The Cabinet has agreed to a €178m settlement to end a legal dispute taken by workers at Waterford Crystal.

Ministers agreed to the settlement this morning, after a lengthy legal battle was taken by workers who were laid off when their employer was wound up in 2009.

Trade union Unite has been fighting to ensure a deal since the closure.

More than 1,700 workers will benefit from the payments, after the European Court of Justice (ECJ) found that the state had to step in to pay their pensions after their private scheme went bust.

Under the plan, workers with pensions between €12,000 and €24,000 will get 90% of €12,000 - plus 67% of benefits of between €12,001 and €24,000.

The Tánaiste Joan Burton outlined the figures earlier:

Ms Burton told Newstalk Lunchtime the deal will bring comfort to the former workers.

Last year, Unite took a landmark case on the issue to the ECJ and won.

The 10 workers took the case against the state to the court in Luxembourg for its failure to establish a pension protection system.

In a ruling, the ECJ said that Ireland has not fulfilled its obligations under an EU directive, designed to protect the pensions of workers in the event of the insolvency of their employer.

Newstalk.com's political editor Shane Coleman explains.