Bus drivers underpaid, ERA says

The week-long bus lockout disrupted tens of thousands of passengers. Photo / The Aucklander

Bus drivers are probably underpaid, says the Employment Relations Authority, but it believes the time is not right to bring them into line with workers in similar occupations.

Authority chief James Wilson has paid tribute to the work of bus drivers in recommending terms for settling the bitter pay dispute which led to a week-long lockout by NZ Bus of its Auckland workforce, disrupting tens of thousands of passengers until services resumed on Thursday.

"I have expressed to both parties that I have a great deal of respect for the work of bus drivers and the conditions under which they provide extremely valuable service in often trying and occasionally dangerous circumstances," Mr Wilson said in his decision.

"It is arguable that, when compared to similar occupations or occupations of similar worth, bus drivers are underpaid."

But he said that, in view of all the other circumstances of the company's pay negotiations, including its financial performance, he did not believe the time was right or that collective bargaining was the appropriate forum to address "a long-standing deficiency in the pay structures of drivers".

"Such movement would have wide-ranging implications ... and are well beyond the scope of a single, albeit large, employer to address in the course of a single bargaining round."

Despite agreeing to suspend a notice of work-to-rule industrial action which prompted NZ Bus to lock them out and cancel all services for seven days, about 500 drivers and cleaners voted by a 95 per cent margin on Friday to reject Mr Wilson's proposal for settling their pay dispute.

His recommendation, which the company has endorsed, includes a 4.2 per cent pay rise backdated to July to be followed by 3.9 per cent for 14 months from November next year.

That would mean two increases of 70c an hour on current wages, which range from $14.05c to $16.75c, but no change to the company's overtime rate of time and a quarter.

The recommendation amounts to 40c an hour less than a previous company offer of $1.80c in three instalments over 36 months, although for a shorter term of 30 months.

Combined bus unions spokesman Karl Andersen, representing 875 drivers and cleaners, says they would be prepared to accept only the first 70c instalment as a 12-month deal backdated from July.

The company would have to reinstate the offer of $1.80c if it wanted a longer term.

He said on Friday that the bus company was enjoying increased patronage and lower diesel costs, so it was disappointing that Mr Wilson had taken the recession into account when making his recommendation.

Mr Wilson said he was satisfied from figures provided to him that NZ Bus was "not in a financial position to meet a major realignment of bus drivers' wages at the current time".

The lockout lost NZ Bus about $1.1 million in subsidies which the Auckland Regional Transport Authority says it will withhold for undelivered services, and the drivers are about $1.15 million out of pocket.

* Wage rates

Current rates: $14.05c to $16.75c an hour plus time and a quarter overtime.

What the company offered before the lockout: $1.80c an hour increase in three stages over 36 months - 70c now, 50c next year and 60c in 2011

What the Employment Relations Authority recommended last week: $1.40c in two stages over 30 months - 70c now, backdated to July, plus 70c in November next year