The Agropur plant in Granby, Que. has reached an agreement in principle with the union representing its workers. Employees are expected to vote on it in a meeting Wednesday.
The deal comes a month after 250 workers at the plant went on strike over issues of working hours.
During the dispute, hundreds of thousands of litres of milk had to be thrown away because they could not be processed at the plant.
Labour Minister Jean Boulet made an announcement on Twitter late Sunday, congratulating the parties.
"I welcome the agreement in principle reached between Agropur and its employees affiliated with the CSD [Centrale des syndicats démocratiques]. Finding solutions is always the best way to settle a labour dispute," wrote the minister.
Simon Lajoie, communications consultant for the CSD confirmed to La Presse Canadienne that the parties reached a deal Friday night.
According to the CSD, Agropur wanted to extend shifts from eight hours to 12 and change start times throughout the week.
Agropur didn't confirm the CSD's statement, but a spokesperson said the company needed more "flexibility" from workers to adapt to the plant's needs depending on the volume of milk available.
The company is working with the union to draw up a return-to-work protocol for the striking workers.