Disruption to bus services in Wellington may continue for the rest of the week.
Members of the Wellington Tramways Union walked off the job at 7.30am until 8:30am on Wednesday.
However, the bus company, Go Wellington, has given notice it will lock out the drivers and cancel all services from 5:30am on Thursday.
On Tuesday, the union rejected an offer of a pay increase of 7% and demand between 8% - 12% instead.
It claims that pay for its 311 members was, in effect, cut last year when the company limited working hours.
The bus company says health and safety concerns were largely behind the cut in hours.
Chief executive Bruce Emson says the usual morning patronage is 50,000. He says the strike is affecting services in and out of the railway station and the Karori interchange; 23 school buses are also affected.
Company offer
Mr Emson told Morning Report the situation follows three months of negotiations, and that their best pay offer is on the table.
He said that includes a 7% pay increase for this year, a 4.3% increase for next year as well as a one-off payment of $250 to each driver.
Mr Emson said the union has indicated similar strike action is planned for Thursday afternoon's rush-hour period.
