Transit-union leaders have rejected a final offer from the company that operates buses in Phoenix-area cities.
That could set the stage for an indefinite halt in public transportation on Aug. 1.
The lead union negotiator for Amalgamated Transit Union Local 1433 says First Transit presented its "last, best and final" offer Friday afternoon.
The union rejected it and will set up a vote next week with union members and recommend a strike.
The union represents about 400 bus drivers. First Transit operates buses for the Valley Metro Regional Public Transportation Authority.
A strike could stop bus service on 40 routes in Tempe, Mesa, Chandler and Gilbert plus some routes in Scottsdale and Ahwatukee Foothills, and express service from those communities to downtown Phoenix and Scottsdale.