Bus owners have three days to decide their future and that of their employees after the government gave them a take-it-or-leave-it offer.
They can either accept the government's monetary offer and a 10-year guaranteed job with a new service provider, or refuse it and be out of job, Transport Minister Austin Gatt said yesterday.
But according to Victor Spiteri, president of the Public Transport Association (PTA), the majority of bus owners would not be accepting the government's offer.
In a six-page letter sent to all 323 bus owners and licence holders, Dr Gatt explained that the government has been negotiating a compensation package for them through talks with the association, but these were inconclusive.
Against the association's advice, Dr Gatt wrote to the individual owners as time was pressing and "bus drivers deserved to know what was being discussed on their future".
Dr Gatt said although talks with the association were "very cordial", no agreement had been reached on the compensation.
Dr Gatt said the government was offering €98,000 compensation to owners of old buses and €118,000 for those who owned low-floor buses. This compensation covers the vehicle and the operator's licence.
However, Dr Gatt said the association was asking for €177,000 for the old buses and €200,000 for the low-floor buses.
The minister said the government had asked to see the owners' income tax returns when it was calculating the compensation but was told this was impossible. So the government looked up deeds of transfer of licences over the past years and based its calculations on that.
Dr Gatt said the government was promising all bus owners and their employees a 10-year contract with the new public transport operators under their current conditions, and a wage of at least €9,486 a year.
In his letter, Dr Gatt said every licence holder must take a decision by Wednesday.
If the offer was refused, the government would still pay them compensation but this would exclude the value of the bus and the 10-year guaranteed job.
At present there are 508 buses. Only 131 of these reach the Euro III standard and can be used by the new operator.
The rest will be scrapped, except for those classified as vintage, which will be exhibited in a transport museum.
When contacted, Mr Spiteri said from the initial feedback he received yesterday, the majority of bus owners would not accept the government's offer.
"Most are self-employed, so the 10-year job guarantee is not something they are ecstatic about... We do not feel the amount of compensation is enough. We were promised a 10-year contract and our demands reflect the loss of business in these 10 years," he said.
Mr Spiteri said he was surprised how the government had suddenly closed negotiations with the association.
On the deadline, he said this was "self-imposed".