NSW Premier Dominic Perrottet says he is pleased with a Fair Work Commission ruling on his government's spat with the rail union as the move succeeded in getting "more trains on the tracks".
His comments come as train services for Sydney commuters were reduced by about 40 per cent on Wednesday due to industrial action.
The NSW government lost its bid to block the protected action by the Rail, Tram and Bus Union (RTBU) during an interim hearing before the commission on Tuesday after negotiations with the union failed.
Further industrial action is also set to affect commuters on Friday.
The action was triggered by a long-running dispute over the safety of a fleet of Korean-built trains.
While the government has offered to spend $264 million to address the safety concerns, it has declined to formalise the agreement.
The premier said he was happy that the union "saw fit to put more trains on the tracks" after plans were shelved for more widespread industrial action.
"That was pleasing, to not inconvenience the people of our great state," he said.
The premier said services were operating at 50 per cent capacity and would be at 60 per cent on Thursday, when a full hearing on the dispute would take place.
Transport for NSW said the rail network would operate on a reduced timetable.
"The combined rail unions today made concessions to allow the operations of more trains than was originally planned to service the network," it said in a statement.
"Despite the union concessions, the rail network will still operate to a reduced level tomorrow given the number of other services that are unable to operate due to protected industrial action."
All rail lines were affected by industrial action on Wednesday, although the union said the impact would be minimal, with up to 20 trains sidelined.
It said services would be reduced by 30 per cent on Wednesday and Friday, and passengers would not be issued with fines.
"Rail workers have decided to put a stop to the NSW government taking money from people in the form of fines on public transport," RTBU secretary Alex Claassens said.
"This whole dispute is to ensure commuters get the safe trains they deserve. However, the NSW government's continued political game-playing means that we've been left with no choice."
NSW Labor leader Chris Minns repeated his calls for the industrial action to be called off and urged the government to formalise its agreement over the Korean-built fleet.
"Most people are obviously over this, and at this point the government needs to lock rail management and the unions in a room and no one can leave until it's resolved," Mr Minns told 2GB.
Australian Associated Press
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