State Transport Minister S Raghava Rao said the cabinet sub-committee, constituted to hold talks with employees, has observed that talks should be held to resolve the issue amicably.
The employees are expected to hold talks with the Telangana government which has been considering the matter.
The employees have demanded a 43 per cent hike in salaries, but the RTC management offered 27 per cent hike.
APSRTC is yet to be divided between Andhra Pradesh and Telangana following the state bifurcation last year, though the process of splitting the corporation between the two states is underway.
The corporation is the major public transport in both the states, operating more than 20,000 buses. Its buses cover about 79.83 lakh kms and carry about 156.78 lakh people to their destinations every day.