Page last updated at 15:48 GMT, Wednesday, 8 July 2009 16:48 UK

Bus strike set after talks fail

Firstgroup
First said the recession meant it could not afford a pay increase

Bus drivers in South Yorkshire are to hold a one-day strike on Friday after management rejected their demands for a pay increase.

Talks held between transport operator First and Unite union officials at conciliation service Acas on Tuesday failed to bring an end to the dispute.

First said it could not afford any pay increase and the action would affect all its routes across the county.

United said its members had been left with "no other choice".

At Tuesday's meeting, the union rejected a 2.95% pay award based on productivity improvements at depots in Sheffield, Rotherham and Doncaster.

Company 'wrong'

Brandon Jones, deputy managing director for First, said: "I would urge the Unite union to reconsider its decision to strike on Friday which will affect the transport needs of tens of thousands of people across South Yorkshire.

"We have been clear with the union from the outset.

"Due to the economic recession, which has seen unemployment in the Yorkshire region increase by 13% in the last three months, First has no available extra money to fund a pay increase.

"We have however said we are willing to review our current pay rate, subject to productivity improvements."

Steve Clark, Unite's regional industrial organiser, said: "Our members have been left with no other choice but to take strike action this Friday.

"First Group made £122m in 2008 but there is a group mandate of no pay awards for bus workers. This is unacceptable, our members are right to expect a reasonable pay increase and the company is wrong to offer nothing to its employees.

"We are urging the company to return to the negotiating table and make a reasonable offer that recognises our members' hard work."



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