School bus drivers and mechanics from Winnipeg School Division may be headed for a labour dispute.

On Monday, United Food and Commercial Workers Union Local 832, comprising 80 drivers and 5 mechanics, rejected First Canada's offer by 68 per cent.

First Canada holds the contract for bus services for the Winnipeg School Division.

The union said in a news release a number of long-standing members felt the proposed wage structure would have them earning less than in the previous agreement for the same work.

First Canada defends its compensation package, saying it is fair.

But spokesperson Timothy Stokes says the company is reviewing its options to avoid service disruptions.

The Winnipeg School Division won't comment while negotiations continue.  

The union said it has notified the company and the conciliation officer and hopes both sides can meet before the contract is set to expire on August 27, 2012.

The last time school bus drivers in Winnipeg went on strike was in Transcona Springfield School Division in 2000.