BUS drivers at York company First are demanding a 16 per cent pay rise, the Evening Press can reveal.

Staff at the James Street company have submitted a claim for a basic rate of £8 an hour - a rise of up to £1.30.

That would mean an increase of 16.25 per cent, nearly seven times the current rate of inflation.

Commercial manager Peter Edwards said the firm had already met drivers' representatives twice to discuss the pay claim.

But the Evening Press understands that First bosses are unlikely to give in and pay the drivers' inflation-busting demands.

Mr Edwards said: "We have come to the annual pay review for the drivers. We have had two meetings with them, we have received their claim and we are currently exploring with them ways in which we could move towards meeting their aspirations." Meanwhile, bus workers from First Group in Yorkshire are to benefit from a new agreement on pensions.

The company has negotiated a new agreement with trade unions, led by the Transport and General Workers' Union (T&GWU), giving almost 5,000 staff the chance to join new career average schemes.

Those who are currently in a final salary scheme will maintain their position.

Updated: 11:30 Monday, April 28, 2003