City of Newcastle and Keolis Downer unveiled the vehicle last week, which will run along the harbour and beaches for 12 months commencing later this year.

But the RTBU says an on-board operator instead of a driver is "not good enough".

"The safety of cyclists and the public depend on highly experienced drivers being able to anticipate risk and respond to changing conditions in a split second," the RTBU's Daniel Jaggers said.

"It's only legislation that is preventing Keolis Downer from removing operators from these shuttles entirely. This is just the latest in a long line of cuts aimed at removing drivers and services from our roads in the name of reducing operating costs."

Mr Jaggers said there was a fear driver positions would be made redundant if the autonomous technology advanced, a fear already in existence after recent changes to the local bus network.

Earlier this month, Keolis Downer reduced services on the 41, 43 and 48 routes to make way for smaller, on-demand services, which the union says are cheaper to run.

"The common theme in all these new changes is getting rid of drivers - and their salaries," Mr Jaggers said.

"An empty seat at the front of an autonomous bus cannot assist in an emergency, help elderly passengers, passengers with a disability, give directions or go off-route. But if the current legislation changes, that's the future we're looking at," he said.

"The RTBU does not oppose innovation and new technology which helps the public enjoy better transport. But we will not stand by while private companies replace humans with robots simply for the sake of making more profit.

The driverless vehicle trial, City of Newcastle initiative being run by Newcastle Transport operator Keolis Downer, involves an 11-seater vehicle with an on-board operator who can take control with a remote device.

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