Unions and the NSW government have held a "conciliatory" meeting and will work through the weekend to resolve their issues before it's too late to stop a planned 24-hour strike by rail workers.
More than 9000 Sydney train workers are due to strike on Monday, January 29, as they push for a six per cent pay rise and improved conditions.
The government is holding firm on a 2.5 per cent wage increase.
Transport Minister Andrew Constance, who earlier in the week described the strike as a "silly stunt," met with union officials on Friday morning in an attempt to come to an agreement.
The meeting was "conciliatory" according to Rail Tram and Bus Union's NSW secretary Alex Claassens.
"(Mr Constance) came to the table with a willingness to actually have a conversation ... and I think he's committed to trying to resolve this mess," he told reporters in Sydney.
"There are still about six or seven really key issues for us, they've given us a commitment they are going to work on that all over the weekend."
Mr Claassens is hopeful when talks resume at 10am on Monday a "package" will be agreed to resolve the dispute but says the strike will still likely go ahead.
"As far as the RTBU is concerned the actions are still in play, we will still commence our overtime ban on Thursday and we still have the strike action on the following Monday and it will need a fairly good package for us to be able to withdraw that action," he said.
"Nobody wants the action really but we've all got to do what we've got to do to make sure that the respect of the workers out there is maintained and we all get a reasonable payoff."
Mr Claassens said calling off action was a complex process.
Railway workers on Friday began the first phase of protected industrial action, wearing their union shirts and badges to work.
Mr Constance previously warned the strike would "shut down the city".
Premier Gladys Berejiklian said she was pleased there had been "constructive dialogue" in an atmosphere of good faith.
"Negotiations of this type are always robust and the government is going through the process that's involved in getting to an outcome," she said.
"What I don't want to see is customers inconvenienced ... none of us want to see that and I think, hand on heart, all parties don't want to see that."
Some Sydney businesses have already organised contingency plans, telling employees to work from home on the day of the strike.
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