A protest rally is expected outside the ALP's Country Conference in Port Macquarie today and the United Services Union is planning mass meetings at Wallsend and Sydney in the next couple of weeks.

United Services Union general secretary Ben Kruse said a Labor committee meeting yesterday morning approved the sale of EnergyAustralia, Integral Energy and Country Energy.

Development sites associated with the power stations would be sold, after negotiations between the Government and the union failed to reach a compromise.

"The [union] opposed the policy on economic, social, environmental and industrial grounds," Mr Kruse said.

"But the majority view of the committee . . . was that the proposal meets the ALP public interest policy criteria."

Union organiser Scott McNamara said about 300 retail workers were based at Wallsend.

Mass meetings would gauge member support for industrial action.

"At this point in time we're seeking guidance from membership on whether we take the campaign to that level," Mr McNamara said.

Newcastle Trades Hall Council said yesterday the Labor committee's decision showed nothing had changed under new Premier Nathan Rees.

"It's very disappointing," secretary Gary Kennedy said. "I had hoped the Premier and the new ministers would walk away from this ridiculous sale.

"And now jobs are at risk. A new owner would cut costs and jobs.

"Job guarantees only last three to five years."

Mr Kennedy said the Government had privatisation plans for Cessnock jail, ferries and rail maintenance, to the detriment of NSW residents.

Mr Kruse said the Government planned to lease out the wholesale contract for electricity but keep the generators in public ownership.

Former premier Morris Iemma failed to gain ALP approval to sell electricity assets, leading eventually to his resignation.

Mr Iemma's original proposal included selling the retailers and leasing out the power generators under long-term agreements, which would have raised about $10 billion.

The aim was to prevent NSW from having to spend $15 billion on a new baseload generator and upgrading generators.

Premier Nathan Rees and Energy Minister Ian Macdonald did not comment yesterday. with AAP