The industrial unrest that has significantly disrupted Sydney's train network was temporarily alleviated after an urgent ruling by the Fair Work Commission.

The ruling, which came in response to a last-minute government application, suspended over 300 work bans by rail workers, effectively mitigating commuter chaos.

The industrial action led to the cancellation of 1,900 trains on Wednesday, with a further 1,000 services projected to be affected on Thursday.

The rail workers intensified their industrial bans in pursuit of a substantial pay rise, putting the state’s transportation network under severe strain.

However, late on Thursday, Fair Work Commission President Adam Hatcher issued an interim order halting the bans, offering a respite to New South Wales commuters.

A full bench hearing by the commission is scheduled for Wednesday to deliberate on the state government's plea to cease the bans entirely and enable the industrial umpire to resolve the protracted dispute, with the action paused in the interim.

Premier Chris Minns, who interrupted his summer holiday to address the ongoing eight-month rail impasse, highlighted the relentless struggle of managing Sydney's public transport under such circumstances.

"That's a joke," he stated, expressing frustration over the daily challenge of planning train services amid numerous industrial bans.

Minns further emphasized the broader impact on the city's economy, noting, "We don't know how many small businesses have been smashed because of 50 per cent of trains not running." The government's application seeks to curb the union's capacity to impose fresh work bans, potentially pushing the matter into arbitration where an industrial court might dictate wage increases.

The Rail Tram and Bus Union criticized the government's efforts, describing the legal maneuver as "a desperate attempt to shift the blame for its own failure to negotiate with workers." The union accused the administration of engaging in "cheap political tricks" to avoid substantive negotiations.

Rail workers have been demanding annual pay raises of eight per cent over four years, but the government’s proposal of a 15 per cent increase across four years appears unlikely to satisfy them.

While Premier Minns defends his decision not to put the government’s offer to a workforce vote, citing the urgency of the situation, criticism has emerged from opposition figures.

Transport spokeswoman Natalie Ward argued that the intervention was overdue, remarking, "It's no good to come after the chaos and after it's all blown up, and step in and say, you're trying to fix it."

In response to the disruptions, options for passenger refunds or possibly declaring a free travel day are under consideration, with the premier suggesting compensation for affected travelers.

Commuter data reflected the public's shift away from rail, with a 40 per cent drop in travel during Wednesday's afternoon peak as per Sydney Trains boss Matthew Longland.

Fewer than 30 per cent of morning peak trains maintained schedule adherence on Thursday.

Sydney Trains has meanwhile stood by its decision to dock the pay of workers who failed to fulfill their complete duties, highlighting instances where operational staff supported only half of the usual inter-city services.

As the city awaits further developments, the temporary suspension of work bans marks a critical juncture in this long-standing industrial conflict, providing a window for more lasting resolutions to be charted.