Better redundancy packages and a possible extension to the closure deadline could be on the cards for staff at the briquette factory in Littleton.
Bord na Mona management have agreed to negoatiate with union representatives, who had been treatening to strike.
The Semi-state company announced earlier this month that it was shutting down all peat processing at the Tipperary site by April next year with the loss of 69 jobs.
The talks are due to start this afternoon in Littleton after management got the green light for negotiations on redundancy conditions and potentially keeping the factory open a little longer.
Independent TD Michael Lowry is welcoming this as a significant move from the company.