Industrial action which had threatened the holding of first semester University exams has been lifted, the trade unions and the university said in a joint statement this evening.

The industrial action was ordered by UMASA, the union representing university academic staff, and the MUT, following deadlock in protracted talks on a new collective agreement.

University students this morning held a rally in which they urged the union to lift its directives, saying they were unfair on the students (see separate story in the news section). University and Junior College lecturers had been directed not to mark exam papers, among other directives.

UMASA, the MUT, the government and the University are to resume talks tomorrow after a gap of several weeks, something which was also requested by the students in this morning's rally.

The University Students' Council (KSU), which held this morning's rally, welcomed the decision and said it would continue to monitor the situation until an agreement was reached.

It thanked all sides for heeding the students' calls.