The New South Wales Government has committed A$200 million to support wage increases for private bus drivers, according to The National Tribute. The funding aims to improve recruitment and retention while addressing persistent workforce shortages that have disrupted services across Greater Sydney and outer metropolitan areas.
The package will be tied directly to negotiated wage increases and is expected to benefit more than 8,000 bus drivers employed by private operators. Bus operators will also be expected to contribute to the pay rises, with government funding contingent on successful enterprise bargaining with unions.
Industry welcomes move
BusNSW welcomed the announcement, describing it as a significant investment in the industry's workforce and the long-term sustainability of contracted bus services.
The funding follows recommendations from the NSW Bus Industry Taskforce, which identified improved driver pay and stronger recognition of the profession as key to tackling recruitment and retention challenges.
BusNSW executive director Matt Threlkeld said bus drivers play an essential role in connecting communities with employment, education and healthcare, according to Australasia Bus and Coach news.
"BusNSW and the operators currently bargaining for new enterprise agreements have enormous respect for the role of bus drivers as the frontline representatives of their businesses, connecting communities with employment, education, healthcare and other essential services every day," he said.
"This funding represents an important investment in the industry’s workforce and will assist operators to attract and retain drivers, helping to address workforce shortages and improve service reliability for passengers."
Broader reforms
The funding package also supports broader workforce initiatives. These include expanded access to part-time work to encourage more women into the profession, enhanced training opportunities and improved workplace conditions such as more practical meal break arrangements.
Threlkeld said these measures would strengthen the industry's long-term workforce.
"These measures complement improved remuneration and will help make bus driving a more attractive career, while improving productivity and strengthening the industry’s workforce into the future," he said.
He added that BusNSW and the six operators involved in multi-enterprise bargaining would continue working with the Transport Workers' Union and the NSW Government to finalise the funding package.
"Our objective is to achieve a practical and commercially viable outcome that appropriately recognises drivers, supports operators to deliver reliable services and provides long-term value for passengers, taxpayers and the NSW government," he said.
Threlkeld also said the investment reinforces the benefits of the state's private bus operator model.
"This investment further reinforces the value of contracting private bus operators in New South Wales, ensuring the NSW government continues to receive excellent value from its investment while supporting the delivery of safe, reliable and high-quality public transport services to communities across the state," he said.
Shortage eases
The Minns Labor Government said improving bus driver pay forms part of its broader strategy to rebuild the state's bus network.
Driver shortages had previously exceeded 500, contributing to frequent service cancellations. As of last week, the shortfall had fallen to 168 drivers.
Bus drivers currently earn an average of A$33 an hour. However, nine in ten newly recruited drivers leave the industry within six months, highlighting ongoing retention challenges.
Women account for just 6% of Sydney's bus driver workforce. The government hopes improved flexible working arrangements and better workplace facilities will encourage greater female participation.
Long-term investment
Since taking office, the Minns Government has added 5,910 bus services across Greater Sydney. It has also restored withdrawn routes, introduced five permanent new services and ordered 1,089 new buses, including articulated and double-decker vehicles.
The government has also upgraded more than 30 bus driver facilities, including meal rooms and bathrooms.
Transport Minister John Graham said the funding sends a clear message that bus drivers are valued.
“We value our bus drivers who get millions of passengers safely to their destination each week, often in the challenging conditions of our most traffic-congested parts of Sydney.
“Tieing funding to better wages will send an unequivocal message that we respect your work, and we want to retain drivers for the long-term."
Transport Secretary Josh Murray said better pay and working conditions would strengthen workforce stability.
“This agreement brings fairness and consistency to the bus network by recognising drivers as skilled professionals, no matter where they work across Greater Sydney and the outer metropolitan areas.
“When drivers feel safe, supported and fairly paid, they stay in the industry and that stability is critical to reducing cancellations and improving day to day reliability for passengers.”
The wage package forms part of the government's broader strategy to rebuild the bus workforce, reduce service cancellations and create a more sustainable public transport system across New South Wales.