Thank you very much, Mr. Chair, for inviting the Canadian Ferry Association to speak on this important issue.
First, let me provide you some background on the sector.
Ferries in Canada annually transport over 60 million passengers, 23 million vehicles and billions of dollars' worth of goods. Our members provide a crucial linkage to communities. They cross rivers in isolated communities in rural and northern Canada, an example that most do not fully realize. There are free ferry crossings along the Dempster Highway in the Northwest Territories to get to Inuvik; when ferries do not run, the cost of goods significantly increases in that city.
Ferries bring not only people but also most goods to islands such as Newfoundland and Vancouver Island. We also provide urban transit solutions in various municipalities, such as Toronto, Halifax, Vancouver and others.
The Canadian Ferry Association represents most ferry operators across Canada, from Crown corporations to indigenous, provincial, territorial and municipal governments and private operators. We also represent some of the suppliers to the sector.
The issue of labour shortages is not new in the marine sector. Indeed, we have an aging workforce. An informal survey of our members sent out in 2019 showed that about 55% to 62% of the employees holding senior positions were able to retire within five years. The pandemic has made the issue even more pressing. We have seen unprecedented levels of retirement in the past couple of years.
The result is simple. There are increasing numbers of ferry crossings that are cancelled due to labour shortages. This weekend, some ferry crossings between Kingston and Wolfe Island in Ontario were briefly cancelled, as the operator was looking to replace a crew member. You can see weekly in the media instances of crew shortages on the west coast, the east coast and indeed throughout Canada, even in the Prairies, where this is the number one issue for our operators there.
The brief we submitted to the committee provides some of our recommendations. To be clear, Mr. Chair, there is no magic wand that will solve the issue. There are multiple directions to be explored, and each will have an impact.
The financial impact of labour shortages in the ferry sector is important. It means goods not arriving or arriving late. It means higher prices for some products. It means that employees are not getting to work because they can't get the ferry. It also means that people may not be getting home in time or getting to their hospital appointments, etc.
Ultimately, it is about communities. That's why it is essential for us to remember that when ferries do not run, entire communities are affected.
There are many considerations. I would like to explore some with you.
Immigration will not solve all problems, but it is an important avenue to look at. We thank Transport Canada for having taken some steps in the right direction, with support from Global Affairs, on the signing of agreements recognizing credentials, but more can be done, and more needs to be done soon.
Technology is also an important consideration, but the regulations that need to accompany the use of new technology also need to follow, and we're seeing challenges in that.
Can working conditions be improved? Absolutely, always, but I would say that ferry operators are normally employees of choice, and working conditions are very good already. Raising salaries may attract a few people, but then others will raise their salaries, and this endless race to poach each other's employees will end up benefiting no one.
Employers, unions and training institutions will have a role to play. This is why, for example, you will see some recommendations in our brief that deal with hybrid, in-person, and virtual training.
The recommendations provided in our brief are in four categories: international recruitment, where, again, signing agreements with other countries is essential; training, from virtual training to changing the requirement that sees institutions in the marine sector refuse international students; modernizing, in terms of crewing requirements that deal with technology, and the need to modernize some regulations and adopt a risk-based approach; and data, where better data collection needs to occur to have a clearer picture of the existing issues.
Mr. Chair, I look forward to questions. Thank you.