Tram and Bus Division President of the Rail, Tram and Bus Union (RTBU) NSW, Daniel Jaggers, said recent inflation figures, combined with Kelios Downer's "refusal to provide workers with fair wages", have left drivers no choice but to step up their campaign.

"Drivers are being forced to take protected industrial action to pressure their employer to pay a wage which allows them to make ends meet and live where they work," Mr Jaggers said.

"As the key inflation figures indicate, prices for goods and services increased 5.1 percent over the past year while wages have remained stagnant."

While the focus is on Keolis Downer, Mr Jaggers said the state government "is not blameless".

"When they privatised our buses they effectively wiped their hands of the responsibility to deliver a quality service, yet ultimately they can deliver a fair wage rise by increasing their contracts with the private operator," he said.

"Premier, we can't wait for a decent living wage. Already our drivers are struggling to make ends meet while rising housing costs are pushing them further out of Newcastle.

"We're not asking for much - just a wage which helps drivers keep up with the cost of living.

A Keolis Downer spokesperson told the Newcastle Herald the company "continue to approach the negotiations in good faith, and remain committed to reaching a fair, timely and reasonable outcome for our people".

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