Bus company refuses government-funded wage rises for its own drivers (2024)

One of Australia's biggest private bus companies has turned down government funding that would have gone directly to driver wage increases, leaked documents show.

Bus Queensland has refused a state-subsidised wage deal that would have increased its drivers' wages to $35 per hour in line with other bus companies.

A leaked internal memo shows upper management did not want to accept the government's money because of the costs to implement the wage increases.

The cited implementation costs include increases to accrued annual leave balances as well as wage increases for driving work not covered by the subsidy.

Bus Queensland's school bus routes would not be covered by the government subsidy, but annual leave pay would be.

The letter, signed off by chief operating officer Paul Davies, claims the company would lose $3 million over three years if it were to pass on the wage increases.

In the letter, Mr Davies objects to the condition that the company send its new drivers to a drivers' forum, which covers topics such as violence, driver safety, and union membership.

The memo objects to the Transport Workers' Union's heavy involvement with the forum, as well as the costs involved.

"We understand the drivers' forum has been created [possibly amongst other reasons] to provide the TWU with another opportunity to advertise their services," the letter said.

"Whilst the government would subsidise parts of the costs of the new drivers attending the forum, not all costs would be covered and, more critically, this would take new drivers off the road and increase the pressure on our existing drivers and our ability to deliver our contractual requirements.

"None of these extra costs would be met by the government, although we have repeatedly requested they reconsider their position."

Bus Queensland is a private company that is contracted by Translink to run public bus routes.

It covers Translink's southern, eastern, and western regions including Ipswich, Lockyer Valley, Park Ridge, and Toowoomba.

Bus Queensland did not respond to the ABC's requests for comment.

According to the company's website, it hires 450 workers across four depots in South-East Queensland and owns a fleet of 414 buses.

A kick in the guts

A Bus Queensland worker, speaking to ABC Radio Brisbane on condition of anonymity, said the company's decision was a "kick in the guts".

The employee said they were looking for work elsewhere, as were several of their colleagues.

"It's really disappointing that we won't be getting this pay rise, and times are especially tough at the moment," they said.

"With cost of living, groceries, bills, this raise would have gone a long way.

"I'm definitely feeling a bit betrayed by Bus Queensland, after working for them for many years."

Betrayal of workers

Transport Workers' Union director of organising Josh Millroy said union workers had fought hard for the $35 per hour program.

He said low wages in the sector were causing chronic staffing shortages across Queensland, leading to high cancellations and unreliable services.

Mr Millroy said Bus Queensland was already struggling to cover its urban routes, leading to high cancellation rates.

He said he expected to see staff shortages worsen at Bus Queensland in light of its refusal to pass on pay rises to its drivers.

"This company is refusing to pass on this increase to its employees who are struggling during a cost-of-living crisis," Mr Millroy said.

"These drivers are frontline workers who deliver a vital service for the community.

"It's time they got the pay, respect, and conditions they deserve from dodgy operators like Bus Queensland."

A Translink spokesperson said the funding was aimed at easing cost-of-living pressures on Queensland's hard-working bus drivers.

The spokesperson said the vast majority of other bus companies had agreed to pass on the wage increases to workers.

"Translink is disappointed on behalf of the drivers at Bus Queensland that their employer has refused to accept the Queensland government's wage proposal unlike the vast majority of other delivery partners," the spokesperson said.

"Twenty private delivery partners, representing 72 per cent of bus drivers eligible to receive the wage boost, have currently accepted the proposal and are set to experience the benefits."

The funding package was announced by the Queensland government in December for South-East Queensland and Regional Urban bus companies contracted by Translink.

The $155 million package was intended to equalise bus driver wages to $35 per hour so drivers on Translink services were paid the same.

Funding was given on the condition that bus companies uphold certain workplace health and safety standards and agree to send its new recruits to driver forums.

From July 2025, eligible drivers will start receiving $35 per hour including some additional pay backdated to January 2024.