Talks between union officials and management at Lough Swilly are to resume this afternoon after 80 workers were told they are to lose their jobs within days.
The Derry and Donegal workforce was told last Thursday that their employment will be terminated by Good Friday.
Philip Oakes from Unite, which represents more than half the workers, said that some of them have been with the company for over 35 years.
He said it had been widely known for some time that the company, founded by an Act of Parliament in 1853 as the Londonderry and Lough Swilly Railway Company, was in difficulties.
He said the announcement that it was to cease operating within days however still came as a shock.
Mr Oakes said: “The workers were the same as ourselves- they were hoping management would be able to secure alternative arrangements. Lough Swilly have got a lot of government contracts, delivering children to schools and Derry to Donegal services. The bus runs will have to be lifted by somebody and the hope was that another operator could be found which would take on the drivers and an element of the business.”
Mr Oakes said that talks with management were due to resume this afternoon.