Codiac Transpo union rejects Moncton contract offer

Moncton’s latest contract offer to the Amalgamated Transit Union Local 1290 was rejected Wednesday by the city's 4 p.m. deadline.

The contract offer, which included a wage increase of 13.75 per cent over a five-year term, will now be withdrawn, according to the city.

Union members told CBC News it was a "bad deal."

They say the city agreed on a deal more than a year ago, then backed out.

City spokesman Paul Thomson denied the union members' claims that there had been a previous agreement.

Union members say they won't move forward until they receive an improved offer.

The city says this was the best offer, and since it was rejected, any new one would be lower.

The next step is for city council to meet as quickly as possible to discuss going forward, said Thomson.

The union has officially notified the city that workers won't strike without 10 days notice, he said.

"So from a customer perspective that does take the pressure off the people not knowing whether the transit system is going to be running from day to day, 10 days notice does take the pressure off the customers a little bit. So it's a smart [public relations] move on their part," Thomson said.

Thomson said locking workers out remains a viable option for the city.

"A lockout is still something that we don't want to take off the table as a tool that we have to perhaps be a catalyst for a settlement. But at this point, I think. we've got other options and other avenues that we want to explore," he said.

Thomson said it's very difficult for the city to run a transit system with the constant threat of a strike. He said there are vacancies at Codiac Transpo that can't be filled because of the uncertainty.

"Who's going to leave a job to work for a transit system in this type of scenario where you just don't know from one week to the next whether you're going to be on strike or not?" he said.

The union has declined to comment on the contract dispute.

Workers in ATU Local 1290 have been without a contract since June 2010.

The proposed deal would've been retroactive to July 2010 and contains improved health and dental benefits. The city’s offer would've also brought a bus driver’s annual salary to $51,000 in 2015.

The union is requesting a 23 per cent wage hike over five years, which would bring a driver’s annual salary to $55,120 in 2015, according to the city.

The union has already voted 94 per cent in favour of a strike.

Codiac Transpo operates in Moncton, Dieppe, Riverview and Lakeside.

The company says it provided 2.5 million passenger trips in 2011.

Union members also told CBC News they've talked to the labour board about the previous deal they say the city made with the union.

They're hoping a hearing will clear up what they say the city negotiated with them last year and prove there actually had been a deal.

Several transit users told CBC News they depend on the bus to get around, and didn't know what they'd do if buses ceased operation.