Dunedin Railways is wholly owned by Dunedin City Council. Photo: ODT

Members of the Rail and Maritime Transport Union have issued notice of strike action at Dunedin Railways, formerly known as Taieri Gorge Railway.

General secretary Wayne Butson said members had been in pay talks with Dunedin Railways since July this year and today advised the first full 24-hour withdrawal of labour would take part on November 25.

"The sticking point is over a fair and reasonable pay increase for our members, a third of whom are paid below the living wage of $19.80 per hour,” Mr Butson said.

The union was claiming a 4% increase in the first year of a two-year deal, with a further 2% in the second year.

“In recent years our members have foregone increases or agreed to pay increases that have barely kept pace with inflation because the post-earthquake downturn in tourism in this region hit Dunedin Railways hard.” Mr Butson said.

“Now passenger numbers and revenue are increasing, it’s time the employer did the right thing by the workers. The difference between us isn’t large, amounting to only one percentage point in the first year for most members,” he said.

“Dunedin Railways is wholly owned by Dunedin City Council and we are sure that councillors agree it’s a great little railway that brings a good deal of business to their city.

“We don’t think it’s right that such a successful publicly owned enterprise should pay below the living wage to so many of its employees,’ he said.

The union had a mandate to issue further strike notices, Mr Butson said.

"But in the meantime we have a couple of weeks to get around the table with management and thrash out a deal.”