THE threat of traffic gridlock in York was looming closer today after drivers at bus company First overwhelmingly rejected a new pay deal.

Staff at the beleaguered bus company threw out the latest offer from management - without a single vote in favour.

They voted 176 to nil to reject a £7 per hour basic wage in a secret ballot on Monday. The emphatic rejection will send First management back to the drawing board in an effort to avoid a potentially-crippling transport strike in York.

Bosses at the James Street company had hoped that this offer, the second to be balloted upon, would have appealed to drivers and the Transport and General Workers' Union (T&GWU).

It offered a £7 per hour basic wage and relaxed several contentious "productivity" issues, which had caused concern.

That hope has been utterly dashed by Monday's ballot and opens the way to the prospect of industrial action.

Many staff, had they accepted the First offer, would have seen their pay increase from £6.58 to £7 - or an increase of 6.3 per cent. But the Evening Press understands that drivers are holding out for an £8 per hour basic rate, or a 21.5 per cent rise, something which First insiders claim is "utterly unrealistic under the present economic conditions".

A bus strike in York could cause traffic chaos in the city. It was unclear whether both Metro and Park&Ride services would be affected, but it was clear that huge numbers of extra cars would be brought into an already congested city centre in the event of a drivers' strike.

First commercial manager Peter Edwards said it was important to remember that negotiations were still continuing.

"I find it hard to understand how someone could reject out of hand the offer of an increase up to £7 per hour," he said.

"We think the current offer was extremely generous under the current economic climate. We will continue negotiations, following this rejection, and are hoping to table a meeting next week."

Coun Ann Reid, City of York Council's executive member for transport, said: "First has introduced the ten-minute Metro system, which has proved to be very popular and has increased bus patronage.

"Any disruption to that service will lead to people abandoning the bus and going into their cars. This would be of great concern to us."

Tourism bosses also fear the implications of a bus strike in York. Kay Hyde, of York Tourism Bureau, said: "A bus strike would have more direct impact on residents than on visitors. However, we have a policy of encouraging tourists to use public transport and the Park&Ride services are particularly popular with our day visitors."

No one from the T&GWU was available for comment.

Updated: 11:38 Thursday, June 12, 2003