About 8,500 school bus drivers and matrons who recently walked off the job are facing a significant pay cut.

The union says bus operators will cut salaries by 7.5 percent.

They will also eliminate pay for Christmas and Easter breaks, starting with next week's break.

Workers will also reportedly have to pay more for their health insurance.

The bus companies say the new cost saving measures are necessary financially.

This comes weeks after a month-long strike by Amalgamated Transit Union Local 1181 came to an end.

Workers demanded but failed to get employee protections included in new school bus contracts the city put out to bid.

The city said it could not legally offer those protections.