(Adds the Prime Minister and Dr Gatt's comments)
The Malta Hearses Association has called off all industrial action and will be withdrawing from the Malta Transport Association, it was announced tonight.
The association's members will return to work normally tomorrow (Thursday).
The industrial action was called off after agreement on liberalisation issues was reached with the Transport Ministry.
The Prime Minister hailed the agreement as a major step towards a better service to the people.
Among other things, the agreement provides that the Transport Ministry will be helping the association to deal with liberalisation - in the same way as financial and technical assistance has been given to other sectors. It was agreed that any newly licensed hearses have to be new. Further details are expected to be announced tomorrow.
The association said it never agreed with any violence, on people and property. Nor had it ever wanted to harm the image of the country.
Prime Minister Lawrence Gonzi said he was satisfied that common sense had prevailed.
"This is a major step towards a better service to our people and the government looks forward towards the discussions that will lead to further developments and improvements in the public transport. I hope that the other sectors involved in this dispute stop their useless actions. I would like to thank the forces responsible for the maintenance of order for their efforts," Dr Gonzi said.
Transport Minister Austin Gatt said: "I am satisfied that hearse owners have seen sense and accepted the reality of liberalisation. This action has been out of proportion to the issue at hand but I do believe the matter should now be resolved since all the other transport bodies had ordered this action on the spur of the hearses issue. Hearse owners have buried monopolies in public transport. The future is better public transport which we want to build with private investors, incumbents and new players. The public rightly expects to be well served and we have today made an important step forward," Dr Gatt said.