Trains in New South Wales will temporarily resume normal services after the Fair Work Commission suspended approval of industrial action by rail unions due to a long-running pay dispute with the state government.

The decision comes after NSW Premier Chris Minns announced on Thursday - with commuters facing severe disruption for a second day in a row - that an emergency application had been made to the council to request End union protected industrial action and take arbitration decisions.

Late on Thursday afternoon, the Fair Work Commission set a hearing date for the dispute for next Wednesday. The court heard the hearing is likely to last until next Thursday due to the large amount of evidence the government plans to present.

Given that this would take the hearing beyond the five-day period within which the committee is required to hear matters, the committee issued an interim order suspending the union's protected industrial action from 6.30pm on Thursday until the committee delivers its judgment.

The government requested the hearing be held on a Friday or weekend. However, the court heard the timeframe was procedurally unfair. Meanwhile, the court heard that the union's request for a hearing on Tuesday was also not feasible as there was no bench.

Speaking ahead of the hearing on Thursday, Mings accused unions of "putting a noose around the public transport system while demanding more and more money" and said the government was working with unions "in good faith".

"We are not taking this lightly. This is a big call for a Labor government," he told reporters.

The Rail, Tram and Bus union described the government's application to the committee as a "desperate attempt to shirk responsibility for its failure to negotiate with workers".

"For 44 days, the government has failed to hold a single bargaining meeting with the United Railway Union," the union said in a statement.

"Instead of negotiating, the government is scapegoating rail workers for the economic mess they themselves have caused. The real cost to the economy is not the strikes but the government's refusal to negotiate a fair deal."

The government announcement follows strike action by unions - as part of a joint rail union demand for a 32% pay rise over four years - with commuters facing 402 train cancellations on Thursday morning after a day of train disruption situation. Wednesday.

The government said it expected more than 1,000 trains to be canceled by the end of Thursday. A large number of flight cancellations and delays are expected on Friday ahead of a temporary order suspending industrial action.

Sydney Trains chief executive Matt Longland said service disruptions were likely to be more severe in the afternoon.

"We do expect to see this again today, hopefully not to the extent of yesterday," he said.

He said service disruptions were worse in the inner west and connecting the Blue Mountains to Parramatta.

This week's strike action comes as the United Rail Union considers the state government's proposed wage hikes, with a final decision due on Thursday.

Negotiations for a new pay deal have been going on for eight months, with NSW Transport Minister Jo Haylen announcing proposals for a 13 per cent pay rise, 1 per cent efficiency improvement and super over four years while proceedings are ongoing at the Fair Work Commission and the Federal Court. A 1% pay rise – well below the rail unions' combined demand of 32% over four years.

"We have made a very fair and reasonable offer ... however, unfortunately, their comments in the media and elsewhere are that they do not support that fair and reasonable offer," Helen told reporters on Thursday.

On Thursday, a reporter asked Mings if the dispute proved the government was "not as good at working with unions as you might think" after campaigning on public sector pay rises.

"Every Labor government in New South Wales has had them," Mings responded. "What I promised in the election was that when these things happen we will always act in the interests of the people, the people of New South Wales, and I believe that's what we've done."