Labor problems loom at Greyhound

NEW YORK (CNNMoney.com) -- Greyhound Bus Lines said Monday that one of its major unions had voted down a proposed labor contract, setting the stage for disruption at the nation's largest bus operator.

The current contract with the 3,300 drivers and mechanics of Amalgamated Transit Union (ATU) National Local 1700 expires on April 15.

Greyhound, a unit of Laidlaw International (down $0.02 to $34.58, Charts), told CNNMoney it will look at its options in the situation.

"This was an offer put out by company without union recommendation," said Kim Plaskett, a spokeswoman for Greyhound. "We're disappointed in outcome because we believe we provided a fair offer."

The union has not voted for a strike authorization, said Plaskett.

Officials for ATU were not available because of the Passover holiday.

Laidlaw is set to be acquired by the UK's largest bus company, FirstGroup, for $2.8 billion, after regulators looking at antitrust issues and other factors approve the deal.

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