The nurses' union has called off tough industrial action that was due to come into force today after its dispute with the government over a nursing allowance was resolved at the 11th hour.

The nurses were all set to obey directives which, although not specified by the union, were described as affecting the running of all hospitals, hitting admissions, treatment and all types of surgery.

But the two sides managed to hammer out an agreement late on Friday evening, Malta Union of Midwives and Nurses president Paul Pace said yesterday - so it will be business as usual at Malta's hospitals and health centres.

The dispute revolved around a €582.34 (Lm250) increase in the nursing premium that nurses and midwives had been promised in an agreement signed last October.

Although they have received part of the increase in two instalments of the premium - one last October and another in February - they were later informed that the instalment due today would not include the promised rise.

The union deemed this unacceptable, fearing that its members would not be getting the full amount due this year.

Two weeks ago it warned that it would issue directives unless today's pay cheque included the increase or an agreement was reached.

It is understood that the authorities then proposed that nurses and midwives receive the rest of the increase due this year, which amounts to some €436.76 (Lm187.50), in one lump sum in December. The union, however, requested that it be divided into two instalments.

Mr Pace said agreement was clinched on Friday evening when the authorities informed the union that nurses and midwives would be given the rest of the increase due this year in two instalments - one in July and another in December.

An official agreement is expected to be signed between the union and the authorities in the coming days.