Bus drivers across the North East are set for a pay increase after proposals were set out for the rise. 

Transport company Go North East announced on Friday (August 18) that it had made its drivers an offer to increase pay by £2,400 per year.

If the proposal is agreed, payments will be backdated to 1 July.

Bosses at the firm have agreed to stick with an "inflation-busting" pay proposal despite making losses of £4.3 million in its most recently published accounts, according to Go North East.

Read more: Go North East bus drivers call off strike after accepting pay rise

If the proposal, which also involves some standardisation of working practices across its six depots, is accepted, drivers will also be guaranteed a further inflation-linked pay increase next year.

The news of the pay increase comes days after Unite the union balloted 1,300 Go North East drivers, which would bring bus services to a standstill.

Unite, Britain’s leading trade union, warned that over 1,300 members could come out on strike and bring bus services in north-east England to a halt as its members are balloted for industrial action over pay.

Depots that are being balloted and would be affected by any industrial action are: Consett, Gateshead, Hexham, Percy Main (North Shields), Sunderland and Washington.

The ballot will run until Tuesday 12 September. If industrial action is voted for, strikes will likely take place from mid-September.

Unite general secretary, Sharon Graham said: “Go North East is a massive company running bus services, not just in the north-east of England, but across the country and overseas.

£Yet they treat their workers with contempt by offering real-term pay cuts with these below-inflation offers.

“Unite does what it says on the trade union tin and it always puts the jobs, pay and conditions of its members first, the workers at Go North East will be receiving Unite’s total support.”

Unite regional officer, Dave Telford added: “Strike action will inevitably cause severe disruption to bus passengers across north-east England, but this dispute is entirely the own making of Go North East’s management.

"They have had every opportunity to make an offer to meet our members’ expectations but have failed to do so.”

Despite the claims from Unite, Go North East business director, Ben Maxfield, said: “The two most talked about inflation measures, CPI and RPI, are currently running at 6.4% and 9.0% respectively.

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"Our offer of 9.11 per cent beats both these figures and means our driver pay package will be among the very best in the region.

“Unite the union are so far refusing to engage with the offer and are balloting on industrial action.

“Unite is claiming without any attempt at justification, that driver pay is not keeping up with inflation.

"Quite simply, it is a false flag, and one that could lead to unnecessary industrial action and needless disruption for passengers. Unite would be striking for something they have already been offered.”