The posts had been threatened following a fire which gutted a sister factory in Galway in January and on which the Kiltimagh base was dependent for raw materials.

Kiltimagh IRD chief executive Mr Joe Kelly said the return to work now means that Kiltimagh and the broader area of East Mayo could look forward to a bright future in terms of jobs and he hoped that the overall Farah operation would now be located in the town.

Mr Kelly praised the many people who were involved in bringing the situation to a settlement conclusion. He praised, particularly, the Farah employees and management for their maturity in reaching the decision.

He also praised the officials of SIPTU, Forbairt and the IDA for their untiring efforts to help resolve the impasse. He singled out Government Chief Whip, Jim Higgins for his efforts throughout the process which had helped the situation enormously.

Mr Kelly said the return to work, which commenced on Monday, now meant that IRD Kiltimagh could go forward with its own plans for increased job creation through the provision of industrial workspace in the town.

Mr Kelly said the site which IRD Kiltimagh had acquired from the Kiltimagh Town Improvements committee would now be developed and new advance factory workspace would be provided in this area.

Minister Jim Higgins said the settlement was great news for the entire region. He too, paid particular tribute to Farah management, SIPTU, IRD Kiltimagh, the IDA and particularly the workers for the outcome.

Mr Higgins stated: "It is quite obvious that a lot of behind the scenes negotiations have taken place.

"Not alone is the future of Farah in Kiltimagh secure, but I am very optimistic that additional jobs will be in the pipeline in due course."