Crown Resorts stands down 11,500 as CEO Ken Barton takes 20% pay cut
James Packer’s casino group Crown is standing down 11,500 workers and giving its CEO a pay cut but will still pay its interim dividend.
Crown Resorts has stood down more than 11,500 of its employees, or about 95 per cent of its workforce, and chief executive Ken Barton will take a 20 per cent pay cut as the gambling giant responds to the coronavirus pandemic.
The company announced the standing down of its workers on Thursday morning, having shut its Melbourne and Perth casinos in late March in response to government orders to close non-essential businesses due to COVID-19.
Crown will provide an ex-gratia payment of two weeks pay to full and part-time workers who have been stood down and a $1000 lump sum to eligible casual workers.
The company is still committed to paying its interim dividend of 30c per share, which is due on Friday, and has also entered into new banking facilities worth $560m and a $450m project financing facility to support the continued construction of Crown Sydney.
Crown still expects to complete the Barangaroo project by the end of this year and has 1300 people currently working at the site. It expects to recruit more than 2000 employees in the lead up to the opening.
“We have taken the tough but necessary decision to stand down a large number of our employees,” Mr 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.”
Meanwhile, rival The Star Entertainment Group announced on Thursday morning it had stood down 8500 staff, applied for business interruption insurance and had executed an additional funding facility for $200m, giving it available cash and undrawn debt facilities of about $700m.
Star estimated that it would require about $220m cash if there is a three-month of its business to the end of June and about $320m if the shutdown is extended to September 30.
CEO Matt Bekier’s salary has been reduced by 40 per cent and non-executive director fees have been cut by 50 per cent 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 per cent 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.”
More to come
Federal Labor on a collision course with miners over green push
The federal government has made a powerful enemy for itself in the west after the Chamber of Minerals and Energy WA said it would fight Labor’s push for so-called nature-positive laws.
Lawsuit levels claims of staff exploitation against Lovisa
Costume jewellery chain Lovisa’s mostly young female staff were exploited, not given proper meal and rest breaks, and even forced to pay for and wear its products each shift, a lawsuit alleges.