STAGECOACH East workers in Fife have "emphatically" rejected the latest pay offer in a row which saw strike action being overwhelmingly backed earlier this week.

Unite Scotland have said around 600 Stagecoach East workers across Fife, Perth and Strathtay have knocked back the latest offer from the company.

In Fife, 440 workers turned down the offer of 2.4 per cent backdated to May 2021 by 90 per cent.

Unite has acknowledged that while the latest offer represented a ‘step forward’ it maintains that there is ‘some distance to go’ to meeting the pay demands of its members. 

Unite has demanded Stagecoach meet its ‘fair’ pay claim of the Retail Price Index inflation figure (3.8 per cent - July) plus one per cent. 

The workers involved in the dispute are drivers, engineering staff, administrative workers, and cleaners. 

This week the Stagecoach East workers also overwhelmingly backed taking strike action in the pay dispute, while voting on the latest offer from the company. 

Fife workers backed strike action by 93.4 per cent in a 74.4 per cent ballot turnout.

Dougie Maguire, Unite regional coordinator, said: “The Stagecoach East workers across Fife, Perth and Strathtay have emphatically rejected the latest pay offer while also strongly backing strike action this week.

"Unite’s members democratically make up their own minds whether any offer from the company is good enough, and they have clearly told Stagecoach to go back and think again.

“The company has tried and failed to suggest that our mandate for strike action was solely related to a previous pay offer. It was not as these rejections demonstrate. 

"We hope the public understand, despite confusing statements from the company, that Stagecoach East has been well behind the curve here, and they have some distance to go in order to meet the fair pay demands of our members. We are dealing with an extremely profitable company.

“We want to emphasise that our ambition has been to resolve this dispute amicably, and without our members having to take strike action. Yet, our members have had no option but to consider walking because the company hasn’t done enough talking. The company know what our members are asking for, and it’s now up to them.” 

A Stagecoach East Scotland spokesperson said: “We are disappointed at the result of the most recent vote on our proposals.

"Our priority is to agree an offer that is fair to our people, and which also ensures the long-term sustainability of the bus network for local communities. 

"We want to work together with the union on a deal which will achieve both of these objectives at a time when passenger numbers using the country's bus networks are significantly below the level needed to cover the costs of running services. 

"We are committed to seeking an agreement and remain open to continuing discussions with the union."

Earlier this week, Stagecoach East Scotland confirmed it had made a fresh offer to Fife employees in a bid to break the deadlock in an ongoing pay dispute.

The bus operator claimed it was “leaving no stone unturned” in an effort to reach a settlement with Unite.

The Press reported recently that Stagecoach bus services in West Fife could be “severely disrupted” this autumn if workers – drivers, engineering staff, administrative workers, and cleaners – voted for industrial action.

Employees at Dunfermline’s bus depot and other Fife sites have now been offered a pay increase of 2.4 per cent by Stagecoach, backdated to May 1 this year.

The rise would see employees receiving up to £633.33 more per year.
As part of the deal, new-start drivers would reach the full pay rate after six months – rather than 12 – to help their career path in the sector.

The new deal follows a 2.5 per cent pay rise for Stagecoach East Scotland employees in May 2020.

David Frenz, operations director at Stagecoach East Scotland, had previously said: “Buses are a lifeline for local people in Fife.

“We are committed to ensuring our people who keep our communities connected are properly rewarded, particularly after their contribution to the country over the past 18 months of the pandemic.

“We have worked tirelessly to protect the jobs of our people during the pandemic and done everything we reasonably can to hold constructive discussions with Unite to reach a sensible and sustainable pay agreement across our bus depots in Fife.

“We are leaving no stone unturned in a bid to reach a settlement. That is why we have put a fresh pay offer to Unite which would give employees a 2.4 per cent pay increase.”

Bus services are facing a challenging financial environment with passenger levels significantly down on pre-COVID levels.

Passenger fares are significantly short of what is needed to cover the day-to-day costs of running services without Scottish Government support, Stagecoach says.

Mr Frenz added: “We would urge Unite to end the uncertainty for our people and the customers who rely on bus services.

“Strike action is completely unnecessary and would simply damage the lives and livelihoods of hard-working people, including our employees, as well as the region’s businesses. We would urge Unite to put communities first and talk, not walk.”