Crown Resorts and the Star Entertainment Group announced on April 16, that they will access debt funding to cope with the forced closures to their casinos.
Despite the closures, both companies have continued operating costs that are estimated to be in the millions.
Star Group estimated their costs will be about $10 million (US$6.3 million).
Thousands Laid Off
On April 16, Crown said that it had let go of 95 percent of its staff, or 11, 500 people. While Star let go of 8, 500 employees and terminated all casuals and contractors.Barton said, “I have a deep gratitude to our employees for their understanding and commitment during this painful and highly uncertain time.
“We are continuing to investigate ways in which we can support our employees on an ongoing basis,” he said.
To that end, Crown Resorts have agreed to provide an ex gratia payment of two weeks pay to full-time and part-time employees who have been stood down, and a lump sum payment of $1,000 (US$635) to eligible casual workers.
On April 16, Star Group’s chairman John O'Niell said, “To temporarily stand down more than 90 percent of our dedicated workforce will be the most painful decision our senior management is ever likely to encounter.”
The Jobkeeer program allows businesses impacted by the pandemic to access a wage subsidy to continue paying their employees. Each business is able to claim a fortnightly payment of $1,500 (US$952) per eligible employee.
The executive and senior management staff of both companies will also take pay cuts, with Crown Casino staff reducing their pay packets by 20 percent for the next two months and Star Group’s chief executive officer will reduce his salary for the rest of the financial year by 40 percent.
