Bus companies have been running reduced timetables in Dunedin and Queenstown, as the industry struggles to retain enough drivers amid pay decried as deficient, as well as some driver illness.
The Otago Regional Council yesterday approved more funding for bus operators to enable drivers to get a boost in pay that will result in them receiving the 2022 living wage.
Cr Gary Kelliher said the council had no choice but to intervene, as doing anything else would have driven "even more people out of the industry".
"There is a crisis among bus drivers and a crisis in the service," he said.
Cr Kate Wilson said bus services, and the role they had in the community, had been undervalued.
People who needed buses to get to their destinations had been short changed.
"To all those bus drivers still doing it, thank you," Cr Wilson said.
Dunedin Tramways Union president Alan Savell said the top-up was a great start.
"We're happy for the drivers, but I think more it is recognition by the council for the work that we do," Mr Savell said.
Council staff were unable to say when the pay would arrive in drivers’ pockets.
That matter has been described as complex, partly because the drivers are not council employees.
Agreed pay increases in the past have taken months to materialise.
Mr Savell said the increase could stop drivers from leaving, but it was probably not enough to attract employees.
He told councillors there was no shortage of qualified drivers in the region.
"At the moment, licence holders are choosing not to work in the industry, because pay and conditions are so poor."
He also disputed claims driver illness was the cause of service cancellations and scaled-back timetables.
"It’s not Covid, it is not the flu. It is pay," Mr Savell said.
Cr Kevin Malcolm suggested blame should be directed at bus companies, rather than the regional council.
Council interim chief executive Dr Pim Borren said responsibility ultimately rested with the regional council.
"We can contract for better driver remuneration," Dr Borren said.
Use of migrant workers in the past and the public transport contracting model were factors contributing to an underpaid workforce, he said.
The Government has announced changes to the model, including allowing councils to run services in-house.
Cr Michael Laws lamented what he called systemic market failure.
"This is a catastrophic market failure that is not confined to public transport," Cr Laws said.
He cited hospitality and horticulture as two other examples.
"We haven’t been paying New Zealanders what they’re worth."
Cr Laws said the bus companies had not been carrying out the services for which they were contracted.
"They’ve reduced services. They’ve been late. Services have been cancelled."
He wanted to know how large savings had been from services not being carried out, but a figure was unavailable at yesterday’s meeting.
The move by the council was an incremental first step, at best, to compete with other sectors of the economy, he said.
"It’s still not enough to meet the market."
Cr Alexa Forbes said the council’s move was a start in "building respect through pay and better conditions".
The existing living wage is $22.75 an hour and it will rise next month to $23.65.
The council estimated the adjustment would cost about $470,000. — Additional reporting Fiona Ellis
