NSW Premier Chris Minns has rejected the proposal from the Rail, Tram and Bus Union (RTBU).
The organisation previously offered to halt industrial action until January 7 if the government provided free public transport for commuters.
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RTBU NSW Secretary Toby Warnes described the offer as a “peace deal” and urged the government to accept it.
“We think this is a sensible way forward,” Mr Warnes said.
However, Mr Minns dismissed the proposal and raised some concerns about the long-term repercussions.
“The government has to draw a line in the sand,” he said.
Mr Minns said agreeing to fare-free days would “invite more industrial chaos next Christmas, Easter, and beyond.”
The state government said the proposal is too expensive for taxpayers and pointed out that fare-free days in the past haven’t solved the dispute.
The RTBU is demanding a 32 per cent pay rise over four years, equating to 8 per cent annually.
However, Mr Minns said the offer was unaffordable and could result in higher fares for commuters.
“What it would mean under those circumstances is literally a massive increase in the amount of fares that are charged to NSW commuters if we agree to that salary increase,” Mr Minns added.
“I think this is a bit of a game but the game is unfortunately at the expense of the people of Sydney.”
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