Management and workers at Peerless Rugs in Athy, Co Kildare, have agreed to an early Labour Court meeting to discuss their differences.
A blockade by factory workers which prevented senior managers and a receiver from leaving the factory ended at 1.30 a.m. yesterday morning. The blockade lasted for eight hours.
A Fianna Fail senator, Mr Sean Farrell, said the lock-in was resolved after management gave an undertaking to the workers that negotiations would continue yesterday.
Workers are seeking improved redundancy payments when the factory closes later this month.
The 65 workers, represented by SIPTU, are unlikely to find work in the region, according to the union.
They took the action after they were told the plant was to close immediately, two weeks earlier than planned, and they would receive statutory redundancy only.