The rail union has cancelled its plan to switch off Opal card readers across the Sydney network.
From next Wednesday, the Rail, Tram and Bus Union (RTBU) had planned to shut down the system "indefinitely" as part of its ongoing dispute with the NSW government over fair pay and conditions.
Also in contention was the safety of the billion-dollar South Korean-made intercity fleet, which has remained idle since the first trains were delivered in 2019.
It's the latest chapter in the long-running dispute between the two parties.
"The delegates made the decision to cancel the action of turning off Opal machines scheduled to start next Wednesday," the RTBU said in a statement.
"The gates at stations will also be closed from Sunday."
The turnaround comes after the government earlier on Saturday announced they had lodged an application with the Fair Work Commission (FWC) to stop the union's action, and Transport Minister David Elliott's warning last week that: "Any person who is seen to be doing this [Opal action] is prosecuted".
In a statement on Saturday, the government said the unions had rejected other formal requests for the action to be withdrawn, and expected the matter to be heard "within the next 48 hours".
"The NSW government lodged a section 418 application in the Fair Work Commission to have the destructive action proposed by the Rail, Tram and Bus Union to turn off or short circuit Opal machines declared 'unprotected'.
"The application to the independent FWC has been made following legal advice received by the government that the proposed action is prima facie unlawful."
The move was seen as another "legal stalling" and "sneaky tactic" by the RTBU.
"The NSW government has moved to stall negotiations with rail workers again by launching yet another baseless legal claim aimed purely at distracting from the real issue at play," the union said.
"The government has engaged in sneaky tactics to stop protected industrial action from going ahead next Wednesday, which would have seen commuters travel the rail network for free."
Last month commuters were hit with weeks of disruptions and delays due to rolling industrial action, which included bans on drivers operating foreign-made trains and strikes.
It lead to Premier Dominic Perrottet threatening to terminate the enterprise agreement for rail workers, prompting a series of hearings at the industrial umpire.
The union said it is now considering what other forms of action it will pursue, but has also urged the government back to the negotiating table.
"Rather than sitting down and trying to negotiate with the union on delivering safe trains and fair wages and conditions for workers, the government is determined to drag the issue out for as long as possible."
