Staff at Dublin's Gresham Hotel have called off plans to begin industrial action over the weekend.
Siptu and management at the hotel reached a compromise aimed at ending a dispute which is based on redundancies and severance payments to employees.
The deal was reached following more than 12 hours of talks at the Labour Relations Commission.
Industrial action, which was due to begin this weekend, has now been suspended pending acceptance of the deal by union members.
Earlier in the week, Siptu had claimed that hotel management had refused to stop the practice of designating trainee managers to carry out work ordinarily done by regular employees.
It said the hotel had laid off 15 full-time workers and put another 15 on short time working because of the economic downturn.
Both Siptu and the Gresham said they recognised the difficult environment in which the hotel is operating and are pleased that a satisfactory way forward has been reached.