Siptu members at the Kerry Group plants in Charleville, County Cork, have suspended planned strike action for tomorrow.
It comes after management agreed to attend a Labour Court hearing with the union, to discuss the dispute at the company.
It has already resulted in a series of 24-hour work stoppages in recent weeks.
Siptu's Terry Bryan said: "Yesterday evening the company confirmed that it would attend a Labour Court hearing in respect of the current dispute at its plants in Charleville.
"The company has further agreed to lift the notice of lay-off and protective notice that was issued to employees last week.
"Siptu representatives have also confirmed they will attend the Labour Court hearing and have agreed to suspend a planned 24-hour work stoppage at the plants on Friday."