Both sides in the bus drivers dispute are considering their next step after drivers overwhelmingly rejected a deal aimed at resolving the issue of the loss of paid lunch breaks.

Under the proposal, drivers would also see sick pay reduced to come into line with a 37 hour week and maximum driving time would have increased from 3 hours 45 minutes to 4 hours and 10 minutes.

In a statement released at lunchtime the Department of Community Culture and Leisure says they have worked hard with the union to minimise the personal impact on the drivers and they will now discuss how best to move forward.

Minister Graham Cregeen says the the Department is operating a vital public service in a challenging commercial environment with reduced budgets and rising fuel costs but they have to stay within their budget and deliver value to the taxpayer.

Eric Holmes from the union UNITE, who advised drivers to accept the latest deal, says they're now in "virgin territory" . and he's been in contact with Manx Industrial Relations Officer Julie Bradley to ensure that both sides stay within the law