SIPTU has called off its planned strike action at Aer Lingus on Monday after a meeting of shop stewards from the union today.
Representatives of the trade union and management at the airline are now to attend a non-binding hearing at the Labour Court.
The proposal, which was put forward by ICTU and IBEC, was accepted by SIPTU after clarifications were considered this afternoon.
Earlier, senior SIPTU official Dermot O'Loughlin said there was a 50:50 chance that the two-hour work stoppage would be called off.
Representatives of the trade union held the talks at Dublin Airport.
It was reported the stoppage could have cost Aer Lingus up to €2m.
Dermot O'Loughlin said his members were facing financial ruin due to a €748m deficit in the airline's pension fund.
He warned that strike action would be back on the table if a resolution to the pension fund deficit was not found.
"The committee has decided, possibly reluctantly, that we are going to withdraw our notice of industrial action," he confirmed.