Unions representing bus drivers and other employees at NZ Bus in Auckland are deciding what industrial action to take after rejecting a new pay offer.
Mediation on Monday again failed to bring an end to their dispute.
NZ Bus says it offered a new increase of 10.5%: comprising 4.2% in the first year, 3% in the second year and 3.3% in the third.
But the Combined Unions say the offer is not up to the mark as bus drivers have low pay and long hours and notice of industrial action will be issued within 48 hours. It will not involve a full strike.
NZ Bus says the offer is a substantial one in tough economic times.