Train services for Sydney commuters were reduced by about 40 per cent on Wednesday due to industrial action, with severe wet weather also impacting the network.
The NSW government lost its bid to block the protected action by the rail union at an interim commission hearing on Tuesday, after negotiations with the union failed.
But NSW Premier Dominic Perrottet said despite the loss the interim hearing succeeded in getting "more trains on the tracks", after the union shelved plans to reduce services by 70 per cent.
"That was pleasing, to not inconvenience the people of our great state," he said on Wednesday.
A full hearing is due in the commission on Thursday, with similar industrial action set to affect commuters on Friday.
The action was triggered by a long-running dispute over the safety of a fleet of Korean-built trains.
While the government has offered to spend $264 million to address the safety concerns, it has declined to formalise the agreement.
Rail, Tram and Bus Union secretary Alex Claassens said the dispute "was to ensure commuters get the safe trains they deserve".
"However, the NSW government's continued political game playing means that we've been left with no choice."
NSW Labor leader Chris Minns repeated his calls for the industrial action to be called off, and urged the government to formalise its agreement over the Korean-built fleet.
"I think the travelling public would be furious if this industrial action continued because we couldn't get a signature on a piece of paper," Mr Minns said.
"It's crucially important that the two sides get locked in a room, the door locked, and we get an agreement on an industrial solution here, rather than it dragging on."
Transport for NSW said the rail network would operate on a reduced timetable again on Thursday.
"Despite the union concessions, the rail network will still operate to a reduced level tomorrow given the number of other services that are unable to operate due to protected industrial action," it said in a statement.
