Union rejects ERA's bus pay solution

The Employment Relations Authority has made public its recommendations to settle the pay dispute between NZ Bus and Auckland drivers.

The ERA suggested a wage increase of 4.2 per cent for the first 16 months, back-paid to July this year, then 3.9 per cent for the next 14 months from November next year.

Both increases amounted to 70 cents an hour.

The collective agreement would expire on December 31, 2011 after the Rugby World Cup, ERA recommended.

NZ Bus agreed to the recommendations and requested they should be released to the public.

Combined Bus Unions' spokesman Karl Andersen said the drivers could not accept the recommendations, which were lower than the offer NZ Bus had put on the table.

But they could accept 70 cents for a 12-month deal from July this year. "However, if the company want a longer term deal, then the $1.80 previously discussed needs to be part of the package. The proposal from the facilitator to reduce $1.80 to $1.40 is totally unacceptable."

Mr Andersen said it was disappointing the facilitator had taken the recession into account when NZ Bus was "totally unaffected. Patronage is up, revenue is up, diesel costs are down - everything's fine."

- NZPA