Sofia's City Hall will vote on Monday to allocate an additional BGN 7 M from its reserves to cover a potential BGN 200 wage hikes for the workers in the city's public transportation companies, mayor Boyko Borisov said.

The employees of two municipal companies are threatening to go on strike on Tuesday unless their demands for a salary increase.

They are demanding a raise of BGN 250 to monthly wages, better working conditions and tax breaks.

Although the City Hall is ready to cough up the money, the expenditure has to be approved by the cabinet as well.

Last week, the government controversially decided to repeal an ordinance that froze wages in companies owned by the state and local authorities if the companies failed to show profit at the end of the year.

A new ordinance that would impose looser restrictions is yet to be adopted.

"We did everything to ensure there would be no strike," Borissov said after meeting with KNSB trade union chief Zhelyazko Hristov early on Monday.

Hristov noted that the capital's bus and tram drivers remained ready to go on strike until they received official confirmation from the cabinet that the city hall will be allowed to deliver on its offer.

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