Fifty bus drivers are being offered a £25,000 lump sum to give up their old terms and conditions.

The drivers are being invited to accept the discretionary lump sum in exchange for accepting the new employment terms and conditions, or resigning.

It’s part of a move under the government’s SAVE programme to cut the taxpayer-funded subsidy to public transport by £1m over three years.

But it will also be seen as finally bringing to an end a dispute over terms and conditions dating back to 2012.

There are 50 drivers at Bus Vannin who are on old terms and conditions.

The other 57 are on the new terms which were imposed in October 2012 by the then Department of Community, Culture and Leisure.

Under the new terms, all permanently employed drivers are paid the same flat hourly rate, irrespective of hours worked (some are part time). This does not include casual staff.

A consultants’ report for SAVE revealed the flat hourly rate for drivers on new terms was set at £11.73 from April 2017 but drivers on old terms were paid £13.45 per hour, rising to £19.29 at ’enhanced rate’ for weekend and Bank Holiday work and certain overtime.

The offer of a lump sum was made by the Department of Infrastructure and is open for three months, ending on September 10.

If drivers choose to accept the offer, a conciliated settlement agreement will be signed through the Manx Industrial Relations Service.

If they choose to continue working for Bus Vannin but then leave through retirement, resignation or dismissal within 12 months they will be required to repay a proportion of the lump sum at a rate of £2,083 for every month not worked less 12 months.

Unite members of Bus Vannin took part in a series of strikes over changes to the terms and conditions, beginning in December 2012 and culminating in a 12-day strike during TT 2013.

Bus drivers subsequently began working to new contracts which involved longer shifts, a 10% pay cut and the loss of paid lunch breaks which were aimed at saving £300,000 a year.

Two bus drivers took the government to an employment tribunal in a test case but their claim of unfair dismissal was rejected in 2014.

The tribunal heard that 91 Bus Vannin drivers had at that time accepted the contract changes while reserving their positions.

Unite still has a valid mandate for industrial action at Bus Vannin which has been in place for more than three years since 2016 over ’unfair and discriminatory’ management practices in relation to disciplinary procedures.

The strike ballot is being rolled forward regularly by one union representative notifying the department on a monthly basis that they are taking part in a work to rule.

This month has been the 40th time this has happened.

In a report compiled for the SAVE programme, consultants estimated the cost of making redundant the drivers on old terms and conditions to be between £1.5m and £2.2m, depending on length of service.

For the latest on this story, see the Manx Independent. We talk to the union.