Bus drivers in Edinburgh are set to go on strike next week on the first day of the Fringe festival .
Members of the Unite union rejected a last-minute deal in a lengthy dispute over pay.
Lothian Buses may not run at all, or will operate a reduced service from Friday, August 2.
It comes after the union, which represents drivers and engineers, recommended their 1,700 members accept the new deal following talks.
The proposal from the firm would have seen a 2.7 per cent pay rise and measures put in place to combat concerns over bullying.
Lothian Buses tweeted: "We are disappointed to inform you that union members have voted for continuous strike action from 2nd August, despite a second deal being agreed with Unite for a significant package including an increase in pay and other benefits.
"This means buses may not run or operate on a significantly-reduced basis.
"Our customers remain our absolute priority and we are doing everything we can to achieve a resolution.
"We will minimise disruption where possible."
Unite regional industrial officer, Lyn Turner, said: "Unite’s 1700 strong Lothian Buses membership has democratically voted to reject the latest offer from management.
"There has been progress made in our negotiations through Acas but yesterday's vote is testimony to the fact that this was never about pay.
"The depth of feeling from our membership about the toxic management culture speaks for itself.
"Our members have considered the latest offer too little and too late.
"Unite remains committed to finding a resolution to the dispute and our door remains open for talks but as things stand the action will go ahead on the 2 August."
