Minister for Transport Paschal Donohoe has defended controversial plans to put out to tender 10 per cent of bus routes currently operated by Dublin Bus and Bus Éireann, saying it would offer greater choice to passengers.

Unions have warned if the plan goes ahead, it will inevitably lead to industrial unrest at the State-owned transport companies.

Talks resumed today at the Labour Relations Commission between bus workers' unions and the National Transport Authority (NTA) over the plans which unions fear could lead to the privatisation of routes which up to now have been run by Dublin Bus and Bus Éireann and result in a deterioration of their members' terms and conditions.

However, speaking at a Cricket Ireland event in Trinity College Dublin today the Minister said: "I believe that the plan that we have in place to ensure that 10 per cent of bus routes are open for tender by 2016 is a very important objective to offer more choice to bus users all over the country."

“I also understand, and I’ve said this on a number of occasions, that it is very important to consult with all of the stakeholders that would be involved in this and because of this I believe the Labour Relations Commission process is an important one and it’s one that I know is underway at the moment.”

An earlier round of talks at the Labour Relations Commission in July averted a planned protest march by members of the National Bus and Rail Union (NBRU) which could have disrupted bus services in Dublin for up to 90 minutes.

Trade union Siptu said the plan to put the routes out to tender was flawed and represented "a bad deal for the taxpayer, for the travelling public and also for the workers in both CIE companies".

The NBRU argued the tendering process was “the beginning of a race to the bottom with regard to workers pay and conditions”.

NBRU general secretary Dermot O’Leary said unions were vehemently opposed to the proposal.

He said the plan could trigger “the kind of situation seen recently in the Greyhound waste dispute where workers faced a pay cut of 35 per cent.

Mr O’Leary said unions wanted the NTA to understand that its decision was based on a “flawed ideology”, which was not going to work for customers, staff, Bus Éireann or Dublin Bus.

He said the companies would be left with a residue of staff if the routes went to the private sector, which could cost them millions.

Siptu divisional organiser Owen Reidy noted that both state companies had cut their costs significantly and had met their targets.

He said fragmenting an integrated public transport system would not be good for the customer, the taxpayer or the workers.

NTA chief executive Gerry Murphy said that the two State companies would be allowed to bid for the routes which were being put out to tender, and that the market would determine the right price for services.

Mr Donohoe, told the NBRU in advance of the LRC meeting in July that “Dublin Bus and Bus Éireann were not being privatised and will not be over the lifetime of this Government”.

He said: “The NTA considered it to be in the public interest to leave Dublin Bus and Bus Éireann with a scale of operation which remains efficient for each company’s resources and overheads. The NTA has determined that tendering about 10 per cent of the market presents little, if any, risk to Dublin Bus or Bus Éireann’s overall operations which giving the opportunity to test market pricing, offer opportunities to improve efficiency and customer service, as well as the possibility, subject to the outcome of the competition, of bringing new operators into the market, and enabling benchmarking.”

He also said that if the two semi-state bus companies were not successful in the competitive process, staff would be protected under the transfer of undertakings regulations.

Under the current plans, orbital routes in Dublin rather than city centre services – such as those between Blackrock and Rialto, and Chapelizod and the Square shopping centre in Tallaght – will be put out to tender.

Bus Éireann routes earmarked for tender include commuter services from Dublin to Tullamore, Portlaoise and Kildare, as well as a number of routes in Waterford city.

Dublin Bus and Bus Éireann will be able to compete for the tenders when the competition begins.