • vacation trips: $710
  • visiting family: $428
  • quick "getaway" trip: $510

The cost increases experienced by regular working Newfoundlanders should not (and cannot) be paid for through wage suppression of Marine Atlantic workers. Prices for transport of goods and people already do not reflect the true cost of transportation on Marine Atlantic.

Government subsidies for Marine Atlantic are to regulate the price of transport of goods, but subsidies should be paid for by all Canadians, not through lower wages for Marine Atlantic workers. Competitive wages for workers at Marine Atlantic are essential to maintain the quality of service expected on our ferries.

Access to personal transport options

Travel to and from the island in 2023

Tourists by sector of travel:

  • 304,300 air visitors
  • 113,600 auto car visitors
  • 69,100 cruise ship visitors

Total travel by sector:

  • 1,837,629 passengers by air
  • 368,039 passengers on Marine Atlantic

Air travel

Access to personal air travel has increased substantially since 2000.

In 2016, the NL government Visitor Profile outlined that air travel was the preferred option for travel for 84% of travellers to the province (72% even for those vacationing). This compares with 67% who visited via air for vacation in 2011.

Air travel hit a peak in 2019 of over 50,000 domestic air craft operations in Newfoundland airports across the two busiest airports. Those trips are increasing back to pre-pandemic levels as fast as other airports in Canada.

Total airport passenger movements in 2023 was 1,837,629, up 16% since 2022 according to the department of Tourism, Culture, Arts and Recreation.

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Domestic air travel is up, but growth in the number of flights has levelled-off. The main reason is because each plane has more passengers (more full).

There are now many more airlines operating to and from Newfoundland including regular daily flights from:

  • Porter
  • Flair
  • Air Canada
  • WestJet

Regular return flights operate for less than $200 to $400 between Toronto and St. John's.

Marine Atlantic ferry passenger rates are:

  • Return trip Argentia, NL – North Sydney, NS: $232.54
  • Return trip Port aux Basques, NL – North Sydney, NS: $87.56

Compare this to:

  • two hour whale watching tour in St. John's which will cost $115-$130.

The Marine Atlantic ferry should be and is less expensive, but prices for airline tickets are now closer than they were in 2000. This makes air travel more of an option given the prices people are already planning on spending on travel.

Freight to and from Newfoundland

Marine freight options

Marine freight to the island has expanded since the 2000s to include more modes of travel than Marine Atlantic.

These include:

  • Continued and increased shipping from Oceanex from Montreal ports which accounts for 50% of the marines freight arriving on the island.
  • MSC Mediterranean Shipping Company including Corner Brook on its large freight carrier routes from Montreal ports.
  • Freight transport from several ports in Labrador via Nunatsiavut Marine Inc. and Labrador Marine Inc. shipping.
  • International freight arriving via Saint Pierre and Miquelon.

Air freight

Air freight systems are in operation in Newfoundland.

  • Air Canada Cargo
  • Air Saint Pierre Cargo
  • Cargojet
  • FedEx
  • Purolator Courier
  • PAL Airlines Cargo
  • Servisair
  • WestJet Cargo

Air cargo freight has returned to pre-pandemic levels faster than passenger transport with nearly 12.5 Thousand Tonnes of air freight landing on the island in 2022.

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Unifor Supply Chain Analysis (in progress)

  • Review of federal supply chain submission and apply to Marine Atlantic shipping.
  • Short-term supply chain disruptions and how they impact the local economy or access to goods/services.
  • The Right to strike and CN's campaign against it.
  • Anti-replacement workers legislation during disputes
  • Employment recruitment and retention: comparisons with other workers in similar classifications.
  • Safety of transport systems.
  • Cost of living increases.
  • Options during long disputes, including interest arbitration: how and when it should be accessed/requested.
  • How best to determine and establish minimum essential service levels while still sustaining economic pressure on the employer to negotiate.