The Rail, Tram and Bus Union (RTBU) is throwing its support behind a state proposal to put Newcastle buses back in public hands.

It’s understood the call follows reports the NSW Government will investigate the possibility of returning the local service to civic ownership once Keolis’ contract ends at the end of 2027.

The privatisation of the city’s buses was approved by the former Coalition in 2017 – via a 10-year deal – with the promise of improved operating efficiency.

However, the RTBU and Keolis Hunter have been at loggerheads for some time over many issues, including driver safety.

That’s why the union is on board with the latest move.

RTBU NSW Tram and Bus Division president Peter Grech admitted after years of failed privatisation, a return to public hands would come as welcome relief to commuters and drivers in the region.

“The fact the NSW Government has confirmed it is currently investigating the situation is a very positive sign,” he said.

“People in the Hunter deserve a quality service.

“One MP described the privatisation of our buses as an abject failure.

“And, we couldn’t agree more.

“Commuters and bus drivers have borne the brunt of the failed privatisation experiment in Newcastle.

“It’s time to start rebuilding a bus service the community can rely on.

“The NSW Government has a chance to turn it all around… and it’s heartening to see that it’s being actively investigated.”

Meanwhile, The McKell Institute is hosting a community launch of a new report examining the failed privatisation experiment of Newcastle Buses and the pathway back to public ownership.

And, residents are invited to attend the event at NEX on Thursday 12 March from 6.30pm.

In response to the RTBU’s assertions, Keolis issued the following statement:

Keolis reaffirms its commitment to delivering a safe, modern and reliable public transport network for a growing Newcastle, firmly rejecting claims of declining standards as both inaccurate and dismissive of the dedicated people who keep the city moving.

Spokesperson Jay Zmijewski said the commentary about network performance “does not reflect reality and overlooks the efforts of the drivers, maintainers, controllers, customer service and management teams who keep this city moving every day.”

Safety and reliability have strengthened

Since taking responsibility for Newcastle’s integrated bus, light rail and ferry network in 2017, Keolis has prioritised safety, reliability and workforce support and the strong results are clear.

• The Lost Time Injury Frequency Rate has fallen from 40 to 5, significantly improving workplace safety
• Road accidents per 100,000 kilometres have reduced from four to 2.5, improving safety for both employees and passengers
• Punctuality is consistently above 95%
• Before the pandemic and staff shortage, reliability exceeded 99.5%. Currently, with industrial action, bus reliability remains at around 98.24%

“These improvements reflect safer work environments and reliable services for our customers,” the spokesperson said.

“Despite global workforce pressures since COVID19, Newcastle’s network continues to perform strongly against industry benchmarks.”

Backing workers with industry‑leading wages

Driver pay has been a focus of commentary during the enterprise bargaining negotiations, but the facts are clear.

When Keolis assumed operations, the previous 2.5% salary cap was removed.

Wage increases have since been negotiated above the national Wage Price Index, making Newcastle bus drivers the highest paid in NSW.

“We recently proposed a further 12% increase over three years with no changes to conditions, but this offer was declined by the union,” Mr Zmijewski said.

With bargaining progress currently stalled, Keolis has lodged an Intractable Bargaining application to help move the process forward and provide a clear pathway for employees to receive the wage increases and certainty they deserve.

This step reflects Keolis’ commitment to supporting its people and ensuring the Hunter community continues to receive a safe and reliable public transport service.

“We’ve taken this step to support a constructive resolution and to ensure employees can benefit from the fair and practical outcomes we’ve been working toward,” Mr Zmijewski said.

“Some recent public claims have created confusion, and it’s important that both our workforce and the community have clear, accurate information about the work being done every day to keep services running.

“Our focus remains on supporting our people, delivering dependable transport for the Hunter, and progressing bargaining in a fair and responsible way.”

Patronage has increased significantly since privatisation following innovative timetable changes

The redesigned bus network, implemented early in the contract, simplified routes and increased frequency along the corridors where people travel most.

Within a year:

• Adult bus patronage increased 11%
• Overall public transport use rose 23% following the launch of light rail

“Using the same level of resources, the redesigned network was purpose-built to deliver simpler routes and more frequent services where people travel most,” Mr Zmijewski said.

“And, the results were clear.

“Within a year, adult bus patronage rose 11% and overall public transport use increased by 23% following the introduction of light rail.

“While patronage fell during COVID‑19, as it did globally, it continues to steadily recover.”

Supporting a growing region

The Hunter region has grown by about 10% over the past eight years… and transport demand is evolving with it.

“Throughout this period, we’ve worked closely with government and local partners to identify opportunities to strengthen services as the city grows – enhancing frequencies on key corridors to exploring future on‑demand options that better match emerging travel patterns,” Mr Zmijewski said.

“We’ve delivered practical innovations such as event shuttles, Park and Ride services, and an autonomous shuttle trial, helping to support a modern, connected and vibrant Newcastle.

“We’re also preparing for the future.

“Some assets within the network are ageing, and the broader industry is moving toward zero‑emission fleets.

“Drawing on international experience, we have proposed depot electrification plans to ensure the Hunter is ready for electric bus operations as the state transitions.”

A call for evidence‑based discussion

“Any discussion about how transport services are structured and funded should be grounded in evidence,” Mr Zmijewski said.

“We will continue backing our workforce, investing in safety, and working with government and the community to deliver a public transport network that supports a growing Newcastle.

“What the city needs now is constructive collaboration – not commentary that talks down the real achievements of the people who keep this region moving.”

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