The union Siptu has said it hopes to conclude a deal by the end of next week with Aer Lingus which is expected to generate savings of €10 million at the airline.
Siptu sources said yesterday that difficulties over the length of the core working week which had emerged in recent days had now been resolved.
The deal will set the core week at 35 hours and 50 minutes.
The sources said yesterday that other issues remained outstanding, but the union was confident a final deal could be reached by the end of next week.
The union is expected to then put the proposals to its 1,800 members at the airline in a ballot.
The deal with Siptu would account for about half of the €20 million cost-saving programme which Aer Lingus is seeking to introduce.
Aer Lingus has told investors that the €20 million cost-saving programme will be implemented in the current year. It is seeking to generate the balance of the savings through agreements with unions representing other staff such as pilots and cabin crew.
Last week Aer Lingus chief executive Dermot Mannion warned about 1,500 pilots and cabin crew that unless a deal was concluded by this week the company would effectively confiscate pay increases due to them under the national agreement Towards 2016.
He said the position of the cabin crew committee of the union Impact on the cost-saving agenda had been "very disappointing".
Mr Mannion said unless agreement was reached the company would consider that pay increases due to staff, which the airline has already frozen, would be considered as their contribution towards the cost-saving programme.
It is understood that Impact yesterday told Aer Lingus management that it was willing to continue in talks over the cost-saving programme.
However, in a letter to Mr Mannion it said it did not accept that the company had any basis for its warning that staff would forgo the increases due under the national agreement if a deal was not concluded this week.