Keolis rejects report as union renews attack on Newcastle bus privatisation [VIDEO]

13 March 2026

READ REPORT (PDF): McKell – Private Gain, Public Pain. March 2026 2

newy.com.au – Newcastle’s privatised bus network has come under renewed scrutiny after a new report claimed commuters were receiving poorer services at a higher cost to taxpayers, while operator Keolis has rejected the findings and defended its record on safety, reliability and wages.

The report, Private Gain, Public Pain, launched by the McKell Institute and the Rail, Tram and Bus Union and commissioned by RTBU NSW, found Newcastle Transport ranked eighth out of nine operators across outer metropolitan NSW and said the value of the contract had grown from about $450 million to more than $600 million. It called for the network to be returned to public hands when the current contract expires in 2027.

RTBU NSW Tram and Bus Division president Peter Grech said the findings reflected years of complaints from commuters and drivers in Newcastle. “Privatisation was sold as a way to improve services. Instead, commuters are getting cancellations, delays and chaos,” Mr Grech said.

“Taxpayers are paying more while private operators chase profit.”

The report also raised concerns about driver safety and staffing pressures, with 67 per cent of drivers surveyed saying unrealistic timetables pushed them to drive unsafely and 74 per cent saying staff shortages were putting pressure on drivers and passengers.

Mr Grech said the Hunter needed a long-term plan for an integrated public transport network as the region continued to grow. “The Hunter is growing rapidly and public transport needs to grow with it. That requires long term strategic planning, not short term contracts designed around private profit,” he said.

He said pressure on drivers was putting the wider system at risk. “When drivers are forced to rush routes, skip breaks or deal with abuse from passengers, safety suffers. That’s the real cost of privatisation,” Mr Grech said.

In response, Keolis said claims of declining standards were wrong and failed to recognise the work of staff across the network. Keolis spokesperson Jay Zmijewski said the commentary about network performance “does not reflect reality and overlooks the efforts of the drivers, maintainers, controllers, customer service and management teams who keep this city moving every day”.

The company said safety and reliability had improved since it took over Newcastle’s integrated bus, light rail and ferry network in 2017. Keolis said its Lost Time Injury Frequency Rate had fallen from 40 to 5, road accidents per 100,000 kilometres had dropped from four to 2.5, punctuality was consistently above 95 per cent and current bus reliability remained around 98.24 per cent despite industrial action.

“These improvements reflect safer work environments and reliable services for our customers,” the spokesperson said. “Despite global workforce pressures since COVID19, Newcastle’s network continues to perform strongly against industry benchmarks.”

Keolis also said Newcastle bus drivers were now the highest paid in New South Wales, arguing wage growth since privatisation had outpaced the national Wage Price Index. Mr Zmijewski said the company had recently proposed a 12 per cent pay rise over three years without changes to conditions, but that offer had been declined by the union.

The operator said it had lodged an Intractable Bargaining application as enterprise bargaining negotiations remained stalled. “We’ve taken this step to support a constructive resolution and to ensure employees can benefit from the fair and practical outcomes we’ve been working toward,” Mr Zmijewski said.

Keolis also pointed to patronage growth following changes to the network early in the contract, saying adult bus patronage rose 11 per cent within a year and overall public transport use increased 23 per cent after the introduction of light rail. The company said it had also supported the growing region through event shuttles, Park and Ride services, an autonomous shuttle trial and planning for future electric bus operations.

Mr Zmijewski said debate about the future of public transport in Newcastle should be based on evidence. “Any discussion about how transport services are structured and funded should be grounded in evidence,” he said.

READ REPORT (PDF): McKell – Private Gain, Public Pain. March 2026 2