By not taking any action, he would force them to prolong their agitation. If the employees do not get their salaries on 1st of February, the agitation is likely to break due to pressure from the government employees. There would be pressure from the employees on the leaders to call off protests. If sources are to be believed, Jagan is also not planning to impose ESMA on the employees, unlike Chandrababu who used ESMA to break down the protest. Thus the employees will have nothing to complain about.
Meanwhile, pressure is also sought to be built on the employees through social media. Already, the employees' strike is not invoking any sympathy on social media. There are memes, cartoons and comments against the employees and their strike. Thus the YSRCP wants to portray the agitation as a TDP-backed agitation.
Thus Jagan wants to be patient while dealing with the employees. They do not want any violence. He also seems disinclined to arrest them or even invoke ESMA against them. Thus he wants to test the patience of the employees and wear their patience out. Let's watch who wins in this war of nerves.