The 1,770 former Waterford Crystal workers – along with the broader business community in the city – will undoubtedly be raising a glass this Christmas on foot of the €178 million pension deal agreed with the Government this week.

The former workers at the crystal glass manufacturer were left with almost nothing for their retirement when both the company and its pension fund were wound up in 2009 – a so-called double insolvency.

However, the staff and their trade union, Unite, were determined not to give up on the issue and fought a long battle, all the way to the European Court of Justice in Luxembourg – and have now been offered a multimillion euro settlement package.

The new package, agreed by the Cabinet this week, will see the workers concerned share €41 million in lump-sum payments – worth about €1,200 per year of pensionable service – with the balance paid out in pension payments over the coming decades. The families of 36 workers who died since the pension scheme was wound up will also benefit.

The lump sum payments will be exempt from income tax, under a special arrangement negotiated with the Revenue Commissioners.

The deal still has to be voted on by the staff concerned, but it is being recommended by Unite.

If accepted, the beneficiaries will not just be the former workers.

Unite Irish regional secretary Jimmy Kelly, who is a former shop steward in Waterford Crystal, said the lump sum payments would represent " a mini-stimulus for Waterford".

He added that “most of this money is likely to be returned to the economy through higher consumer spending”.

Something certainly worth toasting this Christmas in Waterford.