Union leaders are asking Stagecoach bus drivers in the South West to decide whether they should strike over pay.
RMT say the company's pay offer is below inflation and so is effectively a pay cut in real terms.
The union will ballot 750 staff in Exeter, Torquay and Barnstaple before deciding whether to strike.
Stagecoach South West says it has worked closely with union representatives over several months to try to agree a pay deal.
Talks are taking place this lunchtime between trade unions and management over the future of Western Greyhound bus drivers who lost their jobs.
The Cornish bus company collapsed on Friday - and while some drivers have been taken on by new companies - others are still facing an uncertain future. A number of other bus companies have temporarily stepped in to cover the routes.
Philip Bialyk, the RMT South West Regional Organiser, says the staff members feel let down.
Replacement bus services following the collapse of Western Greyhound are expected to start on Monday - but there will be none this weekend.
Cornwall Council has been working with the bus industry to arrange alternative services. Four companies have agreed to provide the majority of services from Monday.
Some former Western Greyhound buses will be seen back on the road next week - but they will not be operated by Western Greyhound. More details at www.cornwall.gov.uk/buses.
Over 100 jobs are at risk in Cornwall as bus company Western Greyhound struggles to cope with its financial troubles.
In a letter to staff Managing Director Michael Bishop says he was in a "difficult situation" and his priority was to "look after staff" when he announced the firm had ceased trading.
Bus Driver, Christian Barkland, has been speaking to ITV.
The Cornish bus company Western Greyhound has ceased trading.
Michael Bishop Managing Director of Western Greyhound has been speaking to ITV news.
158 staff and 14 bus routes are affected by the announcement Western Greyhound has ceased trading.
ITV understands the management teams of Western Greyhound are in discussions with other bus operators to see if any jobs can be saved.
The company website has been suspended and bus drivers remain at the Summercourt bus depot in Cornwall to try and find out more about their future.
Bus company First Kernow will accept Western Greyhound tickets and passes on all its services after the company has reportedly ceased trading.
A major bus operator in Cornwall has gone out of business.
Drivers for Western Greyhound Ltd arrived for work this morning at the company depot in Summercourt to be told they were being made redundant.
One told ITV News that he had arrived at 5.30am to be given a notice of redundancy by management.
He said there had been no suggestion that the redundancies were imminent and he hadn't been paid for this month.
In the letter to staff seen by ITV News, Managing Director Michael Bishop said:
"Our focus is to pay all outstanding monies to each member of staff as soon as possible.
We are in immediate discussions with other operators to try and secure as many jobs as possible."
Mr Bishop took over the company in December last year.
He cited problems paying a large insurance bill as the reason for the closure.