Management at An Post has accepted the Labour Court's recommendation on the dispute at the company.

The Communications Workers Union has agreed to recommend that its members accept the terms of the Labour Court proposal which calls on the company to pay overdue national wage agreement increases.

Earlier this year the court ruled that wage increases under Sustaining Progress should be paid in exchange for changes to work practices at An Post's collection and delivery section. The union rejected this and began industrial action which was later suspended.

An Post had claimed that it could not afford to pay the increases without radical cost saving measures. It will now consider the cost implications of the recommendation at a board meeting on Thursday.

The court has also called on both sides to reactivate internal negotiating processes which have been stalled throughout the dispute.

The dispute at An Post had threatened to disrupt postal services during the run-up to Christmas.