Members of the Amalgamated Transit Union Local 1005 have voted to reject the latest contract offer from Met Council.
Union officials say members voted by 61 percent against the contract.
The union represents 2300 bus drivers, light rail and commuter rail workers and other Metro Transit employees.
The union last month overwhelmingly rejected the first Met Council contract offer, which included a wage freeze and higher health insurance charges and co-pays. Both sides resumed talks earlier this month and then turned to the Bureau of Mediation Services for help.
Union spokeswoman Michelle Sommers says she hopes the two sides can return to the bargaining table to reach agreement.
"When you are talking about changing a health care plan and making higher co-pays for both office visits and prescriptions and different things like that along with an increase on the premium co-pays and then a pay freeze," she said.
"Well, if you're going to take a pay freeze and then you have to pay more out of your pocket for health care, you've lost money."
The previous ATU contract expired July 31, and the two sides have been in talks since February.
The union represents 2,300 bus drivers, light rail and commuter rail workers and other Metro Transit employees.