Go Bus has signed an agreement with Waikato Regional Council which will see all Hamilton urban bus drivers and bus cleaners receive the $21.15 per hour living wage.
The company worked with council to increase wages under the public transport operating model (PTOM) system.
PTOM is a service contracting framework under the Land Transport Management Act (LTMA) 2003, ratified by NZ Transport Agency (NZTA).
The company says there was a “significantly complex process” on how funding could be found to increase drivers’ wages.
The PTOM made it “near impossible” for bus companies alone to meet increased wage levels expected in this environment, it says.
Go Bus chief operations officer Nigel Piper says it was recognised higher wages were needed “to attract and retain drivers to the industry”.
“The current funding arrangements to Go Bus from the council did not allow this to happen. Hence the negotiations and the agreement for extra funding was required.
“Significant credit should be given to council and their co-funder, the NZ Transport Agency, in achieving this outcome with us.
“The support of Hamilton City Council is also acknowledged. Waikato Region listened and understood our position and worked tirelessly with us to make the extra funding available.
“Recognising that driver working conditions and remuneration are important to both parties, we are always in dialogue with councils and transport authorities on how and where these might need to be improved.
“A close working partnership will always achieve a lot more than any aggressive, and disruptive approaches some unions might advocate,” Piper says.
The outcome is also the result of two years of negotiations with First Union which claims the company tried to avoid increasing wages.
First Union secretary for transport, manufacturing and logistics Jared Abbott says “sustained attempts to derail bargaining … was a real hurdle for the drivers, who just wanted a living wage and some security of employment”.
“Through thick and thin, our members withstood all of this and won, and we’re proud of that.
“Waikato Regional Council has been an exemplar of how we want to work with councils to ensure that drivers get a fair deal and passengers get a great service.
“We will be approaching other councils to achieve the same alongside the New Zealand Transport Authority.
“Our members are delighted that we’ve achieved this for urban drivers in Waikato, but our goal is for all drivers to achieve living wages in New Zealand, including school bus drivers, so there is more work to be done,” Abbott says.
However, Go Bus denies it stalled negotiations and says it “significantly increased wages over the last 18 months by more than council funding allowed”.
“Go Bus is making an additional significant contribution to the increased wage rate just announced. The idea that we haven’t done anything is completely untrue,” Piper says.
