Staff at its five main campuses stopped work for an hour yesterday afternoon. More than 100 staff voted unanimously to reject the university's pay offer of 16 per cent over four years. Staff are seeking 20 per cent over three years.

National Tertiary Education Union Newcastle branch president Suzanne Ryan said its committee would decide on further action, which could include boycotting graduations, work bans or withholding marks.

Dr Ryan said university management was treating staff "with disdain".

"They refuse to acknowledge the considerable productivity increases made over the past years by staff while giving themselves huge increases," Dr Ryan said,

The sector's bottom increase was 16 per cent over three years and university needed to stay competitive.

"We do not expect to be the top but we pride ourselves on being a research university," she said.

A University of Newcastle spokesman said it had been meeting regularly with the three staff unions to negotiate the new agreements and would continue to work with them.

"The negotiations are proceeding well and agreement has been reached on almost all points," the spokesman said.

He said the university's pay offer was consistent with other universities, and they had also agreed to increase the casual loading rate.