Planned strike action at Dublin Bus and Bus Eireann this weekend has been called off.

It comes after unions and management met at the Labour Relations Commission (LRC) late into the night, in a row over the privatisation of some bus routes.

This latest round of talks between management and unions at Bus Eireann and Dublin Bus came after two days of strike over the May bank holiday weekend.

The action caused travel chaos for hundreds of thousands of people, and cost the companies millions.

The LRC called both sides back in on Monday and after three days of intensive talks, an agreement was reached overnight.

Unions say it includes a commitment from the bus companies that any legacy costs from the tendering process will not be borne by workers; as well as assurances on workers terms and conditions, and that there will be no compulsory transfer of staff.

The Transport Minister Paschal Donohoe told the Pat Kenny Show here on Newstalk several factors will influence the tendering process for bus routes.

Bus services will now operate as normal this Friday and Saturday and the threat of further strike action has been withdrawn.

Dublin Bus has welcomed the settlement proposals and the withdrawal of any further planned industrial action.

"Our services will operate as normal on Friday 15th and Saturday 16th of May", it says in a statement.

"We thank the Labour Relations Commission for their assistance throughout this process and also thank all the parties involved in the talks for their positive and constructive approach," the statement adds.

Martin Wall is industry correspondent with the Irish Times. He explained the deal to Newstalk Breakfast earlier.