Arriva bus drivers are to strike on Monday, 3 July, union bosses announced today.

The Transport and General Workers' Union has told the company that bus drivers in Teesside and County Durham will take industrial action for one day.

The decision follows the rejection of a revised Arriva pay offer by drivers at a ballot yesterday.

Iain McInroy, operations director of Arriva North East, said: "The TGWU has informed us this morning that our second revised offer has not been accepted by our drivers. We are clearly disappointed.

"This offer delivered incremental increases totalling 14.2 per cent, meeting the £8 an hour pay level, by October 2007. It also included backpay to February 2006. This was our final offer: it is fair and reasonable and is well above the rate of inflation. It was also an offer that had the TGWU's full support.

"Our main concern is for our customers, who will again be inconvenienced by this strike action. Many people in this region depend on our services for their day to day commuting, shopping and social needs. The disruption will have a costly and damaging effect on our drivers, customers, our business and the region.

"We have to ensure that our pay rates reflect local market conditions. If we met the demands of our drivers, we would need to increase fares significantly. It would also seriously undermine the viability of routes and services in the region.

"Clearly we are available for discussion with the TGWU at any point."