BUS company Stagecoach will tomorrow increase wages by as much as 20 per cent in Swindon in a bid to lure new drivers to solve its staffing crisis.

The move could cost the firm £140,000 a year, yet directors insist they don't intend to increase fares.

Competitor Thamesdown Trans-port says it is likely to follow suit and has warned that customers may have to bear the brunt.

The current starting salary at Stagecoach varies between £5.45 and £5.95 an hour.

From tomorrow, new drivers will be paid £6.30 an hour and the maximum wage will be £6.50. Trainees will also be able to achieve the top wage after just six months, whereas previously it has taken 10 years.

Commercial director for Stage-coach Swindon and District, Phil Stockley, said the extent of the hike demonstrated the firm's determination to improve its service.

"We have been mindful for some time that drivers' pay has been low in Swindon, which has meant it has been difficult to maintain staff and

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the service has suffered," he said.

"We've had some intense discussions but eventually decided a few pence here or there wasn't going to have enough impact.

"We have now advertised vacancies at these new rates and hope to recruit new drivers quickly."

Stagecoach was forced to introduce an emergency timetable on Monday after admitting it was 20 drivers short from a full payroll of 80.

The move followed countless complaints from customers about the unreliable service and Mr Stockley today promised measures would be introduced to improve things for good.

He refused to reveal exactly how much the changes would cost the firm.

But if 80 drivers are paid at least £6.30 an hour for an average of 40 hours a week, the cost exceeds £1 million a year. That is more than £140,000 more than at £5.45 an hour.

Mr Stockley said: "The new wages obviously mean extra costs which have to be met either by charging more or creating extra business.

"We hope by running a better, reliable service, we will attract more customers and won't need to increase fares. It is a gamble, but we believe it is achievable."

Thamesdown chief executive John Owen was surprised at the scale of the pay rise. He admitted he would be forced to offer his staff a competitive deal, or risk losing them, and the fares may well increase as a result.

"I would have thought it must be difficult for any bus company which increases wages by up to 20 per cent to not at least look at raising fares," he said.

"It is our fundamental objective that our drivers' earning power should be at least as good as other bus companies locally.

"We are currently in negotiations on next year's pay award and intend to present a new agreement to the board soon.

"We will have to find a way of affording that and we can't guarantee that won't affect fares."