Over 200 workers at Bord na Móna are seeking up to €15,000 per person in lost income after a decision by the ESB to close down the power plant in Shannonbridge for nearly six months.
The electricity generating station is closing today as contractors move in to complete repair work and an overhaul costing €8m.
The new peat-burning West Offaly Power Station was built at a cost of €240m and opened less than six years ago.
Significant corrosion of piping was discovered there, leading to safety concerns.
After initial corrective action, the ESB is closing the plant for an overhaul that will now be extended to up to six months for the replacement of boiler tube material.
Jobs will not be affected but Bord na Móna is losing more than €15m in peat sales and workers, who get overtime and bonus payments during production times at the station, have already sought remuneration for the stoppage.