Fianna Fáil said it will not support compulsory redundancies at Bus Éireann.

The party's transport spokesman Robert Troy said the party would block plans to lay off workers at the State-owned company.

Bus Éireann management wants to separate its loss-making Expressway service from the rest of the company and introduce lower terms and conditions for staff.

Outsourcing, redundancies and pay cuts are being considered by the company, which is losing €500,000 a month. Unions are balloting for industrial action.

Mr Troy said his party would not support any measure that diminish the public transport service. He said: “We are not in favour of any compulsory redundancies. Bus Éireann management must recognise that some of these routes may never be profitable given their location, particularly those which serve rural communities.

‘Vital service’

“However a case should be made to include these routes in the Public Service Obligation contract to ensure these areas do not lose what is a very vital public transport service.”

A dispute has emerged between the Minister for Transport Shane Ross and the company. Mr Ross said he was unaware of the restructuring plan while Bus Éireann has said he was given a detailed plan at a meeting on September 11th.

The Minister is coming under increasing pressure to outline his knowledge of the measures and whether he supports the proposals. It is understood he was given a brief outline on the scale of the problem but little detail about proposals.

Finances critical

Mr Troy said it was incomprehensible that the proposals were so advanced without the Minister’s knowledge. He said: “It is about time the Minister outlined his vision for the public transport network.”

Mr Ross's Independent Alliance colleague, Minister of State at the Department of Jobs John Halligan, said it would be grossly unfair to cut pay or lay people off.

Chief executive Martin Nolan has told staff at Bus Éireann that finances were in a critical position.Sources said management had a mandate from its board to implement the restructuring and all changes envisaged had been given to the Department of Transport, which had raised no objections.

The Government has insisted it cannot give Bus Éireann additional funds to resolve what is an industrial dispute.

Minister for Education Richard Bruton said it would be a "drastic mistake" for Mr Ross to intervene and undermine unions or management.