Eastern Ontario school bus authority warns of possible shortages this fall

The school bus authority that serves school boards in eastern Ontario outside of Ottawa is warning of possible transportation shortages this fall.

Student Transportation of Eastern Ontario (STEO) said in a news release that its latest series of offers to school bus companies was rejected last week and there could be disruptions to school buses when the new school year starts.

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"STEO has made every effort with the existing school bus companies to secure student transportation service for the upcoming school year, while recognizing the challenges companies face in recruiting and retaining drivers," the non-profit agency said.

"Unfortunately, STEO’s latest in a series of offers was rejected by the school bus companies on August 19, 2023, which means that there is a potential for disruption of transportation services at the start of the school year."

STEO organizes school buses for the Upper Canada District School Board (UCDSB) and the Catholic District School Board of Eastern Ontario (CDSBEO). About 30,000 students use the school buses organized by STEO.

School bus driver recruitment and retention have been issues facing school boards across the region since the COVID-19 pandemic began.

STEO says it and school bus companies remain "far apart" with respect to overall compensation.

"The most recent STEO proposal was a multi-year offer that provided annual increases above the rate of inflation, included all driver recruitment and retention bonuses being funded by the provincial government, and continued the practice of full compensation for rising fuel costs," it said.

"The school bus companies rejected this offer and responded with a counteroffer that far exceeds the funding available to school boards for student transportation services. This response demonstrates a significant gap between the parties that the school boards cannot bridge without removing funds from the classroom."

Bus operators call for third-party assistance

Bus operators say the STEO's offer is below the costs bus operators are bearing.

"Stable funding is the primary issue as operators face skyrocketing costs for buses (up 40 per cent), tires (up 50 per cent), and labour costs (up 30 per cent) since rates were last set in the 2017/18 school year," said Frank Healey, president of Healy Transportation and spokesperson for Eastern Ontario Bus Operators (EOBO). "In contrast, STEO annual rate increases since then have been less than 3 per cent." 

Speaking to CTVNewsOttawa.ca by phone, Healey said a bus that cost around $115,000 in 2019 is going for $141,000 this year, and could only be more expensive next fall, for example. He also said school bus drivers have been underpaid for a long time, and trying to improve wages is key to attracting and retaining drivers.

The EOBO are asking for an independent third party process to resolve the impasse.

"We've presented reasonable offers to STEO and they’re digging-in their heels right before school begins. Let's keep talking and work together in the interest of the students and their parents," Healey said.

Healey said the EOBO were confident they were working toward a deal, but agreeing to mediation could keep buses on the roads while the two sides work toward a deal.

The new school year starts Sept. 5 in both the UCDSB and the CDSBEO.

In a statement, the UCDSB Chair of the Board John McAllister said the impasse is unfair to families, school staff and students.

"With approximately 70 per cent of our students needing transportation, no buses means many families will struggle to get their children to school," the statement said. "This is unfair to families, staff and most of all – our students. The bus operators have outlined demands to STEO that far exceed the available funding provided to school boards by the Ministry of Education. We understand that STEO and the bus companies are still far apart, but we hope the bus companies will commit to showing up on the first day of school for our students, just like we are."

The CDSBEO said in a statement, "We hope for a positive resolution as soon as possible that will result in regular transportation for the upcoming school year for our students and their families. CDSBEO will continue to monitor the situation closely."