CITU leader A Soundarrajan on Thursday night had announced that the indaefinite strike was being "temporarily" called off.
Earlier, when the matter came up in the High Court, it appointed a retired judge E Padmanabhan as arbitrator to settle the wage dispute.
He said "The strike is being temporarily withdrawn keeping in mind the welfare of the people of the state", adding that workers would resume work from Friday morning.
As per the reports received, the transport workers are demanding a 2.57 times raise in their wages as compared to the salaries of the drivers.
The AIADMK-backed union, besides some others, had not participated in the protests, reported NDTV. However, it refused to accept the transporters' other demands - that the government should pay transport workers wages for the strike period and drop all criminal cases against them. "This will be provided before Pongal festival", he said.
"In the interest of children, students, patients, elders, commuters and larger section of the society, the issue has been referred to the arbitrator to adjudicate the wage dispute and the effective date of such revision of wage", a special bench headed by Justice S Manikumar said.
The Opposition DMK in Tamil Nadu on Friday told the State Assembly that its MLAs did not want any hike in their salary and that it would be given to the Chief Minister's Public Relief Fund.
"The Tamil Nadu government continues to be insensitive towards the workers' demands".
While the state government has been repeatedly urged to call of the strike and called for negotiations, the trade unions are adamant at continuing the stir until their demands are accepted by the government.
Describing the stir as being for the sake of the workers as also for the common people of the state, the unions have said they will intensify the stir.
Tamil Nadu has over 22,000 buses with a workforce of about 143,000 employees.