Auckland bus drivers reject pay offer

Auckland's bus drivers and their company, whose acrimonious industrial dispute once more threatens commuters, have been given the hard word Auckland's transport tzar – sort it out now.

The chief executive of the Auckland Regional Transport Authority (ARTA), Fergus Gammie, says he is "very disappointed" that the union and company failed to reach agreement today.

At a meeting today the Auckland Combined Union which represents around 900 drivers and cleaners employed by Metrolink, GO WEST, Waka Pacific, North Star, LINK, and City Circuit bus services, rejected an offer of an 11.5 percent wage rise spread out over three years.

The union had taken the offer to a meeting at Alexandra Park recommending members accept it.

Mr Gammie said: "This is a disappointing outcome and we encourage both parties to settle this situation with urgency in respect of any potential further impact on Auckland's bus commuters. In the interests of Auckland's travelling public, it is critical that this dispute be resolved as soon as possible and resolution reached."

ARTA pays a daily subsidy of $160,000 to NZ Bus – which is suspended when the buses are not running.

Union spokesman Karl Andersen said he was surprised it was rejected, saying it was "an emotional meeting" with "fairly robust discussion" by the 700 members who turned up.

After two and half hours and a secret ballot the offer was thrown out in a majority vote.

Mr Andersen said there is a lot of anger still among the drivers.

"Its fairly simple, the deal's not good enough."

It was difficult to say what was now needed to reach a bargain, he said.

"We took an offer that was rejected so how far we are apart I don't know. We have to regroup and reformulate and talk to them [the union members] again about where we go, I mean at the end of the day we are going to have to bargain an agreement, so you know its no good people getting to emotional about it. We've just got to try and sort it out."

He said it was premature to discuss whether it meant further work to rule or other industrial dispute which may see buses once more stop running.

Last month the union ordered a work to rule, which triggered a lock out by the company NZ Bus and stranded up to 80,000 commuters including 9000 school children for seven days.

NZ Bus general manager of operations Zane Fulljames said the decision "beggars belief".

"It is immensely disappointing to our customers, our people and the business."

He said NZ Bus would now be reconsidering its position.

The dispute has ground on now for five months.

The union and company have been in front of the Employment Relations Authority (ERA) already.

In comments made public by the ERA it said bus drivers are arguably underpaid when compared to similar occupations, but made the comment that now was not the time to address long-standing deficiency issues.

The ERA suggested a wage increase of 4.2 percent for the first 16 months, back-paid to July this year, then 3.9 percent for the next 14 months from November next year - rises of about 70 cents an hour.

The ERA said it was satisfied NZ Bus was not currently in a financial position to agree to a large scale realignment of wages.

Bus drivers with at least nine months experience, which make up 91.5 percent of the work force, are currently paid $16.75 an hour.

New drivers are paid $15.82 and trainee drivers $14.05.