UPDATE 8 p.m. : While preparing for a possible strike that would have shut down bus service for Billings School District 2, a federal mediator was called in and averted the shutdown.

"The two parties have agreed to bring a mediator in, so the buses will roll as usual on Monday," said SD2 Superintendent Jack Copps. The superintendent sent an automated telephone call to parents of 15,000 students this afternoon to let them know of the development.

Teamsters Union Local 190 represents 82 drivers who work for First Student Inc., a private company based in Cincinnati, Ohio, that has the contract to drive buses for SD2. The contract expired July 1, and Thursday night union members overwhelmingly gave their negotiators permission to call a strike if the talks didn't succeed.

Local 190 Secretary/Treasurer Joe Dwyer said the two sides appear to have significant disagreements over money, but that the talks will resume Tuesday with the help of a federal mediator from Helena.

First Student operates 82 bus routes for SD2. This contract dispute only affects SD2 routes in Billings, not other First Student contracts with surrounding areas, including Lockwood.

First Student media relations director Maureen Richmond said her company has offered its drivers a fair pay-and-benefits contract. Before agreeing to mediation, Richmond said First Student officials were preparing to bring in certified drivers from other states to operate some of the Billings school bus routes.

The company pays its Billings bus drivers between $10.82 and $13.89 per hour, according to Copps.

The Ohio company has been operating buses for SD2 since 1978. The company is the largest school bus operator in the world and transports students at more than 1,500 school districts across North America.

Lately, the company has been making local news.

In late September, First Student changed its bus routes in Lockwood and after the change, one 8-year-old student was dropped off three miles from home. He was safely found about 90 minutes later.

On Wednesday, Timothy Joseph Whalen of Billings was arrested in Washington state after he refused to surrender locally on charges of negligent vehicular assault and two other felony charges. He is accused of being drunk while driving a First Student bus and hitting a West High student in a crosswalk, breaking her leg on Sept. 25.

Contact Jan Falstad at jfalstad@billingsgazette.com or 657-1306.

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UPDATE 2 p.m. : Media relations director Maureen Richmond at First Student Inc. in Columbus, Ohio, has confirmed that negotiations between the company and Billings school bus drivers haven't succeeded yet and that the union could vote to strike at any time.

If there is a strike that shuts down bus service for Billings School District 2 and some outlying areas, Richmond said her company can bring in outside certified bus drivers to operate some of the school buses.

First Student has offered its drivers a fair pay-and-benefits contract, she said, and is continuing negotiations.

"We will work with the school district to communicate with parents, but we do advise parents to prepare alternative transportation for their children in the event of a strike," she said. "We sincerely apologize for the impact this uncer-tainty will have on area parents."

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INITIAL REPORT: Billings School District 2 Superintendent Jack Copps said he will decide this afternoon whether to trigger automated telephone calls to parents of 15,000 students warning them that the school buses may not run on Monday.

Drivers for First Student Inc., which contracts with SD2 to transport students, voted by a substantial margin Thursday night to authorize a strike because labor negotiations have snagged, Copps said.

Cincinnati, Ohio-based First Student has 96 drivers operating 82 bus routes for SD 2, and an additional 38 routes, including Lockwood, according to SD2.

Copps said he should know more about the status of the talks by 4 p.m.

"I understand there are some communications between the two parties. I don't know if they are formal negotiations or not," he said.

First Student has been the contractor for SD2 since 1978. The company is the largest school bus operator in the world and buses students at more than 1,500 school districts in North America.

The transportation contract being renegotiated expired July 1. Bus drivers currently earn between $10.82 and $13.89 per hour, according to the district.

Copps said he is analyzing how far apart the district and labor negotiators are on a new contract, adding that the differences appear to be substantial.

The auto-call technology at SD2 can notify most district parents in seven minutes.

If a strike occurs, Copps said, "We have to be sure to notify parents they need to be sure they don't leave their kids unattended at bus stops."

A First Student spokeswoman in Ohio had no immediate comment.

Contact Jan Falstad at jfalstad@billingsgazette.com or 657-1306.