First said it wanted to reward its efficient drivers

The Transport and General Workers' Union (T&G) in Scotland welcomed the move and said it reflected the work carried out by bus drivers.

Drivers will see their hourly rate climb from �7.25 to �8 following a ballot of workers last week.

The package also increases mini-bus drivers' pay, from an hourly rate of �5.75 to �8.

The deal was accepted by a two to one majority in a ballot of the workforce last Friday.

Mick Dowds, T&G convener, said it was "high time" professional workers received a professional wage.

With the new pay agreement we are now able to offer the most competitive rates and widest choice of working hours within Glasgow Eric Stewart First Group

He said: "We are extremely pleased with this outcome, we have achieved a flat rate pay deal for the entire workforce of �8 an hour.

"The new agreement offers employment stability and recognises the vital role which bus drivers pay in the transport infrastructure of greater Glasgow."

Eric Stewart, First Glasgow's managing director, said it was important to reward its drivers for their efforts.

He said: "With the new pay agreement we are now able to offer the most competitive rates and widest choice of working hours within Glasgow for our industry, backed up by one of the best pension schemes and comprehensive training.

"We will continue to work with colleagues at the T&G to ensure we remain the employer of choice for our industry and to welcome new employees who want to make a commitment to the bus industry."