A further 24-hour bus strike is on the cards for Thursday sparking disruption for thousands of passengers across Devon and Cornwall.
The RMT transport union is locked in a dispute with First Devon and Cornwall over pay and contracts for new employees.
Tensions have been rumbling on over the past few months.
Last month a 24-hour walk-out by bus drivers and engineers went ahead, while a second strike was averted at the eleventh hour.
Yesterday bus chiefs said they had been informed by the union a strike was in the pipeline for Thursday.
The end of the row had looked in sight on Friday November 2 when the company offered staff a 2% pay increase from December 2 and a further 2.3% increase from April next year.
However, union chiefs have rejected the offer after consulting their members.
The conciliatory service ACAS is now likely to be drafted in, in an attempt to settle the matter.
Chris Bainbridge, Service Delivery director for the company said: "We are incredibly disappointed and frustrated."