Hundreds of Newcastle buses have stopped running today as drivers took to the streets, calling for a seven per cent pay rise.
Drivers working on bus routes operated by Keolis Downer started a 24-hour strike action, stopping about 150 bus routes from running until 5am on Tuesday.
Rail, Tram and Bus Union tram and bus division president Daniel Jaggers said the union is asking for a seven per cent pay increase over two years to keep up with the rising cost of living.
"This is about the cost of living and drivers being able to support their families in the current economic climate," he said.
"Members are concerned they will be pushed out of Newcastle due to cost of living increases and they are concerned they won't be able to afford to live in Newcastle and drive a bus."
Keolis Downer originally offered a 10.5 per cent pay increase over four years, but Mr Jaggers said this is not enough.
Bus driver Jonathan, who preferred not to use his last name, said he travels 40 minutes to get to the bus depot because he cannot afford to live near it.
"All we are asking for is a fair pay rise so that we can actually stay in the area and continue our jobs," he said.
"We worked through the pandemic, we work all hours, we have done our bit. Just give us something because we all have families to support."
From 2:01am on Tuesday bus drivers will also stop logging into their consoles indefinitely, stopping Opal cards from working and giving commuters free rides.
Keolis Downer said they will continue to negotiate with the union to reach an outcome.