Most suburban trains ran to timetables on Friday following the suspension of widespread industrial action across NSW's throttled rail system, although extensive delays continued on intercity lines.
In response to the Fair Work Commission loss on Thursday night and rising public anger, the combined rail union adjusted their offer.
The union says its adjusted offer included "fair wages, safer conditions and job security". (Mick Tsikas/AAP PHOTOS)
The offer was presented about midday, and included "basic, reasonable demands: fair wages, safer conditions and job security", the union said.
"Members have been consulted throughout this process and will have the option to vote for or against it, pending government approval," a spokeswoman told AAP.
But multiple government officials denied receiving a counteroffer.
Transport Minister Jo Haylen only went as far as confirming a letter she'd not read had been received by the government.
"If the unions have a counteroffer that goes to wages and conditions ... Â in writing, we would, of course, consider it," she said.
The combined rail union, which represents 10,000 rail workers, including Rail, Tram and Bus Union members, has been wedded to its original claim of annual eight per cent pay rises over four years.
The government's latest offer is 15 per cent over four years, including a federally mandated superannuation increase.
Delayed maintenance meant two in three intercity trains were late or cancelled. (Dan Himbrechts/AAP PHOTOS)
Premier Chris Minns on Friday said he had not seen the union's counter offer, but it would not deter the government from continuing with its case before the commission to have the pay dispute settled.
"It's very late in the day to receive a counteroffer from rail unions," he said.
"We've been down this road before with constant negotiations."
The commission's decision cut short an array of work bans organised by drivers, maintenance staff and other rail workers that had already caused nearly two days of chaotic scenes.
Some 1900 trains were cancelled on Wednesday with another 1000 cancelled on Thursday as 350 work bans strangled operations.
Transport for NSW data showed just 18 per cent of trains were on-time on Thursday, some running four hours late.
Suburban running bounced back above 90 per cent on Friday but the ripple effect of work bans continued on intercity services, with about two in three trains late or cancelled.
Those issues were put down to delays in critical maintenance including the 5000-plus compliance inspections required every week.
"This isn't something you can flick a switch on," Sydney Trains chief executive Matt Longland said.
The parties will return to the commission on Wednesday, when the full bench hears the government's bid to bring on compulsory arbitration.
The government is expected to provide evidence backing its argument that the industrial action has significantly damaged an important part of the economy.
"The Fair Work Commission has limited powers to intervene in such disputes," workplace law expert Giuseppe Carabetta said.
"It can only intervene if the bargaining dispute reaches 'crisis' levels and either does significant harm to the economy or poses a risk to community health and safety," he said.
"We won't know with certainty until Wednesday whether the Fair Work Commission will agree the damage is significant enough to trigger arbitration."
The rail unions lashed the government for running to the industrial umpire as a "delay tactic" from bargaining.
"Instead of taking responsibility, they've chosen to play political games and shift blame, all while leaving workers and commuters in limbo," the main union said.
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