The City of Fredericton has rejected a counter wage and benefit proposal from the transit union. 

Mayor Brad Woodside said in a statement the Canadian Union of Public Employees 1783 was notified of the city's decision on Tuesday. Bus drivers and other transit employees have been in a strike position since Jan. 10. Both sides ended mediation Jan. 12. 

"The current offer made by the City of Fredericton to the transit union is fair and reasonable, especially considering that it is above current and projected inflation, and is the same one as already accepted by our Outside Workers (CUPE 508) and Inside Workers (CUPE 1709)," said Woodside. 

The city said a permanent, full-time transit operator now receives an annual salary of $45,843, and a separate benefit allowance of $4,550 annually. The wage and benefit allowance increase would be applied to those numbers.

"We remain hopeful there will be no service interruption for our transit customers. Both parties remain in a position to take job action with 24-hours notice," Woodside said in Wednesday's statement.