Pacific Coach Lines says striking bus drivers will not shut down BC Ferries terminals over the holiday season, despite warnings to the contrary by union officials earlier Thursday.

The dispute stems from job cuts at PCL which recently lost its contract to provide bus service on the Tsawwassen-Swartz Bay ferry route.

Last week Unifor members at the company voted 79 per cent in favour of job action, after the company announced up to 70 per cent of drivers could be losing their jobs with no compensation, because of the service cuts.

Since PCL's contract to provide bus service does not end until Jan. 31, union officials said they could have a legal right to picket the BC Ferries terminals at Swartz Bay or Tsawassen if there is a PCL bus on the grounds.

"We could be looking at that," said Unifor spokesman Mario Santos on Thursday morning.

However, later on Thursday, PCL issued a statement saying such picketing would be illegal.

"Should labour action occur, PCL will not be operating buses and will not be at BC Ferries Terminals," read the statement.

Negotiations at an 'impasse'

The company also rejected claims that 70 per cent of the workforce would lose their jobs without compensation.

"To date, less than 20 per cent of PCL's workforce will be affected January 31. All full-time employees being laid off are eligible and will receive severance pay per the collective agreement including all our 20 year veterans."

While no job action has been announced, the bus drivers are in a legal position to serve 72 hours' strike notice.

"We are just evaluating what happens next, but we have got a strike mandate from the membership." said Santos.

In its statement, PCL said that in the event of a strike, it hoped to ensure an orderly shutdown of services, but that negotiations between the company and Unifor were at an "impasse" for now.

"We respect the bargaining process and are hopeful that a settlement can be achieved without a labour disruption," said PCL General Manager Jim Leidl.

BC Ferries would seek injunction

Earlier on Thursday, BC Ferries spokeswoman Deborah Marshall says the corporation would take legal action to stop any action that could cause a ferry shutdown.

"We would take immediate action to seek an injunction to prevent any interruption to our service over the holidays," said Marshall.

She notes the pickets could only go up when there is a PCL bus on BC Ferries grounds.

"There's no legal basis for a picket if there's no bus on our property. The actual bus would be their work site."

This morning, B.C. Ferry and Marine Workers Union president Graeme Johnston said it's important to support fellow workers,

"I would encourage my members not to cross any picket lines," said Johnston.

He also expressed support for the laid off workers.

"I think what PCL is doing is reprehensible. I think supporting the workers in this case is really important,"

The B.C. Ferry and Marine Workers Union union represents the majority of workers on board the ferries, and the ticket agents and ramp operators at the terminals.

Whistler bus service also at risk

Unifor spokesman Mario Santos says they are trying to ensure drivers affected by the cuts get a fair severance package, but talks have broken down.

"The employer walked away from the table and basically said, advise us when you're putting up the picket line," said Santos.

Any job action could also impact PCL's bus service between Vancouver and Whistler, says Santos.

"This isn't just BC Ferries. PCL owns two other companies that provide shuttle service to Whistler, so this could impact service to Whistler."