Anthony Albanese says rail unions are alienating people with industrial action and should settle their long-running pay dispute with the NSW government, which has clogged Sydney’s public transport network on and off for months and infuriated commuters.

The prime minister dead-batted questions on Tuesday about whether his government will terminate the dispute, which could land on Workplace Relations Minister Murray Watt’s desk if the NSW government loses a pivotal Fair Work Commission case to suspend industrial action.