At the end of October, HKCTU's 800-member New First World Bus Company Staff Union threatened work-to-rule industrial action beginning November 1. New First World Bus Company, which took over China Motor Bus (CMB) in 1998, is the second largest bus operator in Hong Kong, transporting 530,000 passengers a day.

The 1,700 drivers at New First World Bus Company are represented by two unions. The other union, the Motor Transport Workers General Union, affiliated to the pro-Beijing Federation of Trade Unions (FTU), originally planned to join the strike, but on the eve of the industrial action withdrew its support. The FTU then held a press conference to declare its withdrawal from the strike action and gave management a written guarantee. This enabled the company to use drivers in the Motor Transport Workers General Union to weaken the effects of the planned industrial action by the New First World Bus Company Staff Union, and reduce pressure on management to meet drivers' demands. Despite this setback, the New First World Bus Company Staff Union pressed ahead with plans for strike action.

The dispute focused on the unfair dismissal of drivers (10 drivers were dismissed in September) and strict new disciplinary guidelines. Under these new rules more than 600 drivers had received warnings. At a meeting between the New First World Bus Company Staff Union and management on October 30, the management refused to discuss the dismissals and would not withdraw its new disciplinary regulations. However, the new regulations were introduced only when the union attempted to negotiate with management over a planned wage freeze for 2002. The New First World Bus Company Staff Union argued that the new guidelines and subsequent dismissals were designed to remove drivers with seniority who are paid higher wages and benefits and replace them with lower-paid contract workers.

With the New First World Bus Company Staff Union still committed to strike action, the management was forced into last minute negotiations on the night of October 31. The management agreed to the union's demands to relax the guidelines and to review charges of serious misconduct against drivers. The strike was then called off. Because of the success of the strike threat by HKCTU's New First World Bus Company Staff Union , many members of the FTU's Motor Transport Workers General Union quit the union in protest over the union's cooperation with management.