Sydney train commuters face more disruptions as more than 200 rail ...

More than 200 Sydney train workers have stayed home and hundreds of services have been cancelled as industrial action causes chaos on the city's rail network.

The NSW government said 210 trains workers have not reported to their shift so far this morning, and 335 train services have been cancelled. 

Sydney Trains chief executive Matt Longland said about 90 per cent of services were operating normally but warned the situation remained "unpredictable".

Mr Longland said there were "minor" delays on the Central Coast through to Gosford due to an unrelated incident, and delays on the Hunter line between Maitland and Newcastle. 

"Other lines are holding up well at this stage, but again we may well see delays increase as the afternoon progresses."

Transport Minister John Graham told the ABC that while services would be running to the timetable, there will still be some delays and cancellations.

He urged parents to find alternative travel options for children heading to school this morning. 

"Particularly for kids of school age, we're encouraging parents to find a different way to get them to school to move them around the city, that's the make sure that they do make it to their final destination," Mr Graham said.

"We're encouraging people to continue to check the apps and we'll update regularly update after."

Premier says government is 'on the side of commuters'

NSW Premier Chris Minns said the government "cannot give in to the union's blackmail" despite ongoing disruptions to the train network.

"If we were to hand over a blank cheque, if we were to continue endless negotiations or even pay heed and accept the latest harebrained idea from the union, it would mean more industrial disruptions," he said at a press conference on Monday.

"It might be in three months or six months or 12 months, but it would only embolden them, and you'd have more disruptions on our railways, more disruptions for public transport in New South Wales."

The premier said paying rail workers to strike would only lead to further industrial action.

"The idea that the New South Wales government would pay workers to go on strike would only lead to one conclusion and that is more strikes," he said.

"If at the end of the day you can get pay for taking industrial action, that will mean more industrial action on the public transport network."

Mr Minns said some claims made by the RTBU were "outrageous" and the government had "to draw a line in the sand".

A Fair Work Commission meeting is scheduled for Wednesday.

"We are on the side of commuters here."

It comes after the NSW government lost its latest bid at the Fair Work Commission (FWC) on Sunday to stop industrial action by the Rail, Tram and Bus Union (RTBU).

The government accused the union of a "coordinated effort" to cripple the network and its members of using sick leave inappropriately, arguing that the no-shows amounted to unprotected industrial action, and were hence unlawful.

However, the commission found there was no evidence that Friday's actions were coordinated by the RTBU.

Union says one-off payment stands between parties

RTBU NSW secretary Toby Warnes told ABC Radio Sydney that the union and government nearly reached a deal last Thursday. 

He said a $4,500 one-off pay to workers was the only thing standing between the two parties. 

"We all but had a deal done last Thursday night. All but had a deal," Mr Warnes said. 

But Mr Graham told ABC Radio Sydney that the government could not afford a one-off payment but rather better pay.

"This has taken so many twists and turns over the course of this dispute. At one point it was about 50 cent fares, then it was about 24-hour running, now it's about a $4,500 one-off payment.

"What we can offer is fair pay and conditions and if we can get down to that issue … that is something we are prepared to offer, that's something we can get down to." 

Sydney Trains fails to stop industrial action

Sydney Trains has lost its bid to stop industrial action taken by members of the Rail, Tram and Bus Union.

'471 notices' and staff no-show

On Friday, an unusually high number of staff did not turn up to work. At the height of the disruption, more than 800 services had been cancelled and 365 delayed.

And while the absentees declined over the weekend, to about 360 on Saturday, and about 260 on Sunday, the impacts were still being felt, with more than 500 services delayed or cancelled.

Mr Warnes blamed the uncertainty on the government issuing a "471 notice" to employees on February 5, informing them they would not be paid for any work during a shift in which they took part in a partial work ban.

The "lockout", he said, was in place until Wednesday week.

"Any disruption that people see tomorrow, Tuesday or into the next week will be caused by the government.

"We call on the government to drop its lockout notices. Services will resume running pretty much as normal, albeit, but potentially a little bit slower in the outer suburban areas, but people will not notice the impact of the go-slows."

The government has said it is prepared to withdraw the 471 notices, if the union cancels its go-slow action.

On Sunday, Mr Graham said that if impacts to the network increased, the government would not hesitate to again file the same application that was knocked down by the FWC, although he's setting his sights on Wednesday.

"This negotiation has been going on for 10 months. The government view is it's time to stop that industrial action, the impact it's having on commuters and businesses, and allow the parties to sort through the final details on this deal."