Keolis Downer Hunter will reset its Enterprise Agreement (EA) negotiations with the RTBU following the outcome of last week’s employee vote.

The operator of Newcastle Transport confirmed it was disillusioned its proposed EA was knocked back by the Rail, Tram and Bus Union members following a year of bargaining and extension consultation.

However, the company reaffirmed its commitment to continuing talks and delivering a suitable pay outcome for workers as soon as possible.

“We are disappointed that our strong offer has been rejected, particularly given it included above industry wage increases and no loss of any existing terms and conditions,” operations manager Daniel Collis said.

The proposed EA included a 15.5% increase over four years, progressing experienced drivers to over $40 per hour, a key union claim, as well as an additional 8% increase for Trainee Level 1 employees.

“Since the commencement of the Keolis Downer Hunter contract in Newcastle, the previous 2.5% wage cap has been removed and wage outcomes for drivers have increased significantly,” Mr Collis said.

“Today, our employees receive some of the highest pay and conditions for bus drivers in NSW, supported by one of the most comprehensive and well-developed Enterprise Agreements in the state.

“The proposed EA would have further strengthened certainty, security and progression for our people.”

Following the vote outcome, Keolis Downer Hunter met with the RTBU to return to the bargaining table and work constructively toward a timely agreement, in the hope of resolving negotiations and avoiding further disruption to the community.

Mr Collis admitted that during the meeting, the union presented an expanded set of expectations that went beyond the scope of the proposal and could not be supported in their current form.

More recently, the RTBU advised KDH it could support a three-year agreement with annual wage increases of 4%.

The company has taken this feedback into account and moved quickly to put forward a revised offer that reflects this position, proposing a three-year term, delivering a total increase of 12% over the life of the agreement, including an additional 6% for Trainee Level 1 employees.

All existing terms and conditions would be retained under the proposal, ensuring KDH drivers continue to receive the highest pay rates and best conditions in NSW.

Mr Collis also addressed claims circulating publicly about proposed changes to rostered hours and shift lengths.

“Nothing in the proposed EA changes the current protections,” he explained.

“Drivers cannot be rostered for less than seven ordinary hours or more than nine ordinary hours without overtime, and income protection remains fully in place to safeguard average earnings.”

Despite ongoing discussions, the RTBU proceeded with a 24-hour stoppage on Friday 12 December, resulting in the suspension of all bus services, including school runs.

“We respect the union’s right to take protected industrial action,” Mr Collis said.

“However, we are deeply disappointed by the significant impact this action had on customers, particularly vulnerable passengers and school children.”

KDH will continue consulting closely with employees and their representatives to progress to a vote in the coming weeks.

If the proposed EA is not approved, KDH may need to seek assistance from the Fair Work Commission.

“Our focus is on resolving this matter as quickly as possible so services can operate reliably and consistently for the community, while continuing to work toward a fair and sustainable outcome for our people,” he added.

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