A decision to bend to a rail union's demands in the hope of resolving a long running industrial dispute has been labelled stupid by the very leader who made it.
Wary of repeating his mistake again, NSW Premier Chris Minns on Monday rejected an offer that could have made all public transport in the state free for at least several weeks.
The staredown appeared to have worked after the union late on Monday dropped eight major work bans that had caused havoc with the network.
Those included distance limits for drivers and various signalling bans that had forced more than 680 cancellations over the weekend.
The changes were made on the the cusp of a legal showdown on Tuesday set to decide whether tardy and cancelled trains will sour New Year's Eve celebrations across NSW.
"It is important members and their union are in the best possible position to see off tomorrow's 424 hearing in the Fair Work Commission," Rail, Tram and Bus Union state secretary Toby Warnes told members on Monday.
"As such, the following (six) actions have to be withdrawn from 11pm this evening."
Another two will not take effect on December 28.
He'd earlier offered to drop all bans until January 7 in return for free fares for at least several weeks.
But it was rejected almost immediately by the state's Labor premier.
"I stupidly agreed to that (free fares) twice in the last six months hoping it would solve the industrial dispute," Mr Minns told reporters on Monday.
"But nothing changed.
"It's a trust issue - we don't trust the union to follow through from all their industrial demands."
If taken up, the truce would have held fares at zero until the train workers' enterprise agreement was settled, something that could take months.
The government said free fares for one month would cost $127 million while a full year could reach above $1 billion.
The increasingly bitter seven-month industrial fight will reach the Fair Work Commission on Tuesday with several applications challenging union actions on the train network.
One of the government's applications is being supported by Merivale and the Laundy Hotel group, who were worried they were stocking up for a bumper New Year's for nothing.
"The fact we've been thrown into this uncertainty is a joke," former Liberal MP Craig Laundy told Nine News.
In a leaked memo to the government, the union said the application was based on an erroneous understanding of the action that is organised and economic evidence consisting entirely of assumptions.
The union continues to demand a pay rise of eight per cent a year for four years, which Mr Minns has said is unaffordable.
He said the government won't provide it while it is denying nurses a similar claim.
The government previously offered 11 per cent across three years, including superannuation increases.
NSW Police Commissioner Karen Webb on Friday threatened to call off the world-famous New Year's Eve fireworks event on Sydney Harbour, citing safety reasons concerning planned industrial action.
"I have grave concerns," she told reporters.
