VANCOUVER — Unions at B.C. Rail called Thursday for a public inquiry into allegations that senior executives of the railway are trying to ruin the carrier’s finances, the Canadian Press reported.
The Council of Trade Unions said the allegations were made by fired B.C. Rail president Mark Mudie and are contained in documents filed in B.C. Supreme Court in his wrongful dismissal suit.
The council said the documents allege that railway executives conspired to weaken the Crown corporation’s finances in order to force the government to sell it and trigger generous severance packages for the executives.
A Vancouver newspaper published the story on the weekend, saying it had obtained documents that included a termination letter from the corporation stating that Mudie was fired because of his romantic involvement with Debbie MacLagan, the corporation’s vice-president of marketing and sales.
MacLagan was appointed vice-president by Mudie and was dismissed on Aug. 23 this year — the same day Mudie was fired.
The dismissal was “without just cause and without notice,” said Mudie in a writ filed in B.C. Supreme Court. He acknowledged the “personal relationship” but said it was a red herring to get rid of him for other reasons.
Mudie said he was fired because he was steering the railway to an improved financial picture, contrary to what he alleged were other executives’ agendas.
Lance Yearley, the unions’ vice chairman, said that if Mudie’s allegations are true, it amounts to an enormous conspiracy in the Crown corporation.
He said the council feared that Premier Gordon Campbell plans to privatize the railway.
Passenger service has already been eliminated, Yearley noted.
Transportation Minister Judith Reid rejected calls for a public inquiry and a spokesman in her ministry said the railway had not been sold.
B.C. Rail spokesman Alan Dever also said the corporation had not been told of any sale.
“We have not been informed of any decision made by the government at this point,” Dever said. “That’s a decision (the government) will make.”
He wouldn’t comment on the allegations contained in Mudie’s court documents.
“That information is before the courts and we don’t comment on court cases.”
The union also expressed concern about discussions on the railway’s fate at a meeting held Nov. 21 in Prince George that included Campbell, some mayors, rail companies and shippers.
But Dever said the meeting was a northern transportation conference on B.C. Rail and was open.
“It was a fairly open meeting and I believe the media was there for most of the sessions.”
“I know our unions were critical at the time that they were not on the guest list but that guest list was established by the province.”
Dever said the meeting was “essentially an exchange of opinions about the railway.”
He also said the seven unions in the council are currently involved in contract negotiations. Their contract expires at the end of the month.