Gaming giants Crown Resorts and The Star Entertainment Group have stood down 20,000 hospitality workers as a result of the COVID-19 shutdown.
Crown revealed this morning that it had progressively stood down, on either a full or partial basis, approximately 95% or over 11,500 of its employees. Only employees in business-critical functions remain actively working.
Star said that it had stood down 8500 staff from its Treasury Brisbane, The Star Sydney and The Star Gold Coast properties.
Star CEO Matt Bekier said: “The Star is implementing necessary and wide-ranging measures to strengthen the balance sheet and preserve liquidity in the current exceptional circumstances.
“The shutdown continues to have a significant impact on our people and their families, and the Group welcomes the Australian Government’s support, particularly the JobKeeper Payment program.”
CEO Matt Bekier’s salary has been reduced by 40% and non-executive director fees have been cut by 50% for the remainder of the 2020 financial year.
“These unprecedented challenges have had a considerable human impact,” Star chairman John O’Neill said.
“To temporarily stand down more than 90% of our dedicated workforce will be the most painful decision our senior management is ever likely to encounter. As a Board, and as a management team, there was no hesitation in reducing directors’ fees and senior executive salaries.”
Meanwhile, following the cessation of gaming activities and other non-essential services at Crown Melbourne and Crown Perth on March 23, 2020, Crown said it had been forced to substantially reduce its workforce through a series of stand downs.
“We have taken the tough but necessary decision to stand down a large number of our employees,” CEO Ken 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.”
To support employees during this period, Crown has agreed to provide an ex gratia payment of two weeks’ pay to those full-time and part-time employees who have been stood down (other than senior management) and a lump sum payment of $1000 to eligible casual workers.
Employees will also be able to draw down on existing annual and long-service leave entitlements in a range of flexible manners.
Barton and other senior management have taken a 20% reduction in fixed remuneration until June 30, 2020. Crown’s Chair and Non-Executive Director fees have also been reduced by 20% until June 30, 2020.
Crown has registered for the Commonwealth Government’s JobKeeper payment and is currently working through the implementation of this scheme.
