NSW unions have questioned the benefits of moving the state's Industrial Relations Commission out of Sydney's CBD as they fight the relocation plan in the very building which houses the court.
The government was to announce the shifting of the IRC from its heritage-listed sandstone home to Parramatta, west of the city, on Thursday afternoon.
However the Public Service Association launched a dispute and the plan was put on hold following talks on Friday.
Industrial manager Evan Cole says the PSA has been told the government was about to sign a lease.
"The union and its members are frustrated by the reluctance of the government to say why and how it's going to move the IRC to Parramatta and what the benefits are going to be," he told AAP.
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The government has agreed to hold more meetings next week and will also discuss concerns with the NSW Bar Association and the Law Society of NSW.
Mr Cole questioned the practicality of moving the commission, particularly given anyone who wants to lodge disputes needs to lodge papers in person.
"Unless you can start to lodge things electronically, which they haven't said they're going to do, everyone who wants to lodge a dispute will have to ... go out to Parramatta," he said.
"We're not saying keep the commission in that building, we're saying basically keep it in the CBD where it's an efficient place where people can still make use of it."
The opposition's heritage spokeswoman Penny Sharpe said the government was only seeing dollars when it should be more concerned about the history and heritage the building represents.
Labor has promised to preserve the building if it wins the 2019 election.
The government declined to comment, citing ongoing legal proceedings.
