The withdrawal of security staff by Irish Ferries from the Isle of Inishmore and the Ulysses ferries has been welcomed by the Minister for Enterprise, Trade and Employment Micheál Martin.
Addressing a special Dail debate on the impasse at the company, the Minster said the dispute has the "potential to impact on the whole industrial relations environment".
Mr Martin said he was appalled at the approach taken by Irish Ferries in recent weeks to the conduct of industrial relations.
He told deputies that the Labour Relations Commission was currently working with both parties in order to establish a firm basis on which an agenda could be agreed to allow the parties to engage in intensive negotiations over the next week.
Mr Martin said the Minister for Communications, Marine and Natural Resources Noel Dempsey was continuing to consider an application from the company to remove the vessels from the Irish register and be transferred to the Cypriot register.
He said while further advice was being sought by the Attorney General, the legal position was clear. "Once Irish Ferries satisfies the Minister that its proposed re-flagging in Cyprus is on foot of its right of establishment [under European law] then the State cannot prevent the re-flagging."
Fine Gael deputy Phil Hogan said the Government should consult with its EU colleagues to outlaw the practice of re-flagging.
Earlier today in a letter to staff, Irish Ferries chief executive Eamonn Rothwell said the company had taken the decision to unilaterally remove security personnel from the ships in anticipation of a reciprocal goodwill gesture from Siptu officers.
The company sent security personnel on board the Isle of Inishmoreat Pembroke and the Ulyssesat Holyhead on Thursday.
Agency staff from eastern Europe later arrived on both vessels for what the company called "familiarisation programmes" before they replaced staff who had accepted voluntary redundancy.
But the company removed the security personnel at lunchtime today and are waiting for a response from the Sitpu members who barricaded themselves into the control room of the ships.
According to the union, the removal of the security personnel from the ships is a "step in the right direction" but the company is still not allowing direct communication between the ships' officers and union representation.
In a statement issued this afternoon Siptu called on the company "to remove the security presence and replacement crews entirely from the ship and the surrounding compound, so as to allow crew members access to trade union representation".
Siptu Marine Branch organiser Paul Smyth also criticised the Government for not visiting crew members aboard the ships.
"It is absolutely appalling that no Government official has taken any action so far in relation to the Irish Ferries dispute and has failed to send a single representative to visit the crew members aboard the ships," said Mr Smyth.
The company's three Irish Sea vessels remain tied up in ports in Ireland and Wales today as the stand-off contiues. The MV Normandy, which was allowed to dock at Dublin port on Sunday night after Siptu workers refused to allow the vessel into the port at Rosslare, sailed back to France yesterday without any passengers.
Earlier today union leaders called for a national day of protest over the dispute at Irish Ferries.
The executive council of the Irish Congress of Trade Unions (Ictu) backed a motion by Siptu to hold the protest, which is designed to highlight the issues arising from the dispute, on Friday December 9th.
It is unclear at this stage how many union members across the State will take part in demonstrations.
Speaking after the Executive Council meeting, Congress General Secretary David Begg said: "Congress does not accept government claims that they are powerless to do anything about this issue. In the past, we have seen the Dáil recalled and legislation passed to deal with matters deemed to be of national concern."
