Retail workers in the Eden-Monaro electorate would be left out of pocket to the tune of up to $24.7 million a year if penalty rates were cut, according to research released this week.

The research, conducted by the McKell Institute, comes as South Coast workers prepare to meet in Batemans Bay to discuss plans to fight the attack on their take home pay. 

Shop, Distributive and Allied Employees’ Association NSW Organsier Athol Williams said that with a cut to weekend penalty rates currently firmly on the Federal Government’s agenda, the possibility of the economic hit was very real.

He said a cut to the penalty rates of retail workers alone, who make up 11 per cent of the total local workforce, would also hit the local economy hard, with a potential $13 million per annum loss of disposable income – money that would usually be spent in local businesses.

“When you add in hospitality, that figure jumps to up to $38.4 million of lost wages and up to $16.5 million in lost disposable income,” Mr Williams said.

“This would have a devastating impact on the South Coast economy and on local workers, particularly those in the retail industry.

“People rely on weekend penalty rates to compensate them for missing time with family and friends and to ensure they can pay their bills.” 

“The Federal Government’s recent Productivity Commission report recommended a cut to weekend penalty rates for workers in the retail and hospitality industries. If that recommendation is adopted, the South Coast community will suffer.

“This isn’t pie in the sky stuff. The threat of South Coast workers losing their penalty rates is now very real.

“Local workers are facing a multi-pronged attack on their penalty rates, including from employers, the Federal Government, the recent productivity commission report, and the local business lobby groups.

“A cut to penalty rates without compensation is a cut to take home pay workers can’t afford and don’t deserve.

“Cutting penalty rates will also have a negative impact on the local economy. Slashing the take home pay of workers would mean thousands of Eden-Monaro residents will have less money to spend in local shops and businesses.”

However just last month the Productivity Commission said penalty rates would have no effect on the "long-run" profitability of businesses.

"Penalty rates had, one way or another, little effect on overall long-run profitability of enterprises," Dr Lattimore said at a Senate estimates committee hearing.

Today’s meeting is at Lincoln Downs from 10.30am.