The National Bus and Railworkers' Union has given a cautious welcome to the proposals from Séamus Brennan regarding talks on the future of CIÉ.
The NBRU General Secretary Liam Tobin said his members would be studying the letter closely, but said it appeared to be a big step forward.
The Department of Transport is hoping its proposals will avert industrial action at the State transport company over plans to privatise bus routes and dissolve the CIÉ holding company.
A two-page letter from department secretary Julie O'Neill confirms the minister's offer of talks between the department and unions, to be chaired by a third party.
The letter sets out three key policy objectives regarding provisions of a well functioning public transport system which would enhance competitiveness at reasonable cost to the taxpayer.
The letter states that the minister is still firmly of the view that franchising is the most effective means of achieving genuine market openings to new entrants.
However, in an apparently conciliatory move, he remains open to additional suggestions provided they are directed at achieving that objective. The letter also displays some flexibility on the pace of introducing competition.
The minister believes his objectives can be achieved in the context of market expansion and negotiations without undermining the terms and conditions of employment of existing CIÉ employees.
The letter says it is hoped that these proposals will provide a basis for dialogue.
The reaction of SIPTU to the letter is not yet known.
The SIPTU strike committees of the three CIÉ companies were already scheduled to meet tomorrow at midday to decide whether to proceed with a mandate for strike action.