Pay Increases For South Island Bus Drivers Ahead Of FPA Negotiations

Bus drivers in Dunedin, Christchurch and Timaru have all received pay increases over the last week following negotiation between unions, Government and regional councils, and FIRST Union Southern Regional Secretary Paul Watson says a pathway is in place across the South Island for upcoming Fair Pay Agreement discussions, including a new Memorandum of Understanding (MOU) between unions, bus operators and Canterbury Regional Council.

"The ultimate goal is to recruit and retain good bus drivers in the industry during a shortage and these pay increases will certainly help ahead of signing a Fair Pay Agreement," said Mr Watson.

"It’s a difficult and sometimes dangerous job that desperately needs more recruitment as well as experienced drivers who will stay in the industry because they’re assured of a pathway to better pay and conditions."

Mr Watson said the MOU for Timaru signed by unions, Waka Kotahi, Canterbury Regional Council and bus operator Ritchies offered an initial framework for upcoming FPA bargaining as well as a pay increase to $27 per hour.

"Our expectation is that this rate will be further lifted over time to comparable pay with drivers in other cities, but it’s a good start and is desperately needed," said Mr Watson.

"Unions, bus operators and councils have had productive and cooperative discussions over the last year or so, and this bodes well for the future."

Catherine Bowden, a Dunedin bus driver and FIRST Union member whose new pay rate of $30 per hour was confirmed earlier this week by the Otago Regional Council, said the pay increase - her third in seven months - showed that lessons were being learned following the scrapped Public Transport Operating Model (PTOM), which had historically kept drivers’ wages low due to competition between bus companies for contracts.

"Our pay hadn’t kept up with the cost of living, but I think the writing is on the wall now due to the driver shortage and the Councillors are being proactive about recruitment with this latest pay increase," said Ms Bowden.

"PTOM wasn’t fit for purpose, and was part of a race to the bottom that started with the Employment Contracts Act."

"It was just not the case that as a bus driver, you could live in a positive way in your community and enjoy the things we tend to think of as important, like buying a house or spending enough time with family."

"Fair Pay Agreements will help along with anything else that moves us away from being a low-wage economy and towards more productive investment in people."

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