A threatened shutdown of public transport services next week has been averted after progress was made yesterday in talks between unions and the Department of Transport.
The National Bus and Rail Union is now expected to call off a planned campaign of industrial action, which was due to begin with a one-day strike next Tuesday.
For the first time since the Minister for Transport, Mr Brennan, announced reform plans in November 2002, an agreement on the future organisation of public transport looks likely.
In discussions at the Labour Relations Commission yesterday, the two sides agreed to begin intensive talks, with a view to completing a deal by September 17th.
Union leaders believe Mr Brennan has significantly moved from the position he had held for the past 20 months.
His reforms had included a plan to have 25 per cent of the Dublin bus market placed under the control of private operators by the beginning of this year.
He has now conceded that whatever new arrangements are agreed, Dublin Bus must not be diminished in size and must be allowed to grow.
Unions, however, are also committed to discussing the introduction of increased competition sought by Mr Brennan.
In a document presented to the parties yesterday, the chairman of the talks, Mr Kevin Foley, said he believed the objectives of both sides - protecting Dublin Bus while achieving a "genuine marketing opening" - could be met.
He also proposed parallel discussions on the "joint objective" of the sides to ensure standards of employment are maintained under any new arrangements.
Mr Foley suggested that the parties should bring the talks, which will also deal with future arrangements for Bus Éireann, to finality by the September deadline.
A Department of Transport spokeswoman said officials had attended the talks and were pleased with the progress that had been made.
They had agreed to proceed with the discussions on the basis outlined by Mr Foley and were confident of a successful outcome.
Mr Liam Tobin, the NBRU general secretary, said he would be reporting on the "positive tone" of yesterday's discussions to the union's committees and representatives.
A decision by the union to call off the threatened strikes is expected in the next day or two.
One of the first tasks of the parties in the talks, which resume on Thursday, will be to agree a way of measuring both the size of Dublin Bus and the capital's bus market.
Two sub groups are to be set up to deal in parallel with the issues of bus markets and future employment standards.
Unions have sought the establishment of a joint industrial council for the sector, which would set down minimum legal pay rates and other terms and conditions.
A strike by the NBRU, which would have had the support on the ground SIPTU members, would have caused a shutdown of all Bus Éireann, Iarnród Éireann and Dublin Bus services.