40 Bord na Mona workers, based at the ESB Lough Ree Power Station in Co Longford, have been taken off the payroll by the company this morning after a dispute about loss of income.
The Lough Ree power station has been closed for three months due to extensive repairs after a serious problem with corrosion, but it is due to reopen next week.
Bord na Mona says it is taking action today because of the failure of the workers to comply with instructions to return to their duties in bringing peat into the station.
An unofficial dispute is underway as the workers claim they are owed money for loss of earnings during the period when the power station was closed.
The dispute does not pose a threat to power supplies as the station is still off the national grid.