"The Minister has assured us that a panel representing the government side will be set up in a day or two for holding talks with us," CITU leader and CPI(M) MLA A Soundararajan said, emerging from the meeting at the state secretariat here.
"The strike is withdrawn immediately," he said in an announcement.
Representatives of all the 11 trade unions, including DMK's Labour Progressive Front, took part in the meeting.
The strike affected commuters with a large number of buses staying off the roads, though workers affiliated to the ruling AIADMK's labour arm Anna Thozhir Snagam continued services.
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As soon as the panel was set up, trade union functionaries would submit their representation and negotiate with them, Soundararajan said.
The Minister also assured trade union leaders that withdrawal of cases against employees who were on strike would be "positively" considered and disciplinary action dropped, the CITU leader said.
The government, which had blamed the LPF for instigating the strike, yesterday announced a hike of seven per cent in Dearnesss Allowance, from 100 to 107 per cent for the employees.