Around 40 Rail, Tram and Bus Union (RTBU) members went on strike at QUBE's Newcastle site on Friday morning, as part of protected industrial action to negotiate their enterprise agreement.
RTBU NSW Locomotive Division Secretary, Farren Campbell, said there were more than 150 employees taking part in rallies across the state to make a stance.
"QUBE workers have been attempting to negotiate their enterprise agreement for more than 12 months," he said.
He said the employees participated in "fairly low level" industrial action and refused to accept long freights and late changes to rosters, which he says resulted in a lockout of workers.
"The business sent out a letter to all their employees saying anyone who takes part in these bands, they will not accept any work from them, which creates this situation of these members being locked out," Mr Campbell said.
A QUBE spokesperon hit back with a response to clarify they had not locked NSW rail workers out of its sites as the union suggests.
"The RTBU is taking protected industrial action and we respect their right to do so," they said.
The spokesperon said the company's most recent wage offer of seven per cent, five per cent and five per cent over three years would have seen the NSW EA train drivers paid more than 30 per cent above the applicable award.
"Having rejected QUBE's generous wage offer, including an immediate seven per cent wage increase back paid to April, the RTBU have decided to impose significant work bans and stoppages on QUBE's NSW rail operations."
"While this is regrettable, as an integrated logistics provider, QUBE has the ability to flexibly redirect resources and to leverage our capabilities across the supply chain to deliver responsible freight and transport solutions for our customers.
"As a result, we do not anticipate significant operational impacts for the majority of our customers as a consequence of the RTBU's actions."
The spokesperson said QUBE "remained committed to proceeding to a vote on the proposed 2023 EBA with our employees at the earliest opportunity and we urge the RTBU to return to the bargaining table".
Mr Campebell said the union would like to return to the negotiating table to get back to work as soon as possible.
"We would love to settle this, no one likes taking protected industrial action, it's a lever that sometimes we have to pull to try and get a bargain done," he said.
"We would like nothing more than to finalise this bargain and get a good fair outcome for our members so we can get back to work."