The Otago Regional Council says it already pays direct staff a living wage, but has no plans to extend that to contractors.
The Dunedin City Council was this week announced as an accredited living wage employer, meaning all direct staff and contractors will be paid at least $21.15.
The Dunedin Tramways Union was initially pushing to get the same rates for bus drivers in Otago, but had since expanded this to all regional council contractors.
Secretary Philip Matthews said it wanted the ORC to include a living wage requirement in its contracts. The union was compiling petitions in support of the raised wages.
The majority of bus drivers were not paid a living wage and starting wages were slightly above $18, Mr Matthews said.
''Drivers end up get trying to get hours in, doing split shifts, not seeing their family.''
Regional council chief executive Sarah Gardner said council staff were all paid above the living wage, although it had not progressed to accreditation.
''We have not considered in detail what this would mean for our bus contracts and that would be an important factor in any future decision to look at accreditation.''