Seattle school bus drivers authorize strike as Zūm contract talks stall over retirement plan

Hundreds of Seattle school bus drivers have authorized a strike amid a contract dispute with Zūm Transportation, the drivers’ union confirmed.

The union, Teamsters Local 174, is accusing the company of refusing to agree to higher retirement contributions, with drivers prepared to walk off the job if an agreement is not reached in time.

No strike date has been announced.

“We are extremely close to an agreement, with only one issue remaining. Zūm’s offer meets the statutory contribution requirement for retirement benefits,” a Zūm spokesperson told KIRO Newsradio in a prepared statement. “The remaining disagreement is not about how much Zūm contributes toward drivers’ retirement benefits, but where those contributions go and who controls them.

“Under Zūm’s proposal, contributions go into accounts associated with individual employees, giving drivers greater flexibility, control and choice over their retirement benefits,” the statement continued. “The union now is seeking to redirect those contributions to the Western Conference of Teamsters Pension Plan. We believe our drivers should retain control over their retirement benefits. Zūm deeply values our drivers and remains committed to negotiating in good faith to reach an agreement that provides strong retirement benefits while preserving employee flexibility and choice.”

Zum says wages are settled, retirement structure is the only remaining issue

In a statement Tuesday, Zūm said the parties have reached a tentative agreement on pay increases. The company said the sole remaining dispute is not over how much is contributed to retirement, but where those contributions are directed.

Under Zūm’s current proposal, contributions go into a union-controlled savings plan where employees vest immediately. The Teamsters want those contributions moved to a multi-employer pension plan, which can require up to five years for employees to fully vest.

“We want our Seattle drivers to have the strongest retirement benefit possible, with greater ownership, flexibility and choice,” Vivek Garg, co-founder and COO of Zum, stated. “Our proposal provides a fully funded benefit tied to the individual employee, giving drivers greater control over their retirement savings.”

The two sides are scheduled to return to the bargaining table on Oct. 1.

Union says new state law should have settled the issue, accuses Zūm of picking a fight

Jamie Fleming, a spokesperson for Teamsters Local 174, said the dispute began after the passage of House Bill 1248. The law requires contracted school bus companies to give their drivers the same benefits as drivers employed directly by school districts, and the state would cover any increased costs.

The union argues the law should resolve the dispute and wants Zūm’s retirement contributions to go into the Western Conference of Teamsters Pension Plan. Zūm wants to put the money into drivers’ individual retirement accounts instead.

“These increased costs would be borne by the state through the funding for the bill, meaning there was little incentive on the part of the company to pick a fight with the union,” Fleming said. “And yet, they did anyway, refusing to allocate funds for workers’ retirement as the law requires. Their continued refusal to bargain in good faith now has the group of 300 drivers on the brink of a major strike action.”

Zūm said it has agreed to contribute the amount the union requested toward drivers’ retirement benefits, but it disputes that the law requires the money to go into the Teamsters plan. That leaves the two sides disagreeing over where and how the contributions are made, not how much Zūm will pay.

Teamsters Local 174 said Zūm is denying bus drivers “a fair retirement.”

Buses running as scheduled, SPS says contingency plan is in place

Zūm said its buses are currently operating as scheduled and that it is coordinating closely with Seattle Public Schools (SPS).

SPS said it does not expect service disruptions and has developed a contingency plan in case of a walkout, according to KIRO 7.

Bus drivers for Zūm previously voted to authorize a strike in 2023, one year after the transportation company agreed to a contract with SPS.

This threat of a strike comes just weeks after the Seattle Education Association (SEA), the union representing roughly 6,000 teachers and faculty, and SPS announced a tentative contract agreement late Sept. 1 — one day before the school year started — to avoid a strike.

SEA said teachers and other school employees were asking for better pay, smaller and more manageable class sizes, and support for special education services.

According to KIRO 7, the last major Seattle-area school bus driver strike occurred in 2018 between Teamsters Local 174-represented drivers and transportation company First Student.

Zūm Transportation joins SPS, splits contract with First Student

SPS awarded a new contract — valued at over $68 million for the next three years — to transportation company Zūm Services back in 2022. The legacy provider, First Student, split the contract, valued at $135.6 million over the same period.

First Student had been the district’s yellow bus transportation provider for more than a decade. In February 2022, SPS awarded the full contract to First Student. Zūm appealed the decision through a series of official protests, alleging the district mistakenly inflated its bid price.

Following that alleged mistake, SPS walked back its award of the full contract to First Student. The district then decided both companies would receive at least 40% of the overall commission.

First Student disputed Zūm’s claims, citing a “misunderstanding of procurement guidelines and the discretion afforded SPS.” SPS could not be reached for comment on either allegation.

With the split contract, Zūm currently operates approximately 280 bus routes.

This story was originally published on Sept. 24, 2026. It has been updated and republished since then.

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