Rail strike: Talks Stall as Unions Turn Down $1000 Lump Sum Offer

Rail unions have knocked back a $1,000 lump sum cash payment for all 12,000 Sydney and NSW Trains employees as negotiations continue to stall.

9NEWS can reveal that one of the offers put to the unions during intense negotiations last night was a 2.75 percent annual pay increase, free travel on public and private transport and a $1000 cash payment as an “agreement bonus”.

It was to be paid into the accounts of staff in their next pay cycle.

It’s understood because some conditions around rostering were not met the Rail, Tram and Bus Union refused to agree to it.

From Thursday, Sydney Trains staff will be refusing to work overtime, leading to mass cancellations of services on many routes. (9NEWS)

A further offer of a 3 percent annual pay increase with free transport is yet to be agreed to.

“We’re not taking the mickey out of anyone,” RTBU NSW Secretary Alex Claassens said last night.

“Our members are angry, they’re fed up, they’re sick of getting the blame… We just want a fair deal.”

It comes as the NSW Government plans to cut a third of services this Thursday as workers begin to refuse overtime.

Sydney Trains will run what is a Saturday timetable on Thursday with buses supplementing some services.

Unions have turned down three offers from the NSW Government. (AAP)

It means that in some areas where services normally run every 4 minutes during the morning and afternoon peaks, trains will only arrive every 15 minutes.

The lines hardest hit will be the T1 Western Line, the T8 Airport Line to Macarthur and T1 Northern Line. There will be reduced services too on the T5 Richmond to Leppington, T4 Illawarra and Eastern Suburbs and the T3 Liverpool and Inner West.

Unions and rail bosses are still hopeful to resolve the pay dispute in meetings today, but Sydney Trains boss Howard Collins conceded it’s too late to cancel Thursday’s industrial action.

9NEWS understands the Rail Tram and Bus Union is willing to put the 3 percent offer to their 9,000 members tonight if clauses around rostering are changed and further sweeteners added.

The NSW Government is looking at legal options to force people to work if negotiations fall apart.

Unions now say Thursday's overtime time is inevitable. (AAP)

“We’ll take every action we can as a Government to prevent industrial action on Monday,” Premier Gladys Berejiklian said.

“We do have legal recourse and we will be taking that action, but of course our preference is that negotiations end in a positive way.”

The NSW Government has put three offers to unions, two of which were above the 2.5 percent wage cap after productivity gains were found.

Other unions including the Australian Workers Union and Electrical Trades Union are understood to be supportive of the current offer.

The full-scale railway strike is planned to commence on Monday.