A threat to Christmas mail deliveries was removed last night after all-day talks between An Post and the Communications Workers' Union (CWU) at the Labour Relations Commission.
A failure to agree arrangements such as overtime and staffing levels had threatened to jeopardise deliveries during the busiest time of the year for the postal service.
Following the talks yesterday, however, the two sides said they had agreed arrangements similar to those that applied a year ago.
A spokesman for An Post said the company was "very happy" that uncertainty about Christmas deliveries had been removed.
Mr Seán McDonagh, of the CWU, said resources were being put in place that equated to the "bare minimum" needed, but the union was delighted to have reached agreement.
Despite the deal on Christmas mail, the two sides are still heading for confrontation on a range of other issues.
Members of the CWU are currently voting on a pay offer and work-practice changes proposed following seven months of negotiations at the LRC. Separately they are voting to strike if the union deems this is necessary to protect existing agreements, although a pre-Christmas strike would be unlikely.
The indications are that members will vote overwhelmingly to reject the pay offer and in favour of giving officials a mandate for industrial action.
In a letter circulated to members with ballot papers, the union's general secretary, Mr Steve Fitzpatrick, describes the pay offer of 5.35 per cent over 30 months as "insulting".
The pay rise would be in three phases, and would be contingent on staff delivering specific work- practice changes.
Mr Fitzpatrick said the union's executive council had decided not to issue a recommendation on the pay offer, but his letter left no room for doubt about the leadership's view.
"We believe, that on this occasion, it would be far more effective if you gave them your honest opinion without any direction from anyone else. Once these proposals are rejected, we will be obliged to negotiate further at the Labour Court."
The changes sought by the company are extensive. It wants to cut one in three jobs in its letter post division, which employs over 5,000, and reduce an annual overtime bill of €38 million.
As part of this cost-cutting drive it is seeking full implementation of automated mail-sorting at delivery service units.
Collection and delivery routes would be redesigned and the positions of post office clerk, postal sorter and postman or woman consolidated into a single grade.
The company also proposes to employ contractors to deliver and collect mail in some rural areas.
The CWU claims the changes would have "catastrophic consequences" for some customers.
The result of the ballot on industrial action will be known next Friday, while the vote on the pay deal and work-practice changes is to be completed on December 9th.