Monday's planned train strike in Sydney cannot go ahead, as ruled by the Fair Work Commission, but the peak union body says this demonstrates the right to strike in Australia is "nearly dead".

Key points: The NSW Premier said it would be "business as usual" on Monday with Fair Work ruling against the proposed strike

The NSW Premier said it would be "business as usual" on Monday with Fair Work ruling against the proposed strike Trains delays were still likely on Thursday afternoon as the overtime ban stays in place until 6:00pm AEDT

Trains delays were still likely on Thursday afternoon as the overtime ban stays in place until 6:00pm AEDT Sydney Trains chief says they are drawing up another offer to take to union members

Industrial action, which commenced early this morning, has already caused disruption on Sydney's train tracks with more than 1,000 services cancelled as workers stage an overtime ban.

All industrial action was ordered to be suspended for six weeks from 6:00pm on Thursday night, which brought the overtime ban to an end.



Lawyers for the NSW Government have been arguing against the industrial action, saying it will cost the state $90 million, bring the city to a standstill and force the cancellations of elective surgery.

Senior deputy president of the FWC Jonathan Hamberger found the strike threatened to endanger the welfare of the community and the thousands of people who rely on the network to get to work and school.

He said it would also cause significant damage to Sydney's economy, which he described as the "largest" in the country.

Rail, Tram and Bus Union (RTBU) state secretary Alex Claassens said his organisation would respect the decision of Fair Work and discontinue industrial action.

"We are a law-abiding union. We've always followed the rules and we will continue to do that," he said.

Right to strike 'nearly dead'

The ruling has been condemned by the Australian Council of Trades (ACTU) who say the "basic right to strike in Australia is very nearly dead".

"Rail workers followed every single rule and law, and still the Minister of the day can get an order to cancel bans on working excessive overtime," ACTU secretary Sally McManus said.

The ACTU said the right to withdraw labour is a fundamental human right, denied to most Australian workers most of the time.

"Working people's wages in Australia are so stagnant because the rules are stacked in the favour of the employers," Ms McManus said.

"We need to change the rules, because Australia needs a pay rise."

Business as usual: Premier

Sydney trains were packed with commuters during industrial action this morning. ( Twitter: @ariskinnas )

NSW Premier Gladys Berejiklian said it was a "huge relief" the strike would not take place on Monday and expressed support for Transport Minister Andrew Constance.

"Now we have certainty. Business as usual," Ms Berejiklian said on Thursday.

"I'm urging everybody from today to restore good faith, maintain good faith, in all negotiations moving forward.

"I have been concerned that the union movement did not withdraw the strike action — we gave them every opportunity to do that."

Union and Sydney Trains negotiating

Sydney Trains and the RTBU representatives have been locked in another round of negotiations about pay and conditions today.

Sydney Trains chief executive Howard Collins said documents were being drawn up for another proposed pay deal for rail workers.

"We are going to work this afternoon as long as it takes to get a package ready to go out to the membership and unions," Mr Collins said.

"We will also be talking about how they can work with us to ensure we get services back working normally as soon as possible.

"It's all about us focusing on talking and getting this deal on the table and moving forward."

Mr Claassens said he was "fairly optimistic" they could come to an agreement over conditions and wages.

"At the end of the day we have always cared about our transport system," Mr Claassens said.

"We want it to work and we want to work."

Premier adds to text message criticism

A text message sent out to RBTU NSW train workers. ( ABC News: Sarah Gerathy )

The RTBU conducted a text poll of members on Tuesday night, sending out a message with Sydney Trains' offer of a 2.75 per cent annual pay rise and added benefits.

Members were asked to text back if they wanted to call off the strike. An unreturned response was counted as a "no".

Less than 6 per cent of members voted to call off industrial action.

The Premier criticised the method of communication.

"I urge the union to act in the interests of the public, work with Sydney Trains management and Government moving forward, to ensure that their members … have the opportunity to consider the fair and reasonable agreement," Ms Berejiklian said.

"Not by text message, not with a short amount of time, but workers have the right to consider their position, the agreement, through a fair process."