Management at the Mercy University Hospital in Cork met today met with officials representing the five trade unions at the hospital.
The meeting follows the decision by both the Irish Nurses' Organisation and IMPACT to ballot their members on strike action over the coming days.
Following the meeting, the hospital issued a statement saying that it had rescinded its decision to remove premium payments for staff pending discussions on alternative means of cost reduction.
A further meeting is planned between both sides for 14 May.
Meanwhile, The Irish Nurses Organisation has claimed the Government has ignored a staffing review body report that has recommended the appointment of 763 extra nurses and health care staff around the country.
At the start of its annual delegate conference in Killarney today, INO General Secretary Liam Doran said the appointments were needed to end an unacceptable level of risk to patients and staff and to ensure basic quality care.
The recommendation was made in the report of the Review Body to the high level group on staffing levels in the health service.
Over 350 INO delegates are due to debate an emergency motion tomorrow, claiming the government has launched a penal attack on nurses pay and conditions.
The motion gives the organisation the power to ballot for all-out strike action.
The INO says that the pension levy, combined with increased taxation, has taken over €100 out of the salary of the average nurse and midwife each week.
It claims that the delivery of patient care has been severely compromised by the cuts proposed for this year.