THE threat of industrial action will delay next month's launch of the new York Metro bus system, the Evening Press can reveal today.

First York has admitted that its new routes, new buses and a slicker service must all be put on hold indefinitely while angry drivers hammer out a deal with them.

An improved third offer last night was rejected out of hand by drivers, who voted 150-12 to reject the deal which bus bosses claimed "offered everything they wanted".

"The situation is now horrendous," a driver, who asked not to be named to protect his job, told the Evening Press.

"The morale is an all-time low. We just want to drive these buses but the conditions and pay we are being offered are just not acceptable.

"I can see this going to a strike because people are just simply not happy. Drivers are now leaving things have got so bad."

He added that that differences in pay between First York staff and a lack of facilities at the new changeover point on Rougier Street were the main sticking points.

FirstYork Managing Director Brian Asquith has now been forced to indefinitely postpone the much-hyped Metro launch, originally due for mid-August, until "the workforce is behind us".

"This is very disappointing indeed," he told the Evening Press.

"We came up with a deal which we were confident matched the demands, but it has been heavily rejected.

"It is becoming a very worrying situation, so we have now had to postpone the launch of the buses, which is a big blow.

"We will now arrange another meeting and we are keen to work with the drivers to come up with a solution."

The Transport and General Workers Union, which represents the drivers, were unavailable for comment.

City of York Council is spending £250,000 improving bus routes by lowering kerbs and installing new bus priority systems to facilitate the new routes.

Dave Pearson, principal transport planner at the council, said: "A delay is disappointing and we hope First York can resolve this as soon as possible."

Updated: 16:49 Friday, July 06, 2001