Strike action which would cripple York's bus service came a step closer today when a pay offer was turned down.

Staff at First York refused to accept the offer, made in an annual pay review, claiming they want equal wages with workers based in Leeds and Manchester.

David Bolton, the regional industrial officer for the Transport and General Workers union, said: "We have held a further meeting with management today following the rejection of the pay offer by the workers.

"At that meeting the company were unable to offer any further substantial improvements and, as a result, the union will be holding an internal ballot of its membership to see if they are prepared to take part in industrial action."

First York managing director Brian Asquith said this afternoon: "The situation is very disappointing. We are keen to reach an agreement on this year's pay offer."

Meanwhile, threatened rail strikes on June 25 and July 4 have been called off after talks between GNER and the Rail Maritime and Transport union.

Workers had feared the safety role of train guards was being degraded.

Updated: 16:31 Thursday, June 21, 2001