SIPTU members employed at the Bausch and Lomb manufacturing plant in Waterford are to be balloted on pay proposals issued by the Workplace Relations Commission (WRC).
Last week, a strike was held at the plant and further work stoppages were threatened as part of a pay dispute.
SIPTU had accused the company of failing to provide an adequate pay rise for staff.
Bausch and Lomb said it had made an improved offer but that SIPTU did not bring the proposal to its members for ballot.
The matter was back before the WRC yesterday.
"Following 12 hours of intensive negotiations, the WRC has issued a set of proposals that we will bring to a ballot of our members," said SIPTU Sector Organiser Neil McGowan.
Bausch and Lomb said the agreement followed extensive engagement between the parties.
"A proposal has been recommended for acceptance by both parties which will be put forward for employees to ballot on in the coming days," the company said in a statement.
SIPTU represents more than 1,000 workers at the Bausch and Lomb plant which produces contact lenses and other pharmaceutical products, as well as providing research and development and surgical support facilities.