A work stoppage by bus and rail workers next Monday is likely to be cancelled after the Minister for Transport, Mr Brennan, called a meeting with trade unions in CIÉ.

The National Bus and Railworkers' Union (NBRU) and SIPTU will meet today to consider joining talks with Mr Brennan on January 30th. Both unions staged a stoppage last week, disrupting thousands of passengers, because of their opposition to Mr Brennan's plans to abolish CIÉ and open the Dublin bus market to competition.

A decision to enter talks on Thursday week would signal the cancellation of next Monday's protest and the start of an engagement on the substantive issues.

But there was no sign of agreement. While the NBRU general secretary, Mr Liam Tobin, said Mr Brennan's letter was a "welcome development", he said it was apparent that "serious differences of approach" still existed.

Mr Brennan is understood to have confirmed to the unions that he would establish an implementation committee. He did not indicate that the unions would be represented on that committee but is understood to have promised "appropriate" consultative arrangements.

Senior observers in the CIÉ companies and in the trade union movement believe that a break-up of the ailing State transport group could be achieved by establishing Dublin Bus, Bus Éireann and Iarnród Éireann as independent companies. However, the unions have strongly opposed moves to open a quarter of the bus market in Dublin to competition this year and are highly sceptical of the feasibility of the plan.

Mr Tobin said: "Our main concern is to protect the interests of the travelling public and our members. We also want to ensure that the Government does not repeat the sort of mistakes that were made by the Thatcher government when it privatised British public transport."

Mr Brennan is understood to state that change is essential but said reform could be achieved in a spirit of partnership and in a manner that reflected the interest of public transport workers. He is also understood to state in his letter that he wants, where appropriate, to continue to work through and with the Public Transport Partnership Forum.

The forum developed union-backed proposals last year to reform public transport, which the unions claim the Government has ignored. However, Mr Brennan's letter is understood to claim that there is a very strong measure of agreement between the unions and the Government on the need to restructure CIÉ.

Pointing out that the forum suggested establishing Dublin Bus and Iarnród Éireann as independent companies, he is understood to state that there were no plans to privatise any of the CIÉ companies.

He is understood to state that the Programme for Government contained a commitment to replace the 1932 Transport Act, which underpins CIÉ's monopoly.

Ahead of talks with the unions, Mr Brennan is expected to meet the boards of Bus Éireann and Bus Átha Cliath next week.