GAZA - Gaza's public sector union suspended protests on Wednesday that had paralyzed the local economy and threatened the deal on a Palestinian unity government but said it would resume its action if its members were not promptly paid.

The pay dispute involving some 40,000 public servants erupted last week shortly after Hamas, which has ruled Gaza since 2007, and Palestinian Authority President Mahmoud Abbas' Fatah movement formed a unity government of technocrats to end years of feuding.

As part of the protests in the coastal enclave, police loyal to Hamas have been blocking access to local banks since last week. When they pulled back on Wednesday, Gazans formed long queues to withdraw cash from ATM machines.

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