Strike action by SIPTU members at Bord na Móna Recycling, which was planned for tomorrow, has been called off.
Union representatives met with management this afternoon in a bid to resolve a dispute over the planned sale of the business.
SIPTU said the company offered significant improvements to the terms contained in a Workplace Relations Commission (WRC) proposal.
According to the union, Bord na Móna offered improvements to transfer payments and commitments regarding the protection of terms and conditions.
SIPTU said it will meet with members next week ahead of the proposals being put to ballot with a recommendation for acceptance.
In a statement, Bord na Móna Recycling said that the agreed proposals "provide a strong framework of assurances to protect existing terms and conditions for all employees, along with a continued commitment to engage with SIPTU".
In February, Bord na Móna said it had reached an agreement to sell its recycling business to KWD Recycling, subject to regulatory approval.
SIPTU had accused the company of failing to agree to a Registered Employment Agreement (REA), which would guarantee worker protections for terms and conditions in the event of a sale.
SIPTU Divisional Organiser Adrian Kane said that while the strike has been called off, the union still wants to meet with the Government to discuss the privatisation of the waste collection industry.
"We are seeking an urgent meeting with Minister for Climate, Environment and Energy, Darragh O'Brien, to discuss this issue which is of major concern to our members who are both employed in this industry and its customers," Mr Kane said.