Almost 750 Stagecoach staff are involved in the dispute

Staff employed by Stagecoach at depots in Newcastle and South Tyneside have threatened industrial action over a long-running pay row.

Company bosses have increased a previous offer of 4%, which was turned down by members of the Transport and General Workers Union (TGWU).

If the new offer is not accepted, staff have threatened a series of one-day stoppages, starting on 3 November.

A union spokesman said: "This dispute has been dragging on since May.

"Our members were offered a 4% increase, but voted by a narrow margin to turn this down.

"A vote will be held on a renewed offer soon."

Staff had warned of a strike on 27 October. But this has been called off pending the new ballot.

Negotiations ongoing

A spokesman for Stagecoach said: "We have been notified by the Transport and General Workers Union of one day strikes which are planned to take place at our two Newcastle depots and also at our depot in South Shields.

"Negotiations with employee representatives have been ongoing since April of this year.

"In August of this year the company decided to implement an increase of 4%, which was well above the rate of inflation.

"In addition, in September the rate of pay for drivers with less than two years service increased to produce an overall increase for this group of drivers of over 8%.

"Agreement has been reached with Stagecoach North East's depots on Teesside and in Sunderland and the engineering unions have also settled on a basis similar to the offer made to the drivers in Newcastle and South Shields.

"If the strikes were to go ahead, in the region of 150,000 passenger journeys face disruption each day."