Grain handlers across New South Wales are downing tools, after the union and operators at Graincorp failed to come to an agreement on a pay dispute.

The Australian Workers Union rejected a 14% increase over three years, as well as increasing the sign on bonus and back pay to the first of July.

The Industrial action will bring the bumper winter harvest to a standstill.

Rural Editor Emily Minney spoke with AWU State Secretary Tony Callinan, outlining what the union wants from the company.