The trade union Impact has suspended its industrial action in the health service after it negotiated what it described as "firm safeguards" on the futures of 25,000 workers.
Two weeks ago, Impact began a campaign of non-cooperation with changes due to be implemented in the services from January 1st, including the establishment of the new Health Service Executive (HSE).
Workers were concerned at what they described as "vague declarations" on issues such as the decentralisation of jobs, employment conditions and pensions following the changes.
In a major breakthrough following overnight talks, the union announced it has suspended its action after negotiating safeguards over jobs and working conditions when the new structures come into place on January 1st.
Impact national secretary Mr Kevin Callinan said a detailed framework agreement, negotiated by the union, had achieved firm safeguards on key issues including job security, work location, contractual terms, employment conditions, pensions, and roles and responsibilities.
The agreement also gives a guarantee of third-party mediation if problems arise as the new system is rolled out in 2005 and 2006.
"This agreement means that all health workers will be now treated with respect in the new system, with job security and a guarantee that pay and working conditions will not deteriorate," Mr Callanan said.
"We have translated vague declarations by the interim Health Service Executive (HSE) into firm written commitments and safeguards. And, if there are disagreements over interpretation of the agreement, an independent facilitator will have the last word, not the HSE.
"Now staff can get on with delivering health services instead of worrying about their future."
Mr Callanan added that the framework agreement explicitly states that health workers' jobs will remain "until they reach the retirement age stated in their contract, save in the case of dismissal in accordance with agreed disciplinary procedures".
The deal also provides staff with assurances that they will continue to work in their present location, with any required relocations being done on the basis of "consultation and individual choice".
It also reaffirms existing grading structures and pension rights and puts procedures in place to agree staffing structures and reporting relationships with the union. The independent facilitator is to be former ICTU President Phil Flynn, who facilitated the negotiations.
Impact represents over 25,000 workers in the health service. It claimed its recent industrial action would block the setting up of the new health structures because the union represents health service managers and administrators responsible for implementing the changes.
The Tánaiste and Minister for Health, Ms Harney, expressed her appreciation to Mr Flynn and to all "who engaged in these discussions constructively over recent days".
Ms Harney has signed the orders bringing the HSE into operation from January 1 st.
"The establishment of the HSE is a significant milestone in the development of the Irish health services," she said.
"The purpose of the very significant restructuring which this represents is to enable the health services to develop to provide more effectively and efficiently for the needs of patients.
"To realise this potential, it will require the full commitment, energy and professionalism of all staff throughout the health services.
"The Irish health services have developed significantly over the years and the purpose of this reform is to enable them to develop further.
"All change poses challenges, but change on this scale is particularly difficult. I am particularly conscious of the demands being placed on those who will be most directly affected in the short term through the new management structures."
Ms Harney said the transition needed to be managed with sensitivity as well as energy so that the best of the existing system is continued into the new structures.
She wished the HSE, its board and management team and all those working in the health services "every success in the exciting period ahead".