Via Rail Canada is facing criticism over its decision to give out over $11 million in bonuses despite delays and losses.
Figures from an order paper question by Conservative MP Andrew Scheer show that the Crown corporation in charge of Canada’s intercity trains handed out $11.4 million in bonuses during the 2023-2024 fiscal year.
The bonuses include $1.1 million to eleven Via Rail executives, averaging out at over $100,000 per person, as well as $10.2 million to 748 Via Rail employees who are “below the executive level (or equivalent.)”
In a statement to True North, Canadian Taxpayers Federation director Franco Terrazzano criticized Via Rail’s decision to hand out the bonuses.
“VIA Rail shouldn’t be handing out millions in taxpayer-funded bonuses while it loses hundreds of millions of dollars,” he said. “The federal government must stop rewarding failure with taxpayer-funded bonuses.”
While Via Rail’s revenues increased by 29% in 2023, totalling $430.7 million, operating losses also grew and totalled $381.8 million. The crown corporation also received $773 million in taxpayer subsidies in 2023, a 15% increase from 2022.
Via Rail continued to struggle with on-time performance. According to the company’s annual report, just 59% of its trains arrived “on time” in 2023.
In a statement to True North, Via Rail defended its record saying that financial performance “increased significantly” in 2023.
“In 2023 bonuses were paid to 759 employees. 2023 bonuses were based on several elements linked to financial performance, including VIA Rail’s revenues, which increased significantly last year reflecting our increase in ridership,” said the company’s spokesperson.
Canada’s intercity rail infrastructure is also lagging behind other Western countries.
Canada remains the only G7 country without a high-speed rail network, with rail trips between Canada’s two largest cities, Toronto and Montreal, taking an average of five hours and eight minutes. Flights between the two cities take on average just over an hour.
Via Rail is also dealing with an ageing and unreliable fleet, amidst several of Via Rail’s cars being built between 1946 and 1955.
While Via Rail began introducing new Siemens trains in 2022, these trains will only be running on the Quebec City-Windsor. Other routes, including the trans-Canadian rail line between Toronto and Vancouver, will continue to be operated by ageing trains for the near future as Via Rail has not yet secured funding for more new rolling stock.