Otago bus drivers to become some of the highest paid in NZ with surprise $5 pay rise

Friday, 30 September 2022

More than 100 people will wake up on Saturday as some of the highest paid bus drivers in the country.

In a surprise announcement by the Otago Regional Council on Friday, the average wage for a bus driver in Otago will become $27.76, effective October 1.

It was $5 more than what the ORC funded a few months ago, and a bigger boost than other councils had given drivers, such as the $4.25 increase for Wellington in December, the $2-3 recently given to Auckland drivers and the 75 cents given to Christchurch drivers.

Canterbury’s drivers were now some of the lowest paid in the country, with some drivers working 12-hour shifts to make ends meet.

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**

Otago’s boost followed “a huge struggle, a long struggle” for better pay, Tramways Union Dunedin branch president Alan Savell said.

He had “no idea” this announcement was coming, only finding out after Stuff contacted a colleague, but said “finally, we’re being recognised”.

Services had been reduced for several months in many cities, with many bus drivers moving on to better paid jobs as Taxi or Uber drivers, Savell said.

While Covid-19 and illness had been attributed to service reduction, Savell said wages had been an issue for years.

He believed increased media exposure of their struggle, such as covering the Wellington bus driver strike, had helped.

“Drivers noticed a real difference in attitudes of our passengers. A lot more taking the effort to say thank you, good morning… some say ‘we didn’t realise you were paid so low’.”

He was hopeful drivers who left would return to the industry, saying there were about 2000 people in the region who had the necessary licence and permits.

Otago Regional Council (ORC) interim chief executive Pim Borren said in a statement to media the new average was the minimum hourly rate of pay required by the Government to recruit overseas drivers.

Borren said he believed the driver labour force had dried up because of Covid-19, as typically New Zealand relied on recruiting overseas.

This move was him taking “direct responsibility and accountability” for improving service levels. The status quo was “not an option”, he said.

The wage increase was agreed at a private ORC meeting earlier this week.

However, effective immediately wasn’t the same as an instant $5 in their pockets. An ORC spokesperson could not confirm if agreements had been reached with the drivers’ employers or NZTA, but there would be a backpay to October 1 if there were delays, they said.

The fight for better pay had been “tumultuous” for the Dunedin and Queenstown-based drivers, Savell said. It followed years of broken promises and delayed wage increases.

In 2020 drivers were told they’d earn the living wage, but it took around 15 months to finalise it with providers.

Providers, like Go Bus and Ritchie, employed the bus drivers. They could increase wages above the council’s set average, and had done in Christchurch, said Lindsay Chappell of the Amalgamated Workers Union NZ (AWUNZ).

He said the Christchurch drivers’ average was $24 an hour after top-ups from providers.

But he said providers and councils “don’t think about the drivers until passengers have them on,” as they had been doing after months of reduced services.

Savell was hopeful it signalled an increase in wages nationwide, as Dunedin may now attract drivers working elsewhere in the country, he said.

Clarification: This article was clarified to show the dollar average based on what councils funded the drivers. The figure may change depending on area, provider, union and contract.