Plans to lay-off 70 workers at a Bord na Móna operation in Mount Dillon, Co Longford have been suspended.

The union SIPTU said this decision followed "lengthy discussions" with the Bord na Móna Group of Unions (GOU).

The company had earlier said it was laying off 78 seasonal employees, and putting the 70 permanent workers on temporary unpaid lay-off from next Thursday.

The company said it was forced to take the action after the ESB suspended operations at the nearby Lough Ree Power Plant, due to concerns over the discharge of hot water into the River Shannon.

The Mountdillon facility supplies peat to the power plant.

The Environmental Protection Agency (EPA) has been investigating the plant over the high temperature of the cooling water it pumps into the river.

On this latest development, SIPTU sector organiser Willie Noone said: "Local discussions will take place next week with a view to maximising the number of workers who can remain in employment.

"The GOU is satisfied with the progress made today.

"The outcome also confirms that all parties are committed to the recent collective agreement made between the GOU and the company."