Takhini Transport issues driver layoff notices

By Jason Unrau on May 6, 2008

Sixty school bus drivers across the territory have received layoff notices from Takhini Transport after the company was released from its five-year contract a year early by the Yukon government.

Citing rising fuel costs, Takhini co-owner Pat Jamieson said the business is no longer profitable under the deal, worth $2.1 million annually.

George Gartner, director of finance with the Department of Education, said the government is confident drivers will not be hurt by the decision.

“Most of the drivers that were working for Diversified (Transportation) moved over to work for Takhini (when the contract changed hands),“ said Gartner. “So, based on our experience, it wasn’t going to be an issue.“

However, the precedent-setting concession the government made to the Watson Lake-based company had some, including Mayo-Tatchun MLA Eric Fairclough, crying foul.

“This company tendered low to ensure they got the contract. My concern is what kind of message we send to the business community,“ Fairclough said during question period last Wednesday.

“Do we say, ‘Tender anything at all and if it doesn’t work out, we’ll open up the contract again?‘ This is no way to conduct the people’s business.“

Al Fedoriak, regional manager of Diversified from 1989 to 2000 and proprietor of A Line Buses, blames the situation on combination of a poor cost analysis by

Takhini and the desire of the current government to push Diversified out the door.

“It’s quite aparent by the way they awarded the (2004) bid that it was designed to get Diversified out of the bus business in the Yukon,“ alleged Fedoriak, adding he is considering bidding on the new tender.

“I hope that anything I said, should I decide to bid, won’t be held against me by the government, but I wouldn’t be surprised that it was.“

Takhini driver Don Evans, who was issued his layoff notice two weeks ago, offered a different take.

“I cannot understand why the government couldn’t give a (fuel) escalation clause for one year that was left on the contract,“ said Evans, adding he hopes Takhini gets the contract again.

“The cost of doing the contract again is ridiculous ... it’s just politics, I guess.“

While Fedoriak said the three-week tender period was particularly short and suggested it was designed to pave the way for a Takhini re-bid, Gartner told the Star such tenders are not unusual.

“We’ve already had a number of calls from companies making inquiries,“ he said.

Takhini Transport will fulfill its school bus contract, which will now come to an end on June 30.

The re-tender will close May 21 and Gartner said a decision is likely on May 23.

Jamieson refused to talk to the Star regarding the matter and would not confirm or deny rumours her company will re-bid on the new contract.