Union backs new offer to bus workers

Auckland's marathon bus pay dispute has a strong chance of being settled next week as drivers and cleaners vote on a deal backed by union negotiators.

NZ Bus services face more disruption for about four off-peak hours on Wednesday when the company's 875-strong unionised Auckland workforce considers the latest pay offer, but hopes are high for a settlement.

The difference between next week's meeting and two other mass gatherings, when offers were rejected overwhelmingly in secret ballots overseen by a Labour Department mediator, is that union negotiators are recommending acceptance of the new proposal.

That follows mediated talks yesterday and on Wednesday, in the wake of a seven-day lockout of workers a fortnight ago, when NZ Bus suspended all services providing its 70 per cent share of Auckland bus transport.

The new deal is understood to be an improvement on a previous company offer of increases amounting to $1.80 an hour by the final stage of a three-year document, although neither NZ Bus nor the unions would disclose details after yesterday's talks.

Combined unions spokesman Karl Andersen said the parties were bound by an agreement with mediator Keith Shaw until before the workers voted on the latest offer.

He was reluctant to predict their verdict, despite confirming that his negotiating team would recommend acceptance.

"We've had two ratification meetings which turned down offers. Maybe this will be the third time lucky," was all he would say.

NZ Bus previously offered an hourly pay rise of 70c to be followed by 50c next year and 60c in 2011 for a 36-month deal to ensure industrial stability in the lead-up to and during the Rugby World Cup.

The unions sought the same amount, but in two 90c instalments over a 29-month period until the end of 2011, which would have also covered the rugby extravaganza.

Both proposals were undercut towards the end of the lockout, when Employment Relations Authority chief James Wilson recommended two instalments of just 70c each over 29 months.

Mr Wilson said that although bus drivers were "arguably underpaid" at hourly rates ranging from $14.05 to $16.75 for the Auckland workforce, difficult economic conditions meant the time was not right to bring them into line with those in similar occupations.

But the unions argued public transport was in better shape than many other industries - enjoying growing patronage, reduced diesel costs and inflation-adjusted subsidies from the Government and Auckland Regional Council.

They are understood to have recovered lost ground since Mr Wilson's recommendation, through a proposed three-stage pay deal overtaking the bus company's previous offer of $1.80.

The company says none of its Auckland services will be available between 10am and 1.30pm on Wednesday, while the drivers meet, but it promises no interruption to school runs.