The union is looking for a pay rise of 5 per cent a year for the next three years on the back of what it says have been bumper profits for the stock exchange listed grain handler.

The union's Newcastle secretary, Glen Williams, said today that while the union believed it was bargaining in good faith, the company had been "caught out" bringing a strike-breaking team through the Carrington terminal on Tuesday to "intimidate" its employees.

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Mr Williams said a team of people associated with a major freight company had been through the terminal "assessing its suitability for a takeover by a scab workforce".

"This behaviour is nothing short of disgusting from GrainCorp," Mr Williams said.

"They posted a record profit during the first half of this year, with a net profit after tax of $246 million - they're on their way to $370 million for the full year - and their first action is to train up scabs and develop a plan to lock out their existing workforce.

"Instead of offering their employees a fair pay rise for the contribution made to their massive profitability, the management of GrainCorp don't want to share a cent of it with the people whose hard work has actually driven these profits."

GrainCorp confirmed it was preparing "contingency" plans in the event of an industrial stoppage.

"We acknowledge the rights of the union and its members to take protected industrial action, and would have welcomed the opportunity to discuss this directly with them," a GrainCorp spokesperson said.

"With the world facing an increasing food security crisis, GrainCorp is absolutely committed to ensuring the grains supply chain continues to operate.

"At this stage, we are planning for contingencies in the event of any disruption, in order to continue delivering our services for Australian growers and our customers.

"We will continue to bargain with the MUA in good faith, as we have done to date."

Mr Williams said workers at the Newcastle terminal had lost ground financially over the past decade, having accepted lower than optimum pay increases to help the company through the difficulties of long-standing drought conditions.

He said inflation was higher than five per cent a year and the workforce had been looking forward to an increase that kept pace with the cost of living.

He said after two years of bumper east coast crops, GrainCorp was benefiting from the global rise in grain prices driven by the war in Ukraine.

"This is a perfect illustration of a management class that is totally out of control and totally deluded about the underlying causes of their commercial success," Mr Williams said,

"The last thing they should be doing off the back of their incredible run of good fortune is seeking to replace their workers with scab labour whilst they bargain for a new employment agreement."

The broader union movement has voiced its support for the MUA, with the CFMEU issuing a statement of solidarity. CFMEU NSW secretary Darren Greenfield said "the threat of a scab workforce needs to be taken off the table".

Late on Wednesday, Hunter Workers (formerly Newcastle Trades Hall Council) condemned GrainCorp's actions.

Hunter Workers secretary Leigh Shears said GrainCorp's actions flew in the face of the recent federal election result, which represented an endorsement of workers' rights, secure jobs and wage increases.

"Scab labour was forced to leave the Newcastle waterfront after community protests blocked attempts to use non-union labour across picket lines in the 1998 waterfront dispute," Mr Shears said.

"It is unacceptable that GrainCorp, a profitable company, would consider employing such tactics that do not meet community expectations of fair and reasonable treatment of workers in our region."

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