Workers at Dunedin Railways will strike later this month in a bid for better pay, they say.

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The Rail and Maritime Transport Union has issued a notice of strike action. It said a third of its members were paid less than a living wage of $19.80 per hour.

Dunedin Railways is owned by the Dunedin City Council. It operates scenic trips throughout Otago.

It employs about 50 staff, 32 of whom are union members who are frontline staff, such as train drivers.

The union's general secretary, Wayne Butson, said the workers wanted at least a 4 percent pay rise.

The 24-hour strike was planned for 25 November.