Preparations for a strike ballot which could have major effects on York's bus network were being made today following a pay dispute.

First York workers have turned down a pay deal, claiming they want wages in parity with their colleagues in Manchester and Leeds. Wages are higher in those cities because of their size and the larger demand for public transport.

But an increase of that size in York would mean excessive fare rises, First York's management said.

And the company said a huge investment in the company demonstrated its commitment to staff.

Managing director Brian Asquith said: "On the table at present is an offer over three per cent, linked to a schedules agreement that gives staff many benefits over the old agreements.

"First York has clearly demonstrated its commitment to its staff in the past by increasing rates of pay well above inflation. We are investing massively this year in new equipment, securing both the long term future of the company and its staff."

But the Transport and General Workers' Union said today that, along with variations between First Group companies elsewhere in the country, staff are concerned about variations within the York company.

David Bolton, the union's regional industrial officer, said preparations for the ballot to find out the willingness for industrial action were being made today. He expects it to be held over a few days next week.

Meanwhile, City of York Council have said a bus service between Grimston Bar and Wheldrake, Dunnington and Elvington will be cancelled next month. The C2 connection, which was launched with a Government grant last year, would stop at the end of the college term in July. The council was attempting to restart it, on a reduced basis, in September.

A council spokeswoman said: "The service hasn't had a lot of use, and the Government money has now dried up, so we are planning to stop it in July. It has been used by students from these villages who change at Grimston Bar to travel to York College, and it will be continued until the end of the college year for them. We are looking at what service we can provide for September."

Updated: 10:46 Friday, June 22, 2001